I have Debts at the moment of 32,000AUS from 4 years overseas. I have lent 20K from my parents, and the rest is owed to a financial institution in the UK. My mother is willing to go halves to purchase an investment property with me, what is the best way to borrow more (i,e – what type of loan – interest only etc) and buy an investment property to consolidate and at least be achieving something and moving forward, rather than paying back money for nothing. I do not want to leave myself with extremely high monthly repayments. I think if at least there is a tenant in-house then they will be helping contribute towards the loan etc etc
Hi FR,
For what it is worth I would prefer to see you make a concerted effort to reduce your existing debts before embarking on any investment program.
Use 2006 to pay down the one of the loans (I assume there are two loans $12K + $20K) and then look at a joint investment with your mother.
As for financing investments – many investors prefer interest only as this reduces your monthly outgoings. Having said that there are some who pay P and I in order to own the property outright. It really comes down to you beliefs and goals.
Certainly a tenant will pay rent which assists with the monthly interest bill and other outgoings. Whether or not they meet the full amount is dependent upon where and what you invest in.
Derek
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http://www.pis.theinvestorsclub.com.au
0409 882 958You cannot consolidate until you have equity, so you may have to buy something and wait 6 months or so, and then increase the loan to payout your other debts.
Terryw
Discover Home Loans
Parramatta
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