Hi there everyone,
I am trying to write my plan for property investments, my idea is to pay off about half mortgage then,”piggy back” mortgages, using mulitiple rental incomes to pay off the existing mortgages, etc etc. eventually having 4/5 propertys paying off one mortgage,I hope this makes some sense,
Many regards,
Jason 24, My Lawley WAWhy pay off any mortgage? Will decrease your cashflow.
Have a think about that for a bit and see what you think?
With IO on all loans you can probably get more property. Inflation will make the debt smaller each year anyway. If you do pay it down then do so in an offset account not straight off the Principal.
Discussion anyone?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Jason,
I understand what you are saying, but I would tend to agree with Simon with having IO mortgages. If you want to pay in extra, pay it into an offset account, so you have easy access to the money for your 6/7 purchase.
Having said that I have 1 mortgage at the moment that is P&I, due to the fact that I really wanted this place but didn’t have everything sorted at the time, so I borrowed 90%, incurring LMI, thus not being able to have it as an IO loan. This was in Perth though where it is in a rising market and the plan is to have it revalued within the 12 months. The valuation should come very close to having the loan to new value being 80%. I’ll then shuffle things so it is at 80%, then request a refund on the LMI, and convert the loan to an IO loan, freeing up an additional 200+ per month.
In the meantime, upstamp another mortgage that has sat there for a couple of years to 80% LVR. This gives me a deposit, the 200+ gives me cashflow to ensure that I can fund a -cf purchase.
Mal
Getting out of your comfort zone, can help you become comfortable
IO is theway to go o investment properties, unless you are relating to you Ppor??
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Thank for your replys guys, Much app.
I am a little doubtful, on IO lones, maybe its my inexpierience, I know that some good friends of mine have come stuck, on such a loan.
It will however be for a buy and hold property, to be let. I will be consulting some brokers in the coming weeks, in Perth.I do however am only a month or two away fropm owning my unit in Perth, does this change things, it has redcently been valued at 220k
thanks agin,
More ideas would be great alsoJASE
hi meakinmaster60
The idea is right from my point of view and is a basic cormer stone of part of my structure so yes it does work you need to get the structure correct and thats one of the points simon has made what you are talking about is a balanced portfolio and there are other things that come into play with this type of structure.tlak to a broker and a couple of investors in the sticks ( perth) and you should be able to organise it is very important to do the foundation correct from the start and then what I call mirror from there.
Its the same this one and then the next and the next.
not sure of the post but it was within the last week or so that explains it a little better.
happy readinghere to help
Thank you, I do agree, if i am goning to go hell for leather, I want to get the sturucture and planning right the first time!
I will see what happens in the next week or two,
This site, is great. Much better than some of the others I have seen,
Cheers,
JaseJASE
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