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Pay off your home loan or buy another property or properties?

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Your Investment Property | 29 Aug 2013, 12:00 AM Agree 0
I think this is a really great question and worthy of exploring. Many of us get caught up with trying to pay our house off without giving consideration to what alternatives there might be to advance ourselves financially.
  • | 29 Aug 2013, 09:31 PM Agree 0
    At the moment, its just greed and fear driving this thing. Sadly, its a game for the blind. When you realise the con that is greed and fear then you realises that the infinite growth strategy that every one relies on is flawed, then its cutting through the matrix.
  • | 29 Aug 2013, 09:32 PM Agree 0
    Get out of debt is my advice.
  • Bluestoneletts | 11 Sep 2013, 12:55 AM Agree 0
    i always thought about this topic, thanks i have a more clear idea now...
  • Garry Harvey | 21 Oct 2013, 05:06 PM Agree 0
    Thanks for the comments regarding this blog. The purpose of the blog was to put forward a strategy and explain the mechanics of how it works. What I love most about real estate as an investment vehicle is there are many options available and once you understand them you can make informed choices as to the best way forward. Form a view on what is right for you, put together a plan and implement it.
  • Neil Harvey | 21 Oct 2013, 06:10 PM Agree 0
    It is great to be a business partner with one's Son. He took a while to convince me that property is the way to go, and it sure is. Hope he discusses wrap loans for siblings at some stage
  • Ashley | 21 Oct 2013, 06:10 PM Agree 0
    Garry, great blog, this is a question I have been asking myself for the last 6 months or so, I'm 25, have had my investment unit for 3 years. The premise is valued at around $250k, rental income is $260/ week & I have $158k still on my mortgage. Am I better off at focusing on paying my first investment off & increasing my weekly repayments?, or should I be putting my savings away to get that second property a bit quicker?
  • Andrew | 10 Jan 2014, 02:19 PM Agree 0
    Pretty bad advice in the current climate in my opinion. In the 90s-early 200s sure this was okay. Are you still living in that time period?

    If I have a 600k house and it rents for 1200f/t but then get a new house of 900k. The repayments are of what could've been 600k on a new place would be about 2000f/t, how is that 600k not better off in a upgraded new place of 900k saving you 7%+ p.a.?

    The existing 600k place will barely break even with +rent -deduction, factor in todays real estate with housing barely appreciating, possibly dropping. What if the interest rates go up significantly? Housing will drop making your scenario even worth.

    tldr; it's not 1995 anymore.
  • 40K left | 24 Jan 2014, 10:10 PM Agree 0
    Remember this advice 15 years ago...
    pay it off peeps
  • raj | 19 Aug 2014, 06:16 PM Agree 0
    i bought the unit and i already paid off my home loan and my home loan account is closed,now i want to by house for me and i want to make this as investment property for tax purpose is it possible.
  • Bob | 09 Nov 2014, 01:44 PM Agree 0
    Its "highly" unlikely house price growth over the next decade plus will be anything like the last 15 years, the question becomes will price growth beat 5-9% that will be your mortgage over that period moving forward even factoring in negative gearing.

    All the indicators are house prices are somewhere near their peak and even the government is FINALLY taking about slowing this bubble, bit late to the party but better late than never.

    If you have 400K is cash, property is still looking ok as its likely to beat saving interest rates, but possibly not the best investment moving forward.
  • sonipat | 02 Mar 2016, 08:22 PM Agree 0
    Hello Dear,
    Should you use today's low rates to clear your mortgage.
    These calculations suggest you should borrow and invest, and maybe even go into in buy-to-let Prudence say the first consideration is to pay down debt.
  • Dez | 31 Mar 2016, 05:53 PM Agree 0
    Buy in the right location and you will definitely be better off then holding off from buying.
  • Loius | 06 Feb 2017, 06:58 PM Agree 0
    This works provided the price goes up forever.
  • TM | 20 Oct 2018, 11:14 AM Agree 0
    Over the last 4 years, my house has dropped in price and the loan is now the same as the house value - no equity. My partner and I wondering whether in the current market (houses are not appreciating at all in Perth), do we sell one of our houses and take the loss and focus on paying down the mortgage on the other house or do we hold onto both houses?
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