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Discussion in 'Introductions' started by Rob Preece, 24th Aug, 2015.

  1. Rob Preece

    Rob Preece New Member

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    24th Aug, 2015
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    Location:
    NSW
    Hi all, new to this.
    After your ideas... If you were older and had about ten years of work left in you, what property investment strategy/plan do you think would work to help with retirement?
     
  2. Azazel

    Azazel Well-Known Member

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    18th Jun, 2015
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    Location:
    Brisbane
    Gday Rob,
    Depending on what assets I had, I would assume I would have at least enough for a deposit for 1-2 cheapies. Research, read books, decide on the outcome you want, develop a strategy. One example could be buy 1 house per year for 10 years, then start selling some off to pay down debt, live off the interest.
     
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  3. jrc

    jrc Well-Known Member

    Joined:
    20th Jun, 2015
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    76
    Location:
    Regional NSW
    Hi Rob, I'm in a similar position. One IP with about 40% LVR, one IP unencumbered jointly owned with a sibling, and a PPOR mortgaged 80% LVR.

    Our house was cross collateralised with the IP which was our former PPOR, sold the house and got rid of the cross collat and then bought another PPOR without cross collat.

    Due to various reasons i had only been working parttime for a few years and my wife had had to stop work. Resumed fulltime work a couple of months ago.

    What I'm looking at is borrowing on the IP and investing in a couple of cheaper properties returning 7% or so and putting money into offset on PPOR. and then in a couple of years doing the same again. Will be looking for additional income as well. That way I figure in 10 years, I will sell off one fully paid IP which will if necessary give us enough money for 5 years while the loans on the others are reducing. Then do the same. Also as income increases will be salary sacrificing to super.

    Also will in a couple of years look at a dual occupancy dwelling which will have high depreciation.
     
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  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    18th Jun, 2015
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    Location:
    Sydney & Gold Coast
    Depends on:

    • starting scenario (existing assets + income) and
    • retirement goal.

    Property might not be the best vehicle with a 10 year timeline and a "buy and hold" approach.

    If equity rich, a buy and reno or buy and develop strategy might work to manufacture more equity and avoid reliance on the market moving.

    Another idea might be to load up on properties early with plans to sell down in 10 years but this assumes some growth over that period of time.

    If equity poor, focusing on higher yielding properties may make sense (incl. NRAS).

    There's a bit of info you'd need to share for more specific input including your retirement goal and current financial position.

    If you have a $300k income and $1mil in the bank, things will be very different to if you're on $50k with $0 in the bank.
     
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  5. chylld

    chylld Well-Known Member

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    25th Jun, 2015
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    Location:
    Sydney
    Whatever your situation, good on you for getting into it! Better late than never :) or in this case, better wise and open-minded, rather than young and naïve.
     
  6. ellejay

    ellejay Well-Known Member

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    19th Jun, 2015
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    1,123
    Location:
    Kimberley and NZ
    Hey Rob, never too late! Talk your position through with one of the great brokers here specialising in investments. They can give you an idea of what you can borrow. The rest depends on your comfort level and preference. Ask lots of questions and consider all options.
     
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  7. WattleIdo

    WattleIdo renovating Premium Member

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    18th Jun, 2015
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    Location:
    Central West NSW
    Along the lines of something Steve said, I'd recommend buy, reno, hold. Depends on whether or not that appeals though.
    Whatever you do, don't over-do it and be careful if anyone encourages buying a lot quickly.
    Main thing is to make good choices. This depends a lot on how much you have to play with. If not much, choose areas with good yield and low vacancy rates. Don't be afraid of no frills old units in high demand areas.
     
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  8. Rob Preece

    Rob Preece New Member

    Joined:
    24th Aug, 2015
    Posts:
    2
    Location:
    NSW
    Existing home owe 58k worth 550-600k. Combined earnings 170k combined super about 350k. That's pretty much the set up.
     
  9. WattleIdo

    WattleIdo renovating Premium Member

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    Location:
    Central West NSW
    Looking rather rosey then. :) Take it easy though. Who knows what'll happen next. Something to renovate on a budget might be fun.
     
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  10. Azazel

    Azazel Well-Known Member

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    Location:
    Brisbane
    Good stuff. With that much equity, after doing plenty of research and deciding on a budget, consider using a 20% deposit, and see how you go. Avoid off the plan apartments - there's a reason the saying "safe as houses" is so popular ;)
     
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  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    18th Jun, 2015
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    Location:
    Canberra and Sydney
    Awesome base to start with - plenty of equity and strong borrowing capacity (based on the limited info anyway).

    If you've decided property is for you - then the general set up is to release equity against your current home to cover off the deposit/costs on IP purchases.

    Cheers

    Jamie
     
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