Hi all,
As a newbie to the PI scene, i plunged in to the market in April, buying my first (of hopefully many) investment property, a little 2 bed house in Hamilton which is neutrally geared. I was stoked to finally be in the market and on my path to riches. Problem now is what to do next...
I have saved another chunk of money (~15k) and want to re-finance my place to get another one, but am now wondering whether i am better off putting in a lump sum payment off my existing loan and focussing on getting it paid off ASAP. Im only 26 - should i take on more debt and keep my LVR high? Loan is only 200k at the moment. My place has appreciated by ~25k since i brought it in April, so i have a little equity to work with now. My basic 10 year plan is to accumulate around 5-6 cheapie rentals that are pretty much cash flow neutral, then when i finish my big OE and am back in NZ (~6 years time) I will do them up a bit and sell so that i can free up some cash to get into some property developing.
Im sure theres experienced people out there who can offer some advice to a newbie like myself on the best stategy and way forward. What would you have done different if you could go back in time?
Open to all comments/criticisms...
Thanks,
Matt
As a newbie to the PI scene, i plunged in to the market in April, buying my first (of hopefully many) investment property, a little 2 bed house in Hamilton which is neutrally geared. I was stoked to finally be in the market and on my path to riches. Problem now is what to do next...
I have saved another chunk of money (~15k) and want to re-finance my place to get another one, but am now wondering whether i am better off putting in a lump sum payment off my existing loan and focussing on getting it paid off ASAP. Im only 26 - should i take on more debt and keep my LVR high? Loan is only 200k at the moment. My place has appreciated by ~25k since i brought it in April, so i have a little equity to work with now. My basic 10 year plan is to accumulate around 5-6 cheapie rentals that are pretty much cash flow neutral, then when i finish my big OE and am back in NZ (~6 years time) I will do them up a bit and sell so that i can free up some cash to get into some property developing.
Im sure theres experienced people out there who can offer some advice to a newbie like myself on the best stategy and way forward. What would you have done different if you could go back in time?
Open to all comments/criticisms...
Thanks,
Matt
Comment