I don't seem to have much spare money as it is now. How am I going to afford to buy an investment property?
If you have already made the commitment to pay for necessities first and luxuries last, then the only remaining stumbling block is more of a percieved problem than an actual problem. Too often, we think of an investment property in the same light as our first home. This being the case, we tend to see only the interest payment as creating an enormous burden. But your contribution to the interest bill, remember, is after the tenant and taxman have paid their share, and what's left may be as little as $80 in the first year - and it gets less over time as the rents increase. In addition, section 221D of the Taxation Act may help you to improve your initial cash flow though reduced PAYE tax instalments which means you don't have to wait up to two years for your tax refund.
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General