This week I am referencing a great article and a video from Tim Russell. Full disclosure, Tim is the Mortgage broker from Sydney I most commonly
He hits a couple of nails on the head for his Sydney clients and reminds me of discussions I have had with a few people recently.
Out of this came some advice I had for a Brisbane client recently who simply wanted to buy an investment property so that she could sell it, once it doubled in value, in order to pay down her own home and be debt-free much faster than using savings alone.
You will enjoy this one. The numbers are particularly relevant to what we are getting for clients buying in Brisbane right now – which is humming!!! … I must say, you beauty!
The first scenario was a couple who bought their family home about 10 years ago, have been chipping away at their mortgage, built up a good chunk of equity and wanted to know what would be the better move – to continue paying down their home loan or to use some of their equity and purchase an investment property.
The fear that they had was they didn’t want to get into further debt as it would bring them further away from their goal of being debt-free.
The second scenario was a couple who live in the Lower North Shore of Sydney, have saved for a deposit but found out that what they saved was nowhere near hitting the mark of them being in a position to obtain a similar property to what they were currently renting.
These guys wanted to know, is it better to just keep saving? Should they relocate to a less expensive area? Or should they look to purchase an investment property at a lower price point?
In the video below, I’ll walk you through the hard numbers of each scenario and let you know the outcome that each client ended up going for.
I look forward to your feedback and questions on this one.