We love answering questions about property investment.
Why? Because too many investors jump in and buy the wrong property! With the correct education and know how you can avoid the mistakes and traps others make and gain maximum returns.
This time I am going to answer one that a lot of people ask me time and time again …
How Much Do I Need To Invest?
When it comes to this question it depends on what your wants, needs and goals are, as everyone is different. But the short answer is you do not need any savings if you have equity in your home. I know I have answered this before but I was asked again three times this week!
Talking to a Mortgage broker, who understands borrowing for investments, they will be able to give you specific detail but you can generally get started with a 5% deposit. So on a $350K property you would need a deposit of $17,500 plus cost (stamp duty, Conveyance Solicitor fees, bank fees). So approximately $8K.
This can be part savings or all savings or all from your family home equity. Where you would be transferring the equity from your home which is a non tax deductible debt into an investment property that is a fully tax deductible debt. You would not be losing the equity – just transferring it so you would have two growth assets.
When Should I Invest?
Yesterday is the best answer because the sooner you start the sooner you will start gaining the growth. But seriously, with low rates you can lock in for 3 years with prices in selected locations at the bottom. NOW is the time!
Will I Have To Work Until I Am 70?
There is no doubt Joe Hockey, our Treasurer, has been talking about it. And this is not the first time. The facts are there is just too many Baby Boomers leaving the work force in the next 15 years that means there will more than likely be no pension due to the ratio of workers to people seeking Government assistance.
There is just not enough tax earnings for the Government to spread the money around. If you want to stop work earlier, or at all, then it is in your hands. Only you can do something about it.
There is many opportunities but only you can do it!