Did you know that almost three in four Australians only own one house but might actually be able to buy a second one? Why would this be so? Is it that there is extra finance required to fund a shortfall in rent against repayments, do they have a fear of a market crash or do they perhaps feel that paying off their home and debts before another purchase is a safe option.
According to Chris Gray, the host of Your Property Empire on the Sky News Business Channel, investing in residential property is a safe asset that does not normally bounce up and down in value. ’The interest you save from paying off your debt first is nothing compared to what you could make through a second property investment’, he says.
‘Rather than paying one dollar off your home loan, you might be better leveraging that dollar and buying five dollars of property which rises by more than you might be saving. And investing in a second property isn’t necessarily a big risk, especially if you already have existing equity behind you.’
In suburbs with a strong family demographic, some parents have been purchasing investment properties to ensure housing for their children within their suburb, or acting as guarantors or co-investors. It might be time to discover what your own options could be.
So, to arm yourself with more information or to discuss acquiring a home, refinance, car or other type of loan, give Peter Dall a call on 0414 583 233 or email him at: firstname.lastname@example.org