Property Investment is Smart

Sounds like an obvious statement right? The reason I wanted to talk about Property Investment is because I have recently been given a lucky break, a very lucky break!

In the past few months I have had my house up for sale, eventually I had an offer close to what I wanted and I took a deposit from the interested party. Here in Australia, the period of 5 days following the sale of a house is classed as a 'cooling off' period. In this time the buyer will generally arrange pest and building inspections and get their finance organised from the relevant institution.

In my case, the buyer seemed to have difficulty with their finance - as they requested to extend the cooling off period and that initially made me a little nervous. Upon accepting their request for more time, towards the end of the extended period - the buyer pulled out of the deal.

While initially disappointed, I looked upon the situation as a 'stroke of fortune' - I rang my mortgage broker and began to look over the figures to see if turning the property into an investment vehicle was possible.

I had originally ruled this out, as I already owned an investment property and further extending the debt and mortgage level was a little daunting. However, upon looking over the figures and realising that even at 'interest only' levels - renting the property out only required a small injection of cash each week to keep things ticking over.

So we all know property investment is smart; but remember not to be too scared of debt and use it as your vehicle to financial success. I took what could have been a frustrating situation
and used it as a 'last chance' opportunity to setup an additional property investment strategy.