Hi guys,
I just thought I might share my first few goals into investment and hoping to get feedback or other things I should maybe consider as I'm really new to investing. Also the goals that I'll be mentioning is for the year 2012.
I'm 21, currently living in my PPOR with mother/brother. The loan is IO @ $1,900 p/m. loan = $319,000 (30years) variable @ 7.16%, cost of house = $355,000, house value = $430k-$450k, overall income in the household p/m = 5k(currently, it will be 6.8k early next year as things will change).
I hope I didn't miss out on any figures...
Now I've been living in the property for 2 years now, basically threw away $40k of paying IO into the bin, but the family had no choice. Good news is we are moving out to a relatives place early next year. We will pay $500 p/m for rent, which is better news, and put tenants in the property. Expecting return of $370-$400. When all this is happening I'm planning on converting from PPOR to IP so I can claim tax on the property. I'm also thinking to refinance, I might need a hand here, to reduce monthly payments by getting a lower rate with a different lender, but then there all these costs gets involved in refinancing OR do I release equity in the existing home to use as a deposit for next property purchase?
Another goal for the end of 2012 is to at least put $25k into the offset-account. Which means, I'm trying to positive gear the property? I'm really confused about negative gearing or positive gearing, what would work best in my situation?
The strategy for the property I'm living at the moment will be through capital growth(hold/sell), there will be a town centre being built next year in Craigieburn (where my property is), so hoping for that to increase the property's value.
That's pretty much all about it. Is there anything I should consider or maybe take into consideration? Would you guys want to add any goals for me? Does all this seem right?
Any contribution will be much appreciated. Thank you.
Regards,
Tony
I just thought I might share my first few goals into investment and hoping to get feedback or other things I should maybe consider as I'm really new to investing. Also the goals that I'll be mentioning is for the year 2012.
I'm 21, currently living in my PPOR with mother/brother. The loan is IO @ $1,900 p/m. loan = $319,000 (30years) variable @ 7.16%, cost of house = $355,000, house value = $430k-$450k, overall income in the household p/m = 5k(currently, it will be 6.8k early next year as things will change).
I hope I didn't miss out on any figures...
Now I've been living in the property for 2 years now, basically threw away $40k of paying IO into the bin, but the family had no choice. Good news is we are moving out to a relatives place early next year. We will pay $500 p/m for rent, which is better news, and put tenants in the property. Expecting return of $370-$400. When all this is happening I'm planning on converting from PPOR to IP so I can claim tax on the property. I'm also thinking to refinance, I might need a hand here, to reduce monthly payments by getting a lower rate with a different lender, but then there all these costs gets involved in refinancing OR do I release equity in the existing home to use as a deposit for next property purchase?
Another goal for the end of 2012 is to at least put $25k into the offset-account. Which means, I'm trying to positive gear the property? I'm really confused about negative gearing or positive gearing, what would work best in my situation?
The strategy for the property I'm living at the moment will be through capital growth(hold/sell), there will be a town centre being built next year in Craigieburn (where my property is), so hoping for that to increase the property's value.
That's pretty much all about it. Is there anything I should consider or maybe take into consideration? Would you guys want to add any goals for me? Does all this seem right?
Any contribution will be much appreciated. Thank you.
Regards,
Tony
so after I have saved up money in the off-set account and returning cash-flow positive, your suggesting to use that as a deposit to purchase my #2 IP, ok so if I want to go ahead and purchase my #3 IP do I use the equity from the #1 IP??? or just do the same process with purchasing #2 IP?
