Wednesday, May 15, 2013

Investing in property

Right back at the start of my journey I always talked about investing in property, this was my eventual aim. Recently, with my divorce, I felt unsure about whether I would be able to invest in property or not. On paper my income looks pretty bad and I had always thought that I would be able to get a loan because my then husband had a job and that's how I would do it.

WIth the divorce, obviously his income was no longer available.

This week I saw a broker. I have been playing around online with mortgage calculators and it looked like I would be able to borrow on my own after all. Not as much as I wanted and not for a house where I wanted, but an investment property in an ideal area is doable.

I am pretty excited. I like property because it is a more passive form of income, it is something I plan to hold for the long term and it is solid. I can see it. I can make improvements to it.

The properties I have been looking at already have tenants and the rent will cover the mortgage and all related expenses. Depending on the interest rate I get, the price I actually purchase at and agent fees (property manager), it should be positively geared right away.

I am using some of the money from my property settlement with my ex for it. I have plans for the rest of  money and was hoping I would not need to use a lot of it to get one of the properties I have been looking at, and I don't.

This is a way for me to invest in mine and my daughters future without it really impacting much on our lives, without a whole lot of effort from me, but still proved a return and stability.

Do you invest in property? What are your thoughts?

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