All Topics / Finance / Understanding needed please

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Deano76Deano76
    Member
    @deano76
    Join Date: 2009
    Post Count: 10

    I am only new to all of this, so i am trying to put it all together at the moment.
    I have my own house with a morgage, and have 10,000 cash to invest, now i understand that i can use the cash for a deposit on one house and get + cashflow, but how do i buy my second third and fourth house???
    I would like to buy 5 houses this year but do not understand how i can get the deposits for the rest.
    This may be a stupid question but it is what i need to know please.

    Profile photo of freelancefreelance
    Member
    @freelance
    Join Date: 2008
    Post Count: 93

    Every goal is achieved one step at a time.

    Just make sure that every investment you purchase allows you to make another step forward, i.e. growth or income focused investments will provide different results.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Deano

    Firstly where possible do not use your own cash as a deposit whilst you still have a non deductible home loan.

    You are better off to borrow the money so that the interest is tax deductible and use any surplus cash to reduce your non deductible debt. There are a couple of ways to do this.

    Utilise where possible the equity in your property to fund deposits and acquisition costs and then have each new investment loan standalone on the purchased security.

    You are able (with certain conditions) to borrow upto 100% of the investment property purchase price and therefore would only need to cover your purchase costs such as stamp duty, mortgage insurance etc etc.

    There are a couple of other strategies could can also employ such as Vendor financing however obviously the seller may not be prepared to offer such a facility.

    Structuring it correctly from day 1 will help you move forward quickly and with less problems in the next deal.

    Richard Taylor | Australia's leading private lender

    Profile photo of Deano76Deano76
    Member
    @deano76
    Join Date: 2009
    Post Count: 10

    Thanks Richard it all makes sence now, the peny just dropped.
    I may also be looking at buying a business, can you organise business loans?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Business loans are not as easily available as they were and will depend on the business itself.

    Many lenders now require property security unless the property is a franchise.

    Horses for course.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Business loans are not as easily available as they were and will depend on the business itself.

    Many lenders now require property security unless the property is a franchise.

    Horses for course.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Business loans are not as easily available as they were and will depend on the business itself.

    Many lenders now require property security unless the property is a franchise.

    Horses for course.

    Richard Taylor | Australia's leading private lender

Viewing 7 posts - 1 through 7 (of 7 total)

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