Hi, im hoping someone can give me guidance.
I am wondering how i invest in property with little money! i have a mortgage but have some other debts. and recently gained an inheritance of about $25,000. do i pay this money off my debts (credit cards, personal loans) or use it to obatain an investment property??? i have no savings and am 42 y/o. my income is very average. Any info would be appreciated.Hi mitresquare – and welcome to the forum! To answer your questions, as far as borrowing more to invest, a lot would depend on how much you owe on your current mortgage, as you may have some equity (extra funds you have paid in or increase in property value, or both) to help out. You could possibly buy a cheaper property somewhere using your inherited money as the deposit, but that being said, it really comes down how much of a loan you can ‘service’, based on your income and liabilities…..the two things that ‘kill’ servicability for all but high income earners are – you guessed it, personal loans and credit cards with high balances/limits. Seeing you pay much higher interest on these than on a house loan, and a lot more than your property will return short term, it may indeed make better sense to use this money to pay out your personal loans and debt, and then you will be in a great position to both borrow for another property, and also work hard to save up the deposit. Just a thought…..all the best. [strum]
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