Buying a property outright??

Question

I live in the UK and have a capital of just over £100k (which I believe is about $250.000)...
Would I be able to buy a property (let's say a 2 bedrooms house) just outside Melbourne without having to borrow money from a bank?
Would you recommend it?
Thanks for your opinions...

Answer 1

Personally I would never pay off my house in entirety. It just doesnt make sense. If you have a loan with a bank for say 6%, but you can take the 250k, that you have now and can make 9-11% return then you are still up on the game. It makes more sense to make money with the money instead of leaving it wrapped up in a building. Anything else I can help you will contact me. Thanks

Joe Bauer
Vice President
Mortgage Services
203-729-8900
[e-mail]

Answer 2

This is a great question, and the answer all depends on your goals. What you should do is figure out which "vehicle" will return you the best rate for your money. Find out at what rate the property value in Melbourne appreciates and compare this to other investments. If your home is only appreciating at 4% per year, you may want to finance as much as you can and put your cash into another investment that will return you more than what the property does, make sense?

Answer 3

I foyu can purchase a hom flat out...congrats...

I'd recommend putting down 25% and just putting the rest in an index ETF. The interest rate on your mortgage should be very low... When you have the ability to use leverage in real estate, you should take advantage of. You could also put 50% down on two houses and rent out the other one for some extra income...

Answer 4

you bet! No mortgage payment for the rest of your life. If you didineed some of the money you could always take out a small equity loan, or just enjoy the benfits of owning outright. Pay your taxes/insurance and take a deep breath.