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Advice Needed - What to do next?

Discussion in 'General Property Chat' started by Cash Flows, 31st May, 2016.

  1. Cash Flows

    Cash Flows Member

    Joined:
    18th Jun, 2015
    Posts:
    19
    Location:
    Gold Coast
    Hi All!

    So it's been a while since I last posted and I have come here looking for some guidance/advice on my current situation on what my next move could be. Summary;

    Property 1 - Gold Coast Unit
    Purchase 2012 $185k
    Current Value $250k
    Rent $265 per week
    Extracted $45k equity loan from this and have not used funds yet

    Property 2 - Toowoomba House
    Purchase 2014 $215k
    Current Value $215k with loan of $208k
    Currently vacant looking for tenant
    Rent will drop from $265 to $250 per week.. If I am lucky

    PPOR - Gold Coast
    Purchase 2015 $295k
    Current Value $340k - Loan $240K

    So I am currently having some issues with the Toowoomba IP given the high vacancy rate and some previous tenant issues that have forced me to re paint the house and possibly have to sand and re-polish the floorboards. Also, the street is in a housing commission area and has had some bad press lately which is not helping at all.

    I am trying to take the next step to purchase another IP but I am also contemplating selling the Toowoomab IP at a loss given the headaches it has caused me.

    What would others in my situation do? Has anyone sold at a loss just to get rid of a property that hasn't performed or is just giving you constant problems?

    My end goal is to have $50k per annum in passive income from IP's and I know having 2 properties aint going to cut it so I want to know what I should be doing from here...

    Thanks i advance for reading and hope to hear back from you all soon :)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,942
    Location:
    Sydney
    Whats your serviceability like?
     
  3. Cash Flows

    Cash Flows Member

    Joined:
    18th Jun, 2015
    Posts:
    19
    Location:
    Gold Coast
    I haven't checked since my PPOR loan last year...

    I was approved for $350k last year and only purchased $295k and my income has gone up approx $5k pa since then...

    Should this be my first step in determining what to do next?
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,942
    Location:
    Sydney
    Yes you should check this as if you can't borrow any more money your plans may change.