Hi there,
My partner and I are currently renting in Hobart and saving for our first home. She has owned a home before and sold it, so we can’t get the first home owner’s grant if she is on the paperwork.
So at the moment we are both saving, and we will get a loan that doesnt require a savings history, (money can be from a gift) and the loan will have to be in my name only for some time.So once we get our first home together, whats the next step to being able to get an investment property.. is it simply a matter of saving another deposit? Is it worth saving to improve the house we buy (and live in) and then re-value it and use the difference between what we owe and what the house is worth (if its increased enough) for a deposit on another house?
At this stage I can only borrow about 185000 based on my own income, and we are will probably have about 15k saved up by about April next year (which is when our lease is up where we are renting)
Whats the strategy to change from grinding away at job and paying of loans to living on rental income from numerous investment properties?
Hi Voigtstr
The method you mention is the traditional way i.e. save for your deposit, get a house, save for the next etc, but you are limited by the speed at which you can save. There are other alternatives such as using equity in the home you own to fund the next one e.g. if you have a home worth $200,000 with a $100,000 loan you can use the $100,000 (or part thereof – depends on how much the bank will lend you) as a deposit for the next.
When you first buy, you usually don’t have much, if any, equity other than what you saved, assuming you have a traditional 80% loan however as properties increase in price, the equity that you have increases. Of course, this depends on what happens in the market and, at the moment, it does tend to be a bit flat however over time, if history repeats itself, this will happen.
There are other strategies too that can fast track your accumulation of wealth. I recommend you do some reading – Steve McKnight, Dolf De Roos, Robert Kiyosaki, etc will all give you pointers. Then there’s wraps, flips, developing and more. Best to read up as much as you can then design your own strategies to suit your level of comfort, experience and preferences.
Also, grab a copy of Property Investor magazine from the newsagent. They feature people each month who are on the investor track and how they did it.
Good luck
Megan
Hi’
In addition to the great advice already given I would suggest that if your partner is not your wife then perhaps you could get the FHOG !!!!
hrm
Originally posted by hmackay:Hi’
In addition to the great advice already given I would suggest that if your partner is not your wife then perhaps you could get the FHOG !!!!
hrm
Thanks for that, yes at this stage we plan on her not being on the paper work at all (at some stage we would have to get her on there I expect… would that be more stamp duty?)
That would be selling some of the house to her and stamp duty would be charged.
CATA
Asset Protection Specialist
[email protected]
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