Thread: Need advice...about to take the plunge.

Hi, I have always been interested in property and have recently inherited a property which is paid off. I am now after some advice as my Husband and I are keen to start buying another investment property (perhaps even more than one). Our details: PPOR valued approx $350,000, we owe $260,000 Inherited investment valued approx $325,000 (returns $450 p/f.n) Also $40,000 cash Combined income approx $1200 net per fortnight (I have just returned to...

My first bit of advice is to forget about tax benefits. Especially at your income level when you are paying virtually no tax. The big question I would have before giving you any advice is - will your income levels increase over time? If not then my suggestion is to pay off you PPOR loan and use the remainder as a deposit on a neutrally geared house/apartment. If you expect that your income levels will increase then you can be more aggressive....

Quote: Originally Posted by Rixter Buy good quality well located property as fast and as quickly as you can reasonably afford and never ever sell by holding for the long term. That's a good point about the speed of acquisition, as it gives you more time for compounding growth. Picking the right properties will mean your equity levels rise faster and you can leverage off it sooner. I think that's why good property selection is so...

The possibility exists to move into the inherited property if suitable, therefore making your PPOR into an IP and the loan tax deductible. But quality of life is important too, so I only suggest this if you would be happy in the other house. Marg

Congratulations on wanting to start down the property road to riches. There is no catch to becoming wealthy. You just need to have courage to take the first step by jumping in. If you really want to become wealthy its rather simple - Buy good quality well located property as fast and as quickly as you can reasonably afford and never ever sell by holding for the long term. I hope this helps.

Quote: Originally Posted by aussierogue The big question I would have before giving you any advice is - will your income levels increase over time? If not then my suggestion is to pay off you PPOR loan and use the remainder as a deposit on a neutrally geared house/apartment. Cheers Aussie I don't understand your reasoning? Do you mean sell the inherited property and pay the PPOR loan? If not, then borrowing off that property and paying...

marg4000's advice is, as always, good. Like she says, if it's possible then fantastic, however if it would come at the cost of personal happiness then you'd need to think hard about it. The low income is a bit of a concern - in fact, I'm impressed you can live off $600/week with two kids! Have you already deducted mortgage repayments from this amount? Otherwise, I think you're in a pretty good position to make the most...