Real Estate News
Is this the year to buy? This is the question on a lot of people's mind. If you read the paper and listen to the news then you will never probably buy, if you listen to common sense and trust your instict then you will have a better chance of building up assets.
For example, if you are thinking of working for the next 10 years and you know that your industry or job is pretty safe and there is not much risk in being out of work, would it be worth it to start investing your money and watch it grow? If you had no fear of investing and did not care if you lost money, where would you invest your cash?...... There is your answer! See common sense and your logic tells you that you would purchase a property with this criteria
- Growth area
- Stong rental area
- Low housing default
- Great location
If this does not make you money in 10 years, the whole of Australia is doomed and everyone has lost money in the property market. The secret is to not listen to anyone who does not know anything about the real estate market and if they do, then only listen with one ear.
You know what you would like to acheive, all you need to do is speak to a professional about what you would like to do i.e. Buy an investment property that will double in 10 years and will not burn a hole in your pocket! As long as you still work, you will be able to afford the difference in repayments and the tax deductions will take care of the rest- This is called gearing.... and best of all, your lifetyle does not change!!
Fixed rates are around 5.75% at the moment so if you did your numbers on this scenario
Purchase price - $450K
Deposit - 10%
Loan amount - $405,000
Interest rate - 5.75%
Loan repayments - $450 per week
Rent Income- $480 per week
Loss - Not much
Value in 10 years - $900K
I have always said, "It is up to your Boss to pay you a wage, it is up to you to look after yourself!"
If you would like to sit down with me and discuss this further, then let me know and I will show you how you can do it with your situation
Thanks and happy investing!
Scott Durrant
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