It does depend on your age and the length of the loan.
If you buy a home for $300,000 and you need to borrow that much
and at present at a low rate of about 6% it is ok
You will be paying about $500 a week....
Now here is the catch...
Usually a home worth $300,000 will not get you a return of $500 a week rent..
great for negative gearing...but I would not do it..
It does depend on your age and if you have a deposit...
It's not something I would do at my age....
Select to expand quoteGypsyDrifter said..
It does depend on your age and the length of the loan.
If you buy a home for $300,000 and you need to borrow that much
and at present at a low rate of about 6% it is ok
You will be paying about $500 a week....
Now here is the catch...
Usually a home worth $300,000 will not get you a return of $500 a week rent..
great for negative gearing...but I would not do it..
It does depend on your age and if you have a deposit...
It's not something I would do at my age....
If you bought a 300k unit in Sydney a few years ago, in the right location you could rent it out for about $400 a week back then. The same unit would rent out for around $500 a week now. Unless something drastic happens the rent will be close to $600 a week in a few years time.
Interest payments on that mortgage have dropped to around $350 a week.
I have done OK (not millions, but OK) on both investments and a couple of properties.
I consider myself to have been lucky, I might just lose a truckload if I had to do it all over again.
I'm always afraid of aforementined bubble, and have disposed of a property on that basis recently.
Reason is: I do not see that the Chinese capital influx and immigration will make up for the ageing of our society.
I'll probably be proven wrong. A canucky friend was showing me about how this process has started in some of their provinces.
About investments: I have received incredibly good advice from a professional firm in the last 20-so years.
Was lucky there again, looking at some people around me. Perhaps consider doing the same - not sure.
Actually it's not the firm per se, but the advisor - getting the right one makes a world of difference.
Here's a 3rd option, which I've witnessed a few times in recent years: depending on your line of work, go get certifications.
Pick the right ones, then go all the way. I've seen couple of mates more than double their $$ with Cisco and Togaf certs - PM to a lesser extent.
Fair investments in time and money, and it's all BS to me, but have seen it work (and flop too).
'luck.
