Growing your portfolio
Question:

frugal-touse1

How do you get more finance to purchase more properties when in
our situation? We owe $58,000 on our home, which is valued at
$450,000, and we have a positively geared investment property ($70per week) valued at $150,000. Our newest investment property is valued at $265,000, and it is neutrally geared.

I’d like to know how we could get more properties under our belt?

We are both work full-time and have a great finance track record.

Regards – Karen

Answer:
Karen, it sounds like you are in the perfect position to continue
investing. You are both working full time and you have equity up
your sleeve, so you are ideally positioned to take advantage of the
current real estate market.
You have plenty of flexibility in terms of your LVR, and you have so
much equity in your own home. In terms of finance, there are many
options available to you, such as borrowing against the equity in your own home, or taking out a line of credit. The right finance solution for you depends on the leverage you have against your investment properties, your combined income, and the direction you want to take in terms of actual loan products.

I would recommend that you speak to an experienced finance broker
who specialises in dealing with investors, and ask them to set you up
with a five or ten year plan.

Published by Henry Sapiecha 27th August 2009

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