Steve Taylor

What if I invest in property and then lose my Job?

I have lately had clients wanting to take advantage of the rising Brisbane residential property market, but they are hesitant in case they invest in property then lose their job.

It is a bit like not crossing the road in case you get run over by a bus.

Should there only be a slight chance of losing your job, it is folly to miss the opportunity of building a residential property portfolio in this buyers’ market.

Each individual client has different aims and financial ability, so I organise their lending accordingly, and in all such situations, create a financial buffer or “shock absorber”.

This can be as simple as making an extra repayment bi monthly i.e. in one year the client would have created a six-month “shock absorber”.


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Another method, if using equity, is to borrow say an extra $30 and deposit this in an offset savings account. This would cover 12 months unemployment on a $500k loan. The borrowing costs are nil as it is offset against the loan account.

If one is to-purchase-an-investment-property/”>using equity in their home and buying an investment property with an interest only facility, I would encourage them to accelerate the home loan repayments to create a “shock absorber”.

Do not let the possibility of job loss stop you from investing in property, saving tax and creating wealth.

On the Property Clock, Sydney & Melbourne are at 12.05, whilst Brisbane is at 6.35!

Interested in enquiring about investing in property and would like to know ‘how it works’? Please contact our office to schedule a free, no obligation consultation and find out if our service is suitable to your needs.

Steve Taylor

At the helm of Steve Taylor & Partners, Steve Taylor has been delivering expert advice and product knowledge to clients for over 30 years. Steve Taylor & Partners provide individuals, couples and families with the right strategies to create wealth and change their lives with solid bricks and mortar.


DISCLAIMER

Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed.

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