after a few ideas.
so far i was thinking
50k for a deposit
50k on shares
50k 7% interest in bank account.
Mat.
so far i was thinking
50k for a deposit
50k on shares
50k 7% interest in bank account.
Mat.
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50k for a deposit
50k on shares
50k 7% interest in bank account.
Not quite. 20% deposit, stamp duty + legals etc would put it closer to $175k. Big question is could that loan be serviced?If I was you I would buy an investment property in a high growth area for approx $700K.
Your $150K will cover the deposit, stamp duty etc. and you will stay under 80% LVR (Loan/Value Ratio) so you wont pay LMI (Lenders Mortgage Insurance). Use an interest only loan.
It's a good theory but if things always worked out that textbook we would all be billionaires by nowIn 5 years time your first property will be worth $1.1 million, and you will have two other properties worth $930,000 and $770,000.
You would have $1.7M debt and $2.8M worth of properties.
So your initial $150K would have grown to $1.1M of equity.
There's going to be a crash??Wait until after the next big crash.
There's going to be a crash??
Not quite. 20% deposit, stamp duty + legals etc would put it closer to $175k. Big question is could that loan be serviced?
It's a good theory but if things always worked out that textbook we would all be billionaires by now
IMHO diversification across classes as a risk mitigation measure is advisable for those worth at least 4 or 5 million.after a few ideas.
so far i was thinking
50k for a deposit
50k on shares
50k 7% interest in bank account.
Mat.
Time frame 10 years.
Or could throw 50k in 3 different bank accounts at 7% and take one month off ever 4 months but then after 10 years I would have made no money because would have spent interest I made.
50k deposit would be for a 250k property in Adelaide, looking at about 2,000 p/m repayments.
I guess when I aimlessly wrote 50k for shares, deposit, 7% bank. Was not really thinking I thought 25 years to pay off property, 50 7% x 25 years 237,681 interest and what ever the shares do make or brake. Must be a lot better ways to invest.
Shadow, I'd be very interested to hear your story. You have incredibly high serviceability: I'm also interested in your investments so far.
Alex
So, including the negative gearing benefits, and rental income, we can service about $2M... I don't think that is incredibly high, probably higher than average, but there are others on this forum who manage much higher debt (judging by other threads I've read).
What's your servicability like?
Buy in a high growth area. You can find plenty of areas in Sydney, Melbourne and Brisbane that will return 10%+ per annum average over the next 5 years. Get a Residex report to pick the good growth areas.