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My strategy

Discussion in 'General Property Chat' started by 1stepcloser, 23rd Jun, 2016.

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  1. 1stepcloser

    1stepcloser Member

    Joined:
    4th Jul, 2015
    Posts:
    22
    Location:
    Perth
    2 Million in property $8,000 per month in rent
    Broken down 1 Mill in Adelaide 3 house and 1 Mill in Perth 2 house
    Adelaide
    330k $320pw
    330k $330pw
    340k $350pw
    Perth
    500k $500pw
    500k $500pw


    Current position
    315k $310pw 250k debt **
    305k $340pw 267k debt
    503k $450pw 459k debt

    **tenants moving out next month so have advertised at 320pw
    PPOR 499k 450k debt (I only own have on this with a mate)

    I'm hoping for a 15g tax return goal pay both loans down to 250 then get properties appraised I think both have gone up 10k each since I last got them done.

    I'm thinking withdrawing a total of 70k of both then buying another one in Adelaide around the 320k mark.

    Then buy my mate out in a few years and rent my PPOR out as an investment.

    Any advice or ideas please let me know

    Thanks Matt
     
  2. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    Confused...Are these actuals, or targets?:confused:

    You list 5 properties at the top, then only 3 properties underneath with the values, rents and debts..what about the other two?
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,782
    Location:
    Perth WA
    A couple of things -
    A - the 50/50 PPOR may cause issues with finance, depending on servicing, as the bank will look at it as though the full debt is yours. May not be an issue, but will restrict lending later on if servicing is tight.
    B - make sure you get the new IP deposit loans structured correctly - don't just 'redraw' as this will create tax issues.
    C - make sure your portfolio is structured correctly now, as things get tighter servicing wise you'll be restricted so you'll want to be sure your with good lenders for increasing IO periods and product switches etc down the track. Also uncross any loans if necessary.

    You're well on your way, nice work :)
     
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  4. 1stepcloser

    1stepcloser Member

    Joined:
    4th Jul, 2015
    Posts:
    22
    Location:
    Perth
    Bayview the 3 with the debts next to them are the 3 I own already, other 2 are which I want to buy in the future.
     
  5. 1stepcloser

    1stepcloser Member

    Joined:
    4th Jul, 2015
    Posts:
    22
    Location:
    Perth
    Jess, I have heard this by a few people about a 50/50 PPOR my idea around this was.
    2 of my loans are with ANZ fixed for another 12 months (paying to much interest) but soon will have both these loans down to 80/20 LVR and i'll just tell them if they don't give me another loan will go se another bank :)

    That failing can wait and offer to buy friend out after perth market stops dropping and rent out my PPOR and go live somewhere cheaper.
     
    Jess Peletier likes this.
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,174
    Location:
    Gold Coast
    A strategy that could provide a more predictable outcome would be to Have a chat with Jess to map and model wants possible.

    Anz serviceability isn't the best


    TaROLF
     
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  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,782
    Location:
    Perth WA
    The bank you go see will make all the difference - as Rolf suggested, good to map out a plan so you know where you're at. In your situation speaking to the right lenders will have a significant impact on what you can and can't do and may allow you to buy out your mate when you want to, rather than when you have to.