Hi, I am enjoying this forum. My situation is, I am on a disability pension and would really like to be independent, however I can't work. I have sold my home and am living in my parents house. I have $230,000 that I would like to invest. I have been looking at units at around the $220 to $240,000 mark. Should I buy out right, or should I borrow some of the money? If so, how much? Could it be possible to buy more than one unit with the money I have? I would like to somehow have a few IP but haven't a clue if this would be possible. What rental returns would oe expect on a $220,000 investment?
Any advice would be greatly appreciated.A. Beath
Hi
First piece of advice I'd give is read a good book on Property Investing – say Jan Somers. You'll pick up heaps of good knowledge for a very small outlay or even borrow it from your local library – they normally have stacks of books on Property Investing.
You should then take a serious look at your financials – try and work out how much you can contribute to loan repayments each month – this will give you a view of what the maximum loan you can afford. Talk to your bank as well – ask them the same question. At the end of the day they will be the one's that lend you the money.
The answer that comes out of this will really give you a good feel as to whether you can buy 1, 2, or 3 properties.
Good luck
The BishHey,
Mate I would suggest something similar the Bish. Invest a bit of time and or money in some education. Go get some professional advise from Accountants, Financial Planners even Mortgage Brokers about your situation. From there you will be better equiped to make an informed decision about what would be best for your situation and goals.
Cheers
ChrisFirstly welcome to the forum.
With a reasonable cash deposit you have the opportunity of being able to purchase a property or two and enjoy the rental yields they bring with them especially with minimal or no gearing.
Your marginal tax rate will determine whether you can claim much in the way of negative geared benefits especially non cash deductions and this in turn may determine the structure you use to purchase the properties in.
Even with a decent deposit if you long term aim is to build your property portfolio you will need to consider some form of gearing. With limited evidence of assessable income you may wish to consider the use of a Nodoc style loan.
Bear in mind this type of loan is a mortgage insured loan and the properties will need to be in acceptable post codes.
Feel free to bounce the description of such security of us and we can advise you whether it would be acceptable for Nodoc lending.
Richard Taylor | Australia's leading private lender
Thanks to everyone for the great advise. I am going to speak to a mortgage broker and also read the book sugested to me.
I live in Hervey Bay. QLD 4655 and have been studying the property market for a little while. I am thinking of buying one unit to start and have spoken to a real estate agent who says there is a flood of units on the market at the moment. He said it's a buyer's market. From what I have been reading, I need to find a motivated vendor. How I do that, I am not sure.
What rental returns could I expect from a $200000 investment?Thanks for your help.
A. Beath
Hi abeath,
Some good advice offered already.
I strongly suggest you get INDEPENDENT advice (not the recommendations of a real estate agent who is selling property). Although you say where you live, you don't say where you are buying the unit so it's hard to work out what the situation is exactly.
The main thing you need to do is find a good property that has a history of good capital growth. Forget about finding a motivated seller. If you find a motivated seller on a good property then that's a great bonus. I'd steer clear of units. A house with land is a much better option.
Cheers,
Mark
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