How to change direction?!

Hello Property Chat Crew,

I have been following along for quite sometime and have picked up some awesome information and taken onboard as much of the handy hints and tips as I can!
My partner and I spend a lot of our time talking about real estate and get super excited about prospects but we can't seem to come to a solid conclusion on the next step?!
A quick summary of our current circumstances -
Combined income of $150k (I keep reading about people earning 250k each so this is depressing to write but we are putting in our best efforts to increase the numbers!)
Current mortgage of $380k - Bank valuation on the property $650k, (PPOR) Broker has advised borrowing capacity of 900k if keeping the apartment
$250k in savings
As we are not getting any younger we are wanting to set ourselves up for the future but feel our PPOR (a 1970s solid brick apartment 7km out of the Melbourne CBD) is going to turn into a money pit due to the lack of maintenance and willingness from other owners.
So I guess my question is how do we make a decision on how to project ourselves in the right direction of financial freedom?!

 

Calm down.

Financial freedom is not a concrete goal. Dont know how you can change direction if you arent headed anywhere in the first place. With those savings it doesnt sound like you have a plan.

eg 100k per year investment income at 55 and a ppor that costs 1m now, is a goal you can work backwards from.

Start with a concrete goal. Then how to get there. When you get excited about property is it from watching the block? You need to plan realistically, with steps you do in the next week, next month, etc not just talk about how great it would be to be property millionaires.

Ground yourself with a few basic books, a few projections in excel and a chat with a good mortgage broker about what portfolio is viable.

funny thing. Those high income couples who needed years of training before they make those incomes? Are far poorer than average wage people who start early, learn how to execute and let time do the work.

 

I can appreciate the sarcasm and I agree with what you are saying! Trying to reach goals that aren’t there are impossible! I guess the hard part is working out the realistic goal, the time frame and the steps to get there! We have some work to do!!

 

We clearly have a lot of work to do!! Procrastination has so far got us nowhere so judging from these two replies our number one objective is realistic goals!!! And some good financial advice!!

 

You need to understand what your thinking is about money and why you have the thinking you do.
That 250k savings probably didn't appear overnight. So why haven't you put that money to work? Because you think property and share markets are too high? Or you don't know enough about them? You don't like debt? You don't see how buying a property gets you to your goals?
The answers will give you a guide on what to work on. Probably a lot of boring reading.