Methods on how I can invest in the coming years?

Hi guys,

Was hoping that some of you guys could share your wisdom with me and provide me with some investment strategy options that I could consider in the near future.

The end result that I'm aiming for is positive cash flow and more capital.

Just a quick summary about me.
Currently 24, got my house at 23 and have about 260k owing to the bank. House is worth 370-390k right now. House is a 700sqm block, 3x1, 12km from CBD.
I used mt FOHG on the property to get free stamp duty. Will be renting it out within the next few weeks, I have a tenant ready to go and it'll be going for 300 per week and I'll be doing this through an agent. (Negative gesring, will have to fork out approx $80-$100 every fortnight to meet minimum repayment for my P+I loan).

I'm currently working full time with an income of 80k per year. Moving back home to live with parents. My girlfriend will be buying her first house in the next year or two so will be moving in with her then.

I was thinking by a year or twos time if everything goes smoothly and I don't have any issues with tenants, I will maybe have saved up for another deposit on a house and I could also purchase another one and perhaps use the equity of my current house to purchase a third one depending on how things go.

I have set a goal to have at least one house paid off by the time I'm 30 and have 3 investment properties in total.

Apologies in advance as I'm still new to this.

Your input is much appreciated!

 

What's that got to do with anything? Take out landlords insurance.

What do you want to do that for? All that cash sitting in a house with no leverage being applied.

Eventually every property you buy becomes cash flow positive if you hold for long enough (typically 7-10yrs).
Congrats on your efforts so far at such a young age. You need more help with setting financial goals.

 

Firstly, congrats, I didn't start my journey until I was 27

Is it close to your parents' house? If so, consider doing it yourself. I think you learn more that way and save a good chunk of money.
I manage my two in NSW myself.

You might still be negatively gearing (especially if you use a PM), but just make sure that you understand it correctly (you might do): You can't count principal repayments as a cost, so you'll have to do your calculations on interest only.

 

Theres no end goal in your plan. Even something simple like $x passive income by 50 wohld be good.

 

What I meant was if everything goes smoothly in i'm hoping that there will be no major repairs required on the house since it was built in 1989. The house is in good condition in my opinion compared to other houses in the area.

I just want a house paid off for a peace of mind that I'll have a house at the end of the day ifi lose my job for whatever reason as I'm only on a contract (quite difficult to get permanent in government).

It's less than a 5 minute drive from my parents. I have considered doing it myself but I was thinking of doing that in a year or twos time after seeing how the PM does things and after doing some research on how to manage a property (still new to this).
Just got a rough online calculator. I'll be in between the lines of negative/positive gearing if i dont include my principal repayment in the calculation.

I was hoping to get 50k passive income by the time in 45, 20 years. Not sure if this is a realistic goal or not but my aim is to get to 50k passive income for now.

 

what area is for a 700sqm block valued at 370-390k and only 12km away from CBD?

 

Perth? Adelaide?

 

In Perth, somewhere south east like Langford.

 

Perth, NOR.

beechboro, ballajura

 

Welcome kbargz, to get your thoughts started:
1) as mentioned above- more specific goal setting (and 1/5/20 yr goals) and reverse engineer what you need to do to (actions) achieve these
2) speak to an investment savvy broker re your serviceability
3) research (demographics, state and local economies) before asset selection ("telescope before the microscope")

 

Fifty k is quite achievable per month in twenty years .
Just keep at it and do not pause or sell up your portfolio