Friday, October 26, 2007

Reverting to type

You know how I'm debt free, etc? Well I can't stand it. I mean I'm saving absolutely truckloads (no really, it's obscene), but I don't feel like my money is working hard enough for me. Snap decision. Again. As only I can do.
I'm buying a couple of flats in Melbourne.
I've done the figures and I can still actually get very cheap one bedroom flats over there ($120k - $150k) which are renting at prices which would more than repay the mortgage... assuming I use the wad of cash I have from the sale of the last place to pay for about half of each of the flats. Or pay for one flat, really. But I have to have a small mortgage on each in order to get all the tax benefits.
There is all this talk Melbourne is going to take off the way Perth did just before I bought here. Let's hope so. So my tactic is to buy the cheapest liveable (decent floorspace) single bedroom/studio flats I can find, which are already renting at the highest available returns. With any luck I'll be able to do it in such a way that they are basically cost neutral, provided they are always rented.
I have a meeting with my mortgage broker tomorrow.
I bought my Maylands flat three days after deciding I wanted to buy property. Why do I do these things so quickly, when I decide to do them?
I hope this works.

1 comment:

Anonymous said...

Buy me a pony.

Lol L x