Hi
I have been reading the forums the last week. Thanks for all the info,
We moved to Oz a couple of years back. We have a mortgage worth 250,000 and the value of the house is currently valued at 400,000$
Between both my partner and me we make a combined income of 175,000 per year.
Do you think we should pay off the mortgage before we think of investing or would it be worth it to invest in an IP even with the mortgage.Thanks for all the advice.
BGHi Beegee,
why not do both. Get cash+ IP as well as pay down your mortgage as much as you can or even faster over time. You’ve got plenty of equity to borrow against – if you purchase and is CF+ and/or +geared you can maintain or increase rate of mortgage reduction. There are plenty of other influences & factors such as lifestyle, aspirations etc. to obviously consider. You may be in a position to purchase more than one cf+ property. I am not qualified to advise and these are my thoughts only.
All the best.
Steve BHi beegee
Have a chat with your accountant at a combined income of 175k the ato will be loving you and won’t want to lose you.
This is not financial advice and shouldn’t be seen as such I DON’T GIVE FINANCIAL ADVICE.
Your own home is the most valuable for storing money as it is low on tax when sold but the interest is dead money.
I wouldn’t tell you how or what to do because you need to get a vehicle that (a) reduce your tax (b)flexible for personal changes (c) growth
post your state city and maybe a broker here can give you an accountant in your area.
first call would to the pencil guys at this income you are going to need one anyway for your tax return and don’t tell me you are using one of those shopping center kiosk’s.here to help
With a combined income of $175k per year, no you shouldn’t pay off your mortgage first, you should pay mine off then pay yours off.[biggrin]
I would really use that income to set myself up nicely through investing and put my home mortgage on the backburner. But of course it’s up to you. You could always invest quite conservatively while paying off your mortgage, say in the next few years, then with a fully paid off house and the security this would probably bring you, then it could be full throttle investing to create a really nice future for yourselves.
You should speak with one of the many capable brokers on this forum who could really help you to maximise your situation and to get the most out of your many options.
Good Luck…G7
Sooner one invests, the sooner one gets the magic of compounding.
try 5% growth per annum on one property over 30 years, and look at the value.
then try 5% growth per annum on 5 properties over 30 years and look at the value.
Neutral gear your houses with tax breaks and depreciation and the help of tenants rent, It might not cost you much more a week out of your pocket. Later, you may wonder why you didn’t start sooner.
Try asking any seasoned investors if they wished they had started LATER than they did!!!
The mortgage is insignificant compared with the potential of a large portfolio to grow.
Just my thoughts, this cold wintery evening :o)
Live, Learn and GrowLifexperience
Hi Beegee
I agree with a lot of the posts already put forward. Dont wait until you have paid of your home loan before you start investing.
With net income around the $10K a month mark you should ensure that you loans are set up to maximise the interest savings.
By all means utilise the available equity in your PPOR to start investing but also remember that your home loan imterest in not tax deductible and needs to be repaid as quickly as possible.
Start by consulting a good independant mortgage broker to work out the best way forward.
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Sure thing, get into the market at your earliest and don’t limit yourself, you are currently paying a whole heap of tax and need to get that back.. One of the ways you can do it is by investing in property..
Don’t forget, Do Your Research!
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auIf it were me, I would be buying now as the longer you leave it the more growth you sacrifice.
The above posts are great thoughts.
Megan
http://www.propertyhub.net
Your Investing and Developing Information Hub.Who is still investing in property when the sharemarket is booming. If you want a poor 2% or 5% per year better going for a saving account. managed funds are easily paying more than 15%, I got 30% last year and this year is getting close to 15%. They also have the magic of compounding and you can sell any time.
Just my thoughts?
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