I am just starting on this path and I was hoping someone might steer me in the right direction.
I am fortunate in that I am earning good money ($120K) and paying almost no rent as it is company subsidised. Most of my money is in shares ($40K), and I will leave it there, but I have about $10K in cash for a deposit.
Speaking to a bank, only one so far, I can borrow up to about $350K.
So...what do I do?
1. Do I buy an IP worth ~$100-$130K (I&P loan) and just pay it off quickly to build up security.
2. Do I do the above with an IO loan of ~$70K and a credit line of ~$30-$60K. Assuming I can still borrow up to the amount originally suggested (do banks work like that?), I can use the credit line to get the deposit for another property worth ~$180K and get another IO / credit line loan - so I have two properties instead of one?
3. Do I wait and save up the rest of the deposit and just get one house worth ~$300K?
4. Something else I have not thought of?
There is a unit I am interested in that is only $100K, but I really am unsure just how to start!
Any help would be appreciated.
Thanks,
John
I am fortunate in that I am earning good money ($120K) and paying almost no rent as it is company subsidised. Most of my money is in shares ($40K), and I will leave it there, but I have about $10K in cash for a deposit.
Speaking to a bank, only one so far, I can borrow up to about $350K.
So...what do I do?
1. Do I buy an IP worth ~$100-$130K (I&P loan) and just pay it off quickly to build up security.
2. Do I do the above with an IO loan of ~$70K and a credit line of ~$30-$60K. Assuming I can still borrow up to the amount originally suggested (do banks work like that?), I can use the credit line to get the deposit for another property worth ~$180K and get another IO / credit line loan - so I have two properties instead of one?
3. Do I wait and save up the rest of the deposit and just get one house worth ~$300K?
4. Something else I have not thought of?
There is a unit I am interested in that is only $100K, but I really am unsure just how to start!
Any help would be appreciated.
Thanks,
John