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From: Mark Ryan
hello to everyone!
i posted this question last night but in the wrong place (meeting point) so i'll try it here as well.
right heres the thing its just myself with a $31k income (without any equity in any property) and $20k to invest, id like it to be in IPs. if i use this money as deposit for a $220k-$250k IP. the LVR as you can see isnt that flash 95%.
now the twist my parents also have $20k they like to use wisely. their thinking is to combine the two in a IP under my name and have them as tenants, which would bring down the LVR to around 88%, still not to flash.
option 1: use my money only and have a LVR well over 80% (95%). i would then have to take out mortgage insurance and the prospect of using the equity in that IP to continue building some sort of IP portfolio gets bog down, by how many years i dont know, because of my inability to service the loan.
option 2: to use both sets of moneyies and enter into some sort of 'tenant in common' agreement. this complicate things later when trying to invest further as both parties would have to be in agreeance to the proposal.
in the end i dont wish to enter into a investment thats going to max me out with no room to move, i wish to get this money moving as hard and fast as i can with a 10-15 year plan. the finical advisers ive seen this week have as you would expect tried to steer me towards managed funds, shares saying that they are more flexible and can earn you just as much as IPs with less hassle. but apart from their advise, Jan Somers books and other information gathered IPs are still my favoured idea for investing money. or because of my circumstances (salary) should i take these advisers advice and invest in shares.
so if anyone can offer any advice what so ever please do so, it will be much appreicatated. thanks for taking the time to read this far RYANO!
hello to everyone!
i posted this question last night but in the wrong place (meeting point) so i'll try it here as well.
right heres the thing its just myself with a $31k income (without any equity in any property) and $20k to invest, id like it to be in IPs. if i use this money as deposit for a $220k-$250k IP. the LVR as you can see isnt that flash 95%.
now the twist my parents also have $20k they like to use wisely. their thinking is to combine the two in a IP under my name and have them as tenants, which would bring down the LVR to around 88%, still not to flash.
option 1: use my money only and have a LVR well over 80% (95%). i would then have to take out mortgage insurance and the prospect of using the equity in that IP to continue building some sort of IP portfolio gets bog down, by how many years i dont know, because of my inability to service the loan.
option 2: to use both sets of moneyies and enter into some sort of 'tenant in common' agreement. this complicate things later when trying to invest further as both parties would have to be in agreeance to the proposal.
in the end i dont wish to enter into a investment thats going to max me out with no room to move, i wish to get this money moving as hard and fast as i can with a 10-15 year plan. the finical advisers ive seen this week have as you would expect tried to steer me towards managed funds, shares saying that they are more flexible and can earn you just as much as IPs with less hassle. but apart from their advise, Jan Somers books and other information gathered IPs are still my favoured idea for investing money. or because of my circumstances (salary) should i take these advisers advice and invest in shares.
so if anyone can offer any advice what so ever please do so, it will be much appreicatated. thanks for taking the time to read this far RYANO!
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