Hi, I’ve almost finished reading Steve’s first book. I’ve done a little research and believe I have found some properties that would be positively geared. I haven’t spoken to my accountant yet but like the idea of opening trust to borrow money.
I was wondering how it is that people are able to buy multiple properties? After spending the deposit on the first IP (60k+) it would take me a very long time to be able to save that money again. Just wondering how you guys are doing it or have I missed some important bit of information.
Thank you
I’m not very smart so I’ll let the others explain it better.
It’s all about buying places that have the ability to make you money as lump sum cash gains. Wether this is a Reno property or something that is undervalued or it perhaps has anther problem you can rectify. Re read the sections about identifying problems to create solutions. That is where you make the gains that increase your cash and allow you to reinvest on other properties.
Improving the quality of a property gives you equity. Equity allows you to keep buying
xo
Quite a few different ways Curtis, you can:
*Save for the entire next deposit
*Buy well and use equity from first purchase and or in combination with savings
*Buy well and use cash to renovate the first IP and then use new equity to purchase againI wrote an article on this exact situation a little earlier this year about stretching your deposits at http://www.precisionfunding.com.au/11366/
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
was wondering how it is that people are able to buy multiple properties?
Savings, equity or a combination of both.
The first property or two are usually the hardest. Hopefully CG kicks in after and you can release equity to rinse and repeat.
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]
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