I've read quite a few posts with people asking/advising to have a clear financial strategy. I was wondering if someone could share some of the Strategies currently being used. How individuals go onto build a property portfolio based on the equity and/or on a single meager income. Do they over stretch and over borrow from Banks or are there smarter ways of going about it?
To give you a background, we are a working couple with a decent combined income and stay in our own house. Have a chunk in savings and a recent reevaluation of house revealed an 30% appreciation. So have a decent chunk in equity. With intentions to buy our first IP, had a chat with Banks and easily qualify for a property around 650K. During the meeting with bank they also mentioned about how Loan exceeding 80% LVR attract higher fees, LMI etc etc. Wasn't clear on that bit. Hearing that it got me thinking, how do other individuals do it. Have read individuals who started with a nothing or on a meager single income but ended up with a good property portfolio.
Pretty sure many individual may have had the same query or new budding investors (like myself) still wondering. Was hoping if someone could provided some directions and cues on it.
To give you a background, we are a working couple with a decent combined income and stay in our own house. Have a chunk in savings and a recent reevaluation of house revealed an 30% appreciation. So have a decent chunk in equity. With intentions to buy our first IP, had a chat with Banks and easily qualify for a property around 650K. During the meeting with bank they also mentioned about how Loan exceeding 80% LVR attract higher fees, LMI etc etc. Wasn't clear on that bit. Hearing that it got me thinking, how do other individuals do it. Have read individuals who started with a nothing or on a meager single income but ended up with a good property portfolio.
Pretty sure many individual may have had the same query or new budding investors (like myself) still wondering. Was hoping if someone could provided some directions and cues on it.