If all you had was the equity in your home (say 50%) and it was worth about $350K in a slowish market (Sydney middle suburbs), and you had a little redraw of around $30K for a rainy day which would be better:
1 - stay put, pay off as much as possible on remaining loan and be happy with that in the hope to own it in a dozen or so years?
2- venture into an IP (max borrowing capacity of $250K) and aim for capital growth to improve yourself in 10yrs or so whilst -ve gearing?
Without a major initial cash amount to spend are there any alternatives apart from extra super payments, putting weekly extras into shares or a savings account, none of which I'm overly keen on? I see (1) or (2) as the only suitable alternatives, but not sure which would come out best in the end. And yes, I will be seeking financial advice, but seeeing as this often costs big $$$ I'm interested in people's opinions or what they've done in a similar situation.
Cheers, investment novice.......
1 - stay put, pay off as much as possible on remaining loan and be happy with that in the hope to own it in a dozen or so years?
2- venture into an IP (max borrowing capacity of $250K) and aim for capital growth to improve yourself in 10yrs or so whilst -ve gearing?
Without a major initial cash amount to spend are there any alternatives apart from extra super payments, putting weekly extras into shares or a savings account, none of which I'm overly keen on? I see (1) or (2) as the only suitable alternatives, but not sure which would come out best in the end. And yes, I will be seeking financial advice, but seeeing as this often costs big $$$ I'm interested in people's opinions or what they've done in a similar situation.
Cheers, investment novice.......
