my advise would be not to get sucked in with this buy, 100% interest only, and then buy again 12 months later, and keep buying as soon as you can..
I would buy 1 good house, focus 4-5 years paying it down.. even pay it off in 7 years, then buy second IP, and do the same, second IP you can pay off in 5 years, 3rd IP you can pay off in 4 years..
Dont be a slave to banks.. pay off as much as you can before buying your second IP.. if you dont, when interest goes up, you will be caught like I was..
With this plan, in 10 years time if you own 2-3 fully paid off homes, you will have over 2 million in equity.. same cant be said with these highly geared property portfolios..
or at least get P&I loans, in 10 years you would have paid something off.. and for the sake of $150 per month, your better with P&I over IO
simple strategy is often the best.. and doesn't rely on capital growth. and you will be cash flow positive, in case things go wrong.
and I would add, live life now.. investing to be rich when old is a waste of time!!! enjoy your youth today! so you need a balancing act. I see far to many property investors which are worth millions, have several houses, are old... yet live like povos all their lives.. and cant get out of that rut and still dont enjoy their money when they are old.. how sad! know when to stop is also the key!
I would buy 1 good house, focus 4-5 years paying it down.. even pay it off in 7 years, then buy second IP, and do the same, second IP you can pay off in 5 years, 3rd IP you can pay off in 4 years..
Dont be a slave to banks.. pay off as much as you can before buying your second IP.. if you dont, when interest goes up, you will be caught like I was..
With this plan, in 10 years time if you own 2-3 fully paid off homes, you will have over 2 million in equity.. same cant be said with these highly geared property portfolios..
or at least get P&I loans, in 10 years you would have paid something off.. and for the sake of $150 per month, your better with P&I over IO
simple strategy is often the best.. and doesn't rely on capital growth. and you will be cash flow positive, in case things go wrong.
and I would add, live life now.. investing to be rich when old is a waste of time!!! enjoy your youth today! so you need a balancing act. I see far to many property investors which are worth millions, have several houses, are old... yet live like povos all their lives.. and cant get out of that rut and still dont enjoy their money when they are old.. how sad! know when to stop is also the key!
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