Property investment strategy

[ash_1050]

Hypothetical scenario. Say you get a large windfall of a million bucks* which you would like to tip into property and the average property price is 500k*.

Out of this you would like to ideally buy your own place for cash rather than a mortgage as well as at least one investment property which you're able to take out a mortgage with 20% down and the rent will cover the repayments.

What's the best way to make full use of the opportunity?

*figures are rounded for the sake of easy maths

 

[Duritz]

Hypothetical scenario. Say you get a large windfall of a million bucks* which you would like to tip into property and the average property price is 500k*.

Out of this you would like to ideally buy your own place for cash rather than a mortgage as well as at least one investment property which you're able to take out a mortgage with 20% down and the rent will cover the repayments.

What's the best way to make full use of the opportunity?

*figures are rounded for the sake of easy maths

The rent covers the mortgage? Buy ten investment properties at 500k each, with 20% down on each, and rent for your own property.

You've got $10m worth of property and you're paying nothing for them in interest. In ten years they "should" be worth $20m and you've got $11m equity.