Starting out

[nu gen]

Hi, Excuse my inexperience and open question but I would like some reasurance with my plan to invest.

I have no investment properties as yet. I have a little bit of equity in my home($60-70k).
I have calculated that I could possibly borrow $150k IO as I would have an LVR just below 80% and a DSR just below 100%(assuming that will be the lenders oppinion).

I have read alot and would like a last piece of advise before I jump into an investment property. Have I prepared myself enough? Should I wait to build more equity?

I there any hidden pitfalls I may encounter? Either way, I will head down this path but would appreciate a little reassurance on the way.

Thanks

 

[Rolf Latham]

Its all a matter of emotion

Hi Nu gen

If you have 60 k accessible equity in your home and you have good income you could actually borrow as much as +_ 400 k.

How much investible equity you have available should not stop you from making an investment decision.

Indeed, what is far more important, can you service the loan you are taking out. If you have doubts when rates ries etc you can take out a little insurance by using a fixed rate loan etc.

Another important issue not related to equity is why invest at all in the current climate. Some say the market has done its dash, others say it has long to go. Who is right ? Given enough time, both are right.

Ta

Rolf

 

[brains]

hi nu gen

you're really close to where i live, if you want to have a chat some time re IPs, pm me.

wayne