I have been to see a few property investment type people to maybe assist me .
All providing differring levels of help.
As I don't have a lot of time free to chase up property deals on the eastern seaboard . A couple of the groups I have spoken to have provided sample ideas or scenarios . Which include forever using equity to purchase more and more property over the coming years , I am 52 yrs old and already have 3 properties here in WA .only one is under mortgage still 114000 owing .The idea they have is to never own anymore properties , and basically build a gravy train I call it ,of equity and at the end of it all ,just keep scooping money off the top of the equity .What some others had suggested were to have enough property to support having loans out against them and live off the loans .
And another is the what I would call the mum and dad way of having enough property so at the end of it all can use one or two of the properties sold to pay out the remainder and so in retirement not having any kind of debt to juggle with markets in order to have a good income ,but which would still allow for the odd vacant tenancy occasionally .Which is the way my parents have done it ,less stress
too .Any thoughts appreciated please .
I have some decisions to make and also will speak to my accountant on some of these above .
ideasslowachiever wrote:<The idea they have is to never own anymore properties , and basically build a gravy train I call it ,of equity and at the end of it all ,just keep scooping money off the top of the equity .The new NCCP legislation coupled with stagnant/decreasing growth in most property markets at present would make this a very difficult (if not impossible) strategy to employ.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie .
I am a bit concerned at the strategies some of the groups offer as anything to do with using excessive amounts of equity for funding multiple properties has got me worried .I have only ever used my own deposits .
Some are telling me I shouldn't even bother with commercial property ,I have one already an industrial factory unit .I was looking at a second ,and were told they hope I hadn't gotten it yet .Hi slow achiever
I thought you were talking about living off equity (ie tapping into equity and using it to fund your lifestyle).
I don’t have a problem with accessing equity to purchase further properties. That’s how most of us build our portfolios.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Does using existing equity to buy more properties really work?
ok scenario
a. property 1 cost $200K, paid off $50K in 5 years and now the property is worth $400K and remainig loan $150Kok since the property is now worth more we can refiance and borrow 80% of the $400K than is $320K to use to borrow the 2nd investment property.
What i dont understand is now the debt is actually $320K + $150K = $470K debt….
If we continue to do , wouldnt the debt be higher and higher? how can one pay for this on a average salary?
If you were topping up to 80% you’d have access to $170k ($400k x 0.8 = $320k). Take $320k and subtract existing loan of $150k – giving you $170k to access.
The property that you purchase receives income in the form of rent. That how it’s possible.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
slowachiever wrote:I have been to see a few property investment type people to maybe assist me .
All providing differring levels of help.
As I don't have a lot of time free to chase up property deals on the eastern seaboard . A couple of the groups I have spoken to have provided sample ideas or scenarios . Which include forever using equity to purchase more and more property over the coming years , I am 52 yrs old and already have 3 properties here in WA .only one is under mortgage still 114000 owing .The idea they have is to never own anymore properties , and basically build a gravy train I call it ,of equity and at the end of it all ,just keep scooping money off the top of the equity .What some others had suggested were to have enough property to support having loans out against them and live off the loans .
And another is the what I would call the mum and dad way of having enough property so at the end of it all can use one or two of the properties sold to pay out the remainder and so in retirement not having any kind of debt to juggle with markets in order to have a good income ,but which would still allow for the odd vacant tenancy occasionally .Which is the way my parents have done it ,less stress
too .Any thoughts appreciated please .
I have some decisions to make and also will speak to my accountant on some of these above .
ideasYou should speak to an Financial planner.
As they will teach you how to maxmise your Super’s benefit ( especially given your age); Their are insurance Bonds that you can take out as part of your super- it pays constant Yield – Franked at 30% + no capital gain tax after 9 years.I say since you dont want to access equity to invest in the property market ( which i understand) – your best bet is to speak to a Financial planner.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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