Young investor after a few answers!

[bnicklin]

Hey guys, My name is brad I'm 25 an just bought my first house for 335,000, I have bought in kalgoorlie an it's currently getting rented out for 500 a week. I'm kicking the tennants out an moving in with a heaps of mates. I have a couple questions.

1- Should I buy another house next year sometime. Prob around 300k.
2. Pay off the house as quick as possible then invest?

I'm extremely new to this. But I am keen to build a huge portfolio, I have just joined up an finding this fourm awesome so far. Cheers for any help

 

[Aaron_C]

How was your loan set-up? Rather than paying off your loan's principal - it's best to put all your savings into an offset account, so next time if you want to convert your house into an investment property, you still have all your interest deductions. Do you have an offset account?

 

[bnicklin]

Yeh mate. Have anz offset account. I pretty much did what the broker told me to do. Haha. I really don't under stand to much. There's a reason I'm a miner. Not a banker. thanks for your help. Starting to get my head around things

 

[Aaron_C]

That's good then. Keep it up!

 

[bnicklin]

I make enough to buy another house an have it rented out. Or do I double my repayments pay it off in ten years an buy another house. Or smash this house out in 4 years. An then buy?

 

[Aaron_C]

I'm really not sure what you should do next Brad. You seem to earn good money so affordability isn't a problem. What you have to focus on is making sure that you pick the right property to buy. Just put all your money into the offset account and wait for the right opportunity to present itself. Don't rush just for the sake of it - everything must be worth your while.

 

[bnicklin]

I'm really not sure what you should do next Brad. You seem to earn good money so affordability isn't a problem. What you have to focus on is making sure that you pick the right property to buy. Just put all your money into the offset account and wait for the right opportunity to present itself. Don't rush just for the sake of it - everything must be worth your while.

Cheers man, Yeh the house I just bought was rushed. But a hell of a deal! Sick of paying rent in kalgoorlie. So thought I will just buy an rent it to my mates. 150 a week for a room. It well than more covers my morgage. Very very new to this, I'm a floor an wall tiler by trade so bathroom renos an kitchen renos are right up my ally. I would prOb buy back home. Somewhere in Adelaide. Somewhere I know well. Well keep an eye on things an see what happens.