How can I consolidate my debt, save money and still buy my next property?

News
June 8, 2020

Right now, you need to be reviewing your current financial situation, looking for ways to reduce your monthly commitments and expenditure and, well, save money.

By doing this you are making room for larger purchases in life, like an investment property that can provide you with a return. Most Importantly, take advantage of the current cycle (given the state of the worlds affairs) to buy your next property.

One of the most simple ways to do this is by consolidating unsecured high interest rate debt like credit cards, car loans, and ‘buy now, pay later’ services into one monthly repayment. There are 2 ways to consolidate; fixing this into a low rate personal loan or consolidate this debt into your home loan by using a side by side facility that will not add years or additional interest onto your home loan, instead, save you hundreds of dollars a month in repayments.

By following these key steps below you can easily identify hundreds of dollars a month that could be used to finance your new investment property purchase:

Lets go right back to the start and review these key tasks to help you into a position to purchase your next property:

  • Use money management tool like Ramsey Property Wealth’s Wealth Deck which can help you identify savings in your everyday household expenditure like reducing your multiple TV subscriptions to 1, turning off Uber Eats and the likes, and also reviewing your existing credit card, car loan repayments, electricity, phone, healthcare, internet rates AND your current interest rate on your home loan. Combined, these make up a seemingly large deposit…

  • Use a comparison site like Ramsey Concierge to compare, reduce and review rates by getting comparison quotes and switching to a cheaper, more economical service or reducing removing the cost centre altogether.

  • Consider switching to interest only repayments for a short period of time (if you are in a position to do so), while this is not always advisable it can be a great strategy to save money by applying these savings to high rate debt.

  • Review your current home loan rates, a short 15 min call with one of the Ramsey Property Wealth Mortgage Advisors could potentially identify hundreds of dollars in monthly mortgage repayment savings when applied to your home loan. This alone could allow you to pay your home loan off 10 years faster and this service costs you absolutely nothing.

If you have applied these findings and are ready to buy your investment property but don’t know where or how to get started the Team at Ramsey Property Wealth can take you through our custom built Property Portfolio Plans, suited to your personal and financial situation and matched to your property goals.

Click the link below for a short 15 min discovery call today.

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Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.