Hello everyone, I've only just stumbled upon this forum and I must say the community here seem to be very supportive and active. I started investing in properties about 10 years ago in Brisbane. With fantastic advice from experienced investors, my own research and a bit of luck - I'm in a position now in my early 30s where I own one IP with no liabilities and looking to buy 2nd one outright in Brisbane with no loan. Unfortunately I can't dedicate enough time to IPs so hoping this forum will be informative and educational for my future plans and management of IPs. Cheers Andy
Hi Andy, Any reason why you're so debt averse? Could have bought a lot more properties. Glad you found us in any case.
@Akw - welcome! What's the reason you don't want a loan? There will be no tax deductibility with an outright purchase. I personally would maximise opportunity by borrowing up to 88% LVR (of course within the given risk profile). Say your property is worth $300k, 88% would be 264k, (less LMI). This should give you enough funds to invest. So if you take 12% for deposits (88% LVR) and 5% costs, you can purchase circa $1.5m of real estate and hence maximise exposure and opportunity. Of course these are hypothetical numbers. Depends on what your property is worth This will come down to your affordability / servicing.
Thanks D.T. and Ms Ali, It's purely due to my family circumstances at the moment. I have gone back to medical school as a student, we have 2 dependants (twin boys, 4yrs) and my wife's work has only recently become very unstable - may be going part-time very soon. We are also renting in Sydney so our ability to burrow enough and repay is limited at the moment. Aim is definitely to invest in more but only after I graduate in 2yrs.
Hi Andy. Congratulations and welcome to the forum. You will find a very valuable resource for all things property related. It is great that you have been able to pay off your IP and also that you have enough to buy another outright. Although you many find that not buying outright may also be beneficial. Leveraging can be an important mechanism in investing. It can allow you to grow faster, further and can also provide substancial tax benefits in your quest. Obviously your individual goals differ from everyone so it's important to surround yourself with a great team of professionals to help guide you along. Many great brokers, accountants and lawyers regularly post here in the finance and tax threads. Those threads are a great place to start building your team. Good luck.
A fair bit on other un-property related topics as well- eg sports, psychology, relationships, (infamous) Donald trump, etc...a while back even half the forum was hitting on a certain member- havnt seen her since.lol
True ...true. ...there is also a prostitution thread now..so we have all bases covered... (no pun intended)
Hey Andy, Question: What's safer? 1) Buy a $400k property outright or; 2) Buy a $400k property with a 50% deposit, and leave the other $200k in an offset account? Your repayments would be the same: $0. Your access to cash would not. Food for thought.
Welcome to the Forum whereby there is a wealth of knowledge, experience and capability in the investment space...augment learnings on the forum with some good investment books