Hi all,
I'm after some explanations/your experiances/outside the square thinking...
How do investors on PAYG salaries continue to purchase Investment properties?
Specifically, If a couple on a combined income of $150k wanted to save 10% deposits and purchase (over time) a portfolio of properties, can anyone predict the number they could achieve?
How would purchasing positive cash flow properties vs purchasing "blue chip" but negative cash flow properties affect the outcome? Positive cash flow properties would (hypothetically) allow an infinite number of purchases, where the negative cash flow strategy would result in a higher portfolio value with compounding growth, but unless income rose the amount of properties would be dictated by the ability to meet repayments.
Another fundamental I don't quite understand that is often the 'answer' to the property mags "how to purchase 10 properties in 3 years" articles is -
If our couple purchased property A, gave it a Reno then used the equity to purchase property B, which also had a Reno to release equity for property C, every new purchase is going to require a higher repayment each time equity is released. Every new purchase would leave our couple with less cash at the end of the week. How do people continue with this strategy without selling???
Im trying to plan ahead!!
Thanks
I'm after some explanations/your experiances/outside the square thinking...
How do investors on PAYG salaries continue to purchase Investment properties?
Specifically, If a couple on a combined income of $150k wanted to save 10% deposits and purchase (over time) a portfolio of properties, can anyone predict the number they could achieve?
How would purchasing positive cash flow properties vs purchasing "blue chip" but negative cash flow properties affect the outcome? Positive cash flow properties would (hypothetically) allow an infinite number of purchases, where the negative cash flow strategy would result in a higher portfolio value with compounding growth, but unless income rose the amount of properties would be dictated by the ability to meet repayments.
Another fundamental I don't quite understand that is often the 'answer' to the property mags "how to purchase 10 properties in 3 years" articles is -
If our couple purchased property A, gave it a Reno then used the equity to purchase property B, which also had a Reno to release equity for property C, every new purchase is going to require a higher repayment each time equity is released. Every new purchase would leave our couple with less cash at the end of the week. How do people continue with this strategy without selling???
Im trying to plan ahead!!
Thanks