Hi
I'm after some ideas for what steps to take. to start building a property portfolio.
I have 2 young children, so only work part time earn less than $20k pa. to much assets prevents me from centerlink benefits, so need to get the assets working.
I have a home valued at $240k in country Vic. with $95 left to pay off fixed till june '10 It desperatly needs work and I want to extend so we fit, I expect this to cost about $100k
I have land owned out right that I am sub dividing in to 2 blocks – should have final value of $95k – $115 k each I need to get power on this will take at least 6mths to complete then ???? to sell.
I have $185k in term deposit – accessable soon
Would I be wise to pay off the home loan first and then re borrow for an IP, I worry that my low income will prevent this?
Does anyone have any suggestions where I should start, My goal is to be financially independant in 5 – 10 years.
All advice will be greatfully received.
With equity in a property there is no reason why you wouldnt be able to borrow against iit.
Whilst there are a range of products available you need to bear in mind that the bottom line is your home is at risk if you are unable to cover the loan repayments so always make sure you have a fall back position.
There are a few other considerations however my suggestion would be to get an independant mortgage broker with experience with investment properties working on your behalf. It will cost you nothiing and you will be able to draw on their experience in what is an important part of the development jigsaw.
Richard Taylor | Australia's leading private lender
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