I’ve read 0-130, am currently studying Buyer Beware and Investment Detective, and I’m ready to give property investing my all. Any suggestions who I should consult first re. the state of my personal finances. State of play:
Own home (Last bank valuation Feb. 04 = $280K)
Loan Balance = $188K
Vacant block for dream home (Bank valuation Dec. 04 = $160K)
Loan Balance = $126K
No other debts.
Managed fund current value $50K
Both of us have secure jobs earning $100K combined.
We want to get out and be financially independent!
RowenicSet your goals.
Where do you want to be in how many years?
Be specific about what level of income you need to have when you finish work.
How much can you afford to put into investments now?
What investments suit your personality and your level of risk?
Get educated about investments overall, not just property.
Read all you can about what financial independence means, how to invest, where, what, how. Books are a great start, as are forums like this one (and others!) for chatting to and learning from fellow investors. Also great are mags like Personal Investor and API.
Diversify.
Know your comfort zone when it comes to risk.
Find yourself a good financial planner if you want to go down that road.
Stay motivated and, above all, enjoy the journey!Cheers,
Pro-Activehttp://www.invested.com.au Australia’s premier Investor Education site
Hi Rownenic
One of the first things i would do is use that 50 k to pay off more debt.You would be paying more in interest on you existing home and land loans than what you would be earning on the 50k.By paying that 50 k off your loan it would free up about $80 a week which could go to your home loan which would enable you to have more equity in your home to purcahse more property.I know the 50 k makes you feel warm and fuzzy knowing its there but in the end you want to pay off as much non tax deductible debt as possible.As for you dream block it might pay to sell that aswell and use that left over monies to pay off your loan aswell.I know it seems a bit harsh of me to say sell your dream block let alone cash your 50k in but in the end if your property investing works out well over the years which im sure it will, then the block you call a dream block now will be nothing compared to what you will be able to purchase down the track with good investing.
If you did as i suggested this is how it would pan out for youexisting home loan $188k
cash in 50 k -$50k
sell dream block -$34 left over
balance on home loan is $104kIn regards to your salaries you could live off the lesser salary and pay off the existing mortgage on your home with the higher salary and own your home out right in 18 months to 2 years time.Lets face it 2 years would fly by.
just my thoughts
Cheers Rob
You must be logged in to reply to this topic. If you don't have an account, you can register here.
