Need help with what to do next..

hello all! I am prettty new to the forum.
I am 22 years old and I purchased my first investment last year which I put 20% on. I currently work 7 days and put all my money into my offset.
I’m not sure what to do next and would like some opinions...
1. I live at home and so was considering to purchase another IP while I have no major expenses.
2. Renovating by current IP and selling it, it is also possible to build 2 townhouses. However not sure how I feel about this with Melbourne’s current market.
3. Me and my parnter are also considering buying a business, something that’ll generate high cash return. My family owns several businesses and have always grown up wanting to own my own. We are currently looking at a cafe within a University.

We don’t mind working hard for the next 10 years of our life to give ourselves more financial freedom in the future.

Would appreciate all your suggestions!
Thank you

 

. Good idea.

Renovate to increase rental return - sure if the numbers work. Selling it? Bad idea - but I'm a fan of buy & never sell. Too much of your hard won equity is trashed by transaction costs when selling.

Depends where it is, but I'm supposing not the right time to be doing this.

My partner and I.

I'm not sure about the cafe but I am a fan of owning a business - go for it.

Great attitude. Allow for some time off - 7 days consistently will make you sick at some point. Congrats on the journey so far.

 

There's a good book out there on why you SHOULDN'T start a cafe. Essentially you're working to earn a wage. Nothing exceptional unless you're starting it from scratch and can flog it off
(I'm no expert)
Goodluck! You're going gangbusters already!

 

Thank you,I do love to travel so I always reward myself!

 

It’s tricky because some do so well and others go broke pretty quick! We’ve also checked out a few coin car washes but maintenance costs seem pretty high

 

and thank you!

 

1. Yep great idea if you can afford to invest early! You just cannot buy time back, and building wealth via property will take time.

2. If it's already zoned to allow building of townhouses then location shouldn't be too bad. How long have you held it for, and how much estimated profit would you be making after renovation cost + CGT & selling cost? If it's not difficult to hold you may want to consider holding it for longer as that's where the real profit is made in properties.

3. Great initiative in wanting to own a business of your own! I don't know enough about running a cafe business, but first I would suggest to clarify your Unique Selling Proposition i.e. what would make your cafe stand out from others and why would customers want to buy your coffee instead of others? If you can come up with a good USP (maybe it's extraordinary service, maybe it's something special for your customer..) then you're half way there

And well done in accomplishing what you've done so far at the age of 22!

Cheers,
David