I agree with what the majority of people have said… And thanks for posting that saving strategy Chris!
The most important thing to concentrate on would be reducing that personal loan ‘bad’ debt, and increasing intellectual knowledge in the mean time! So, while you pay down that debt, read read read, and grow more and more knowedgeable.
As Chris mentioned, there are a million cash management account sout there (CMA) where you can park your earnings and generate some sort of (some would say modest) return. I’m using an ING Direct account which returns 5.85% variable, calculated daily paid monthly… But if anyone would care to recommend something similar, or better, I’d also be keen to listen!
Hi Sarah
Great that you are able to move back in with your parents.
You did not mention whether this loan was secured by anything i.e. a car, boat, something tangable. If you are really keen to get into the property market I can see you may want to keep additing to that 7k. I have some suggestions you might be able to consider.
If not and you are happy to wait, It would really think is would make sense to concerntrate on knocking off as much of the PL as you can as fast as you can. You are on a good wicket earning that kind of money, so take advantage of being at home while perhaps only paying minimal board.
That 7k, while nice to have as security would be better off working hard against your loan. You can get about 6% at call in some cash management accounts, but to hazzard a guess you are probably paying significanltly more in interest for the loan??
Keep reading the book, and if you can grab a copy of the second is worth a read too. I found both book invaluable in creating my investment plan. I use to think the only way to make money out of property was negative gearing! What a fool!
If you don’t want to publish all the details on the forum, I’d be happy to share some of my ideas so PM me and I will elaborate on what I have done in the past with a few of my loans. I have a friend who is a broker and he has imparted a fair bit of knowledge my way. It may just give you some ideas where you can then head off with to get some professional advise which is a must.
While there is a heluva lot of knowledge on the forum always seek professional advise when you think you have decided what you are going to do. I have come up with what I thought were great ideas only to find out there were clangers!
Live and learn as they say, you never stop learning
Cheers
Simon Cas steve says – look into home loan finance while you do not need a loan. You might find a low or no deposit type home loan at the moment as banks have less people borrowing money. St George bank is one bank I do know offers no deposit loans but you have to pay mortage insurance as LVR is not 80%. You have to be in the game as prices will increase while you save deposit.
As steve says think laterally when it comes to investingHey Sarah,
I’m in an identical position to yourself. 8K savings, 35K PL and earn 75K. saving approx $350 per week.
I sought advice from various people as to how to get onto the property ladder asap.
It seems that having a 35k PL, and 35k in savings was a stronger position to be in than paying all of your PL off before saving a deposit. Both scenarios are $0 equity!
I fully understand that the interest on a PL is a lot higher than that of a savings a/c, so is costing more. But I believe that you would be able to buy a property sooner this way.
You’ve done the right thing by posting in the forum…there’s been some great posts which I’m sure will have helped.
Good luck with the savings………
Originally posted by foundation:Victorian average rateable value 1891 = 500 pounds.
– at 10% (doubling every 7 years) that would be 32.768 million pounds, or $65 million in 2003 dollars.
– at 7% (doubling every 10 years) that would be 2.048 million pounds or $4.096 million dollars in 2001.Nowhere near reality.
Hi F ,
where is this average block in 1891 for 500 pounds , if it is in Collins St or St Georges Tce, I will buy it for $4.096M.
[biggrin]Wholesale Property Brokers
http://www.wpb.com.au
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