Advice for a young man starting out.

Hi Team

I have considered going to a BA or getting advise from one of these 'property experts' and paying thousands but I know there are great people on here that can give me some great advise.

My situation:

PPOR: current evaluation $740kloan amount $620k

Investment property 1. Current evaluation $400k loan amount $333k

I have $170k of savings, I am 27 and looking to accumulate for the next 10 or so years.

Any advise would be great. We live in Perth and I know the market is down at the moment but I still think there are some good buys around. Happy to look at other states. Would like buy and hold for the long term so we are looking for capital growth over positive cash flow.

 

Talk to your accountant & broker. May be worth paying down the home and debt recycling for next purchase.

As you call out Perth has been taking an absolute battering so make sure you check the valuations etc before you debt re-cycle. May be worth looking elsewhere for the purchase than Perth.

 

You really have to work out what you want to do and where.

To be honest, if your not paying land tax etc over there, I would be keeping some money ready so you could jump onto some good things in your own back yard, and you can probably buy something elsewhere in the mean time, you can still buy pretty good properties in the 400's in Bris but you will not be 10k from CBD.

I like inland regionals too, but they are within driving distance for me, no idea what WA has outside of Perth.

There is a lot of talk about timing things on this forum, many do not like to get in until they see things actually moving upward, or start of a boom.

My thinking is Perth is down, everyone knows it and even many here are down on Perth, but from where I stand, if I knew the area well and knew I could buy well and knew I could have the place tenanted, I would be there. You won't over pay, you will have choice and time, very nice way to be buying instead of competing IMO.

 

Congratulations on making an early start to your investment journey.

My observations are:
1. You are over-weight in personal debt on your non tax deductible PPOR
2. You need to invest at least some of that lazy cash you are sitting on
3. Since Perth is down you should at least consider investing out of state
4. You are overweight in property and cash and underweight in other asset classes like shares.

A visit to a good Financial Planner might be recommended.

 

Hiya

If you decide to invest again it could be worthwhile injecting some of that cash into the ppor loan and "reborrowing" as a new equity split.

Lender selection will be important for you if you're looking to accumulate aggressively over the next decade.

Cheers

Jamie

 

If Perth is down then that might be a better time to buy in a market that you know, as opposed to a market that is up...
Or not