Home – New Forums Starting your journey Instant consulting cash, property, vs getting long term passion/business up.. Reply To: Instant consulting cash, property, vs getting long term passion/business up..

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Hi Cisco,

This topic really touches on financial advice so I am reserved about responding with any advice one way or the other. Here are some things to consider when you weigh up your options and I would recommend speaking with someone qualified to give financial advice. (Not a financial planner just telling you to invest in a fund they receive good kickbacks from).

Regarding Property
Where are interest rates currently sitting?
What impact will rising interest rates have on property prices?
What impact will a falling AUD have on property prices?
What interest rate can you handle paying in worst case scenario?
Are you willing to keep funds locked up in property should property stagnate or fall?
Do you have excess cashflow you need to invest or are you wanting to build cashflow?

Regarding Business
Will living in your parents place speed up your business progression?
Are you confident your business will return more than an investment property over the next 5-10 years?
Can you always return to your IT consultancy work?
Will focusing on the business alone reduce the expected time before profit period?
Can you format your business so contractors are used to reduce some of the time needed by you to produce the product/service?

There are many other considerations but this should get your mind working on a risk assessment. Property is a great investment as it increases existing wealth over time. Cashflow wise, the more you withdraw from the property, the more your interest repayments are. You probably already know the whole cashflow versus capital adage.