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Anonymous
Guest
From: Anonymous
Can anyone provide an opinion on when is the right time to buy your first IP?
I am currently paying off my first mortgage in a home that I live in. I have about $158K left to pay off, and I earn about $68K per year. My home is currently worth about $320K. I have read "Building Wealth through Investment Property" and was inspired to use the equity in my home to buy an IP.
However, today I saw a financial adviser who told me to basically forget about buying an IP until I have paid off my mortgage to around $50K - $100K. In fact, he said I shouldn't invest in any other assets (like shares or property) but just keep ploughing into my mortgage. TO borrow money to invest, particularly for an IP, would probably be negative gearing which he thinks would weaken my cash flow too much. THen he showed me the door and basically said to come back when I have more money.
Is this wise, or am I missing out on wealth building opportunities by continuing to wait? It will probably take me about 2 years to bring the mortgage down to around $100k.
A
Can anyone provide an opinion on when is the right time to buy your first IP?
I am currently paying off my first mortgage in a home that I live in. I have about $158K left to pay off, and I earn about $68K per year. My home is currently worth about $320K. I have read "Building Wealth through Investment Property" and was inspired to use the equity in my home to buy an IP.
However, today I saw a financial adviser who told me to basically forget about buying an IP until I have paid off my mortgage to around $50K - $100K. In fact, he said I shouldn't invest in any other assets (like shares or property) but just keep ploughing into my mortgage. TO borrow money to invest, particularly for an IP, would probably be negative gearing which he thinks would weaken my cash flow too much. THen he showed me the door and basically said to come back when I have more money.
Is this wise, or am I missing out on wealth building opportunities by continuing to wait? It will probably take me about 2 years to bring the mortgage down to around $100k.
A
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