Finance

[WebBoard]

From: Mike .


Borrowing
From: [email protected]
Date: 8/6/00
Time: 9:45:57 PM

I currently have an equity in my own home ($300k) with a mortgage of $185k.

I have purchased Jans' book (Building Wealth) however I am still uncertain whether I should proceed with an investment strategy or pay off mortgage.

Is it wise to borrow for the negative cash flow ?

Grahame

 

[WebBoard]

Ian (NSW)

Reply: 1
From: Mike .


Re: Borrowing
From: Ian (NSW)
Date: 8/7/00
Time: 1:02:45 PM

Welcome to the forum Grahame.

I'm not one of the wisened regular respondants here but I do drop a note frome time to time...however, I do read every post!!

It is from this forum and everyone's input that I have been able to put all the info from books, ideas, goals and far fetched dreams into action.

3 IPs later (highly neg. geared) I am still learning but have consolidated my ideas and am more focused on how I want to do things (aim for development and cashflow +ive).

So to answer your question more directly...it really depends on how you wish to approach your wealth creation. Depending on your outlook on capital growth, or if you desire significant taxation concessions, or how aggressive and adventurous you wish to be etc.

From the figures you have presented you have a significant platform to work from. I do recommend getting into some research...boots and all...you have already found the perfect place to start!

Hopefully some of our more astute forumites will take up from here.

Cheers Ian

 

[WebBoard]

Sanchez

Reply: 1.1
From: Mike .


Re: Borrowing
From: Sanchez
Date: 8/7/00
Time: 9:35:28 AM

Do your sums.