My next movement at 25 years old

Number of properties is not as important as the value in/quality of the of properties you have. Don't get too hung up on the number. It has easily led many astray.

 

Haha perfect! You'll have to tell me about your journey so far sometime would love to hear it!

 

Thank you good point made!

 

You probably should read some of the other posts regarding post-APRA financing. The good old days of using equity redraws with further interest only loans and changed serviceability requirements are going to be challenging. You may want to focus on building up cash reserves or focus on paying down debt on one of your existing properties. Unless you get significant growth in the next few years or take on active strategies (e.g. development), all that will happen is that you will end up stripping out equity from your current properties and sprinkling it over the next purchases with perhaps only a little equity in each. It will only take a minor hiccup like interest rate rise, I/O converting to P&I, the market flattens out for the next 5 years or more (yes it has happened, or other personal matter, that can make it go awry. You may also want to get your own PPOR. Not saying you shouldn't be aggressive but genuinely consider the options and other risk factors that are looming.

 

Thank you, will definitely take that on board, was kinda hoping APRA would ease off a little in the up coming years.

 

Hi frank!

Very very similar situation to you, first IP in Brookfield (close to kurunjang) and my ppor is in Caroline springs so know these areas very well... recently sold Brookfield for a fantastic result to upgrade my ppor in caroline springs which will now become my IP buy doing thing bringing down non deductible debt On my new ppor very low

Think we we’re both lucky to buy when we did good luck in the future

 

Fantastic to hear, cool that your so local and know the area, When PC has a next meet up in Melb we should go, would be my first time!

 

Mine also! Might see you around

 

Will you be doing the groundwork interstate? Or if you are time poor with work to even visit properties interstate will you be using a buyers agent/advocate?
Im in a similiar position to you with 2 IP in melbourne west as well and looking to diversify

 

Awesome to hear! I think buyers agents are great theres alot of good feedback from what ive read, personally have never used them, not saying i wouldnt its just i enjoy doing the research and groundwork, im lucky in that sense as i have most weekends off, in Feb i flew over to Brisbane for 3 days just to see the area in person, will be doing that again shortly

 

Hey,

How is your portfolio looking in 2020?

And were the properties cashflow positive when u bought them.

 

Hey!!

My current portfolio is worth around 1.6mil at the moment with a LVR of about 78%

4 properties in total 2 in West Melb and 2 in Southeast QLD

Yep my whole portfolio is running at about 5.7% yeild

 

That's awesome, hope it keeps growing!

Would you be kind enough to guide me on what you would do if you were 21 and had 620K borrowing power and a 100k deposit? That's the situation i'm in.

Would u buy a house with big land or a brand new property. And other tips would be highly appreciated. I'm from Melbourne too.

Thanks

 

Depends on your goals


Personally as I'm using property as a vehicle to wealth and want to accumulate as much as possible
If I was in your position I would buy something with bigger land, that has an average house on it but the land can be subdivided or developed to 2-3 units/townhouses. Would of purchased still in West Melb, with 620k borrowing you could find something very decent in Deer Park, Caroline Springs, Sunshine, Keilor Downs.

Congrats on saving 100k great work for a 21 year old, I only had 68k on my first purchase at 21 years old

And I wouldn't buy new, just my opinion


Feel free to msg me on Facebook or Insta Frank Matina

 

NOOOOOOOOOOOOOOOO!!!

 

My goal is the same, i wanna accumulate as much properties as i can.

Hopefully i find a decent house with big land which is cash flow positive.

That's what everyone's telling me not to buy new.

Thanks for your time and tips

 

Welcome, keep us updated, feel free to throw us some properties your looking at for a second opinion

 

For sure, i'll keep you updated.