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Discussion in 'Introductions' started by Glenmore, 8th Dec, 2015.

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  1. Glenmore

    Glenmore New Member

    Joined:
    30th Nov, 2015
    Posts:
    4
    Location:
    Victoria
    Hi everyone,

    Just here to learn more and can't teach as I have limited knowledge myself.

    A little bit about myself; I'm 38, married with 2 kids. Been working overseas for the past few years, but looking to return to Aus soon. Still have my PPOR (paid off), and recently purchased 2 IPs in VIC for my nest egg. Trying to gather the guts to borrow more as my LVR is at 15%. My wife and I like investing in property, but we have not been comfortable in borrowing so much. I suppose this is because we were brought up in a culture of saving money, but unfortunately not on how to invest it. Right now, I am trying to somehow find a balance in our borrowing but also be able to sleep at night.

    Hoping I can learn much more from everyone.
     
  2. monalisa

    monalisa Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    314
    Location:
    Sydney
    Hi @Hadi gunawan

    Welcome to the forum.

    You are in an excellent position with PPOR paid off.

    No need to be scared of debt, you will be fine as you can manage your risks - whether it be via insurances, selection of good property managers, calculating numbers on each property you buy to ensure you are comfortable with the cash flow etc.

    Just consider where you will be in 5, 10, 15, 20 years time - what advice would you give yourself?

    Good luck!
     
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  3. Glenmore

    Glenmore New Member

    Joined:
    30th Nov, 2015
    Posts:
    4
    Location:
    Victoria
    I'm pretty sure I would be telling myself to borrow more, but what I can't see is whether I'd be telling myself to go for cashflow or CG.

    Everything I've seen which is CF+ has been unattractive, I tend to lean more towards CG. I know I'm supposed to keep emotions out of it, but it is difficult not to. I'm wondering whether people keep a certain ratio of each?
     
  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Sounds like you have a nice big safety net under you and the family. Well done @Hadi gunawan.

    Regarding cashflow/capital growth, you will see the full spectrum of views here from die hards at either end and people who like to balance it out. Ultimately it comes down to a few things:
    • Your goals and their timeframe
    • Your income and current financial situation
    • What you're willing to do in terms of investing time and energy
    • Your risk profile
    • Which others lives are part of the decision
    Some investors around Property Chat have used positive cashflow strategies to free themselves from work decades early, others just for a bit of pocket money. And others still have focused on capital growth and still continue to work and accumulate properties into their 50s and beyond, having amassed a ridiculous amount of equity which will make for one serious retirement whenever they decide it's time to pull the plug.

    I bought for capital growth to make me deposits while I slept, (faster than saving) and went to work on some other income streams for cashflow.
     
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  5. Glenmore

    Glenmore New Member

    Joined:
    30th Nov, 2015
    Posts:
    4
    Location:
    Victoria
    Hi Steven,

    I totally agree with you regarding CG. Having experienced a boom overseas, I can attest to that.

    Unfortunately, with planning a big move. Employment and spending is a big question mark for me. With a lot of unknowns, I suppose I should be looking at CF.