Hi there, I am 45, have a $175 k mortgage on our home property valued at $450k. I earn $75-80k. I am trying to figure the best way to get ahead. The bank will lend us up to $350k for an investment property. Currently i am thinking conservatively; and buying a property that would likely be marginally negatively geared but if we hold eventually the renters will pay off the IP mortgage. Ideally I would like to buy unrenovated, add value and purchase more. Any advice, beyond "pay off your non tax- deductible home mortage". The ultimate goal would to work p/t in my current role, and manage the properties fro passive income. Cheers.
Use the equity from your PPOR as deposit and get the IP you wish to buy (in your range). Don't pay off your non tax-deductible home mortgage. Make sure all loans are IO Instead park it in offset (get one if you dont have) account Look for positively geared property if you want to keep buying more Add value to the IP, revalue and use the equity to purchase another (if you secure another loan)
You have about 180k in usable equity in your PPOR. So that plus the 350k gives you around 500k to spend. So spend some time researching suburbs around that price range. Give yourself a timeframe in which you would like to buy and stick to it. That way you don't end up trying to find the "perfect" property when plenty of good quality solid investment properties pass you by. Just remember this is only an investment. Your not living there, try and detach emotions from the desicion as much as possible (I know I struggled with this but in the end with outside help and perspective I made a completely financial based decision on a property I didnt personally like that much) How many properties are you looking to obtain and over what time frame and how much risk are you willing to take? That will determine how you go about achieving your goals.
