Newbie - Looking for investment strategy advice

Discussion in 'Investment Strategy' started by LNVic, 13th Dec, 2016.

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  1. LNVic

    LNVic Member

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    VIC
    Have spoken to a few different people (including those adverts that pop up on Facebook) who have all given me different advice so I thought I’d see what the ‘collective guru’ of PC think!

    I’m 38 years old and worked for what was essentially a not for profit organization up until 3 years ago as well as making my ‘investments’ without much guidance so a little behind in my position!

    I have a $600K apartment (St Kilda East) owing $480K with $40K in an offset (4.02% I/O with banked rent of $2232/month) and a $330K NRAS (Alfredton, next to Ballarat, in a development/street of NRAS ) owing $285K (4.29% I/O with banked rent of $1010/month but I also get that nice $10K!).

    I have an income of $200K (3 year average; commission…) now and can currently manage to put $40K of savings in to the offset every year.

    Lifestyle: Single and renting (enjoy the flexibility and can’t afford/justify buying in my area) and looking to increase what I pay by $150/wk (so I’m not showering and eating in the same room).

    Not emotionally involved in any of the investments and my goal is to be financially secure/stable while living in a nice house in a great suburb within 5 years ($2M by then?!).

    Any advice? I feel like there is wasted potential... Do I need to drive an Uber on the weekends?! Thanks in advance.
     
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  2. samiam

    samiam Well-Known Member

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    Is your income 200k/year or 200k/3year? Work out your servicibility by brokers here?
     
  3. jimmy

    jimmy Well-Known Member

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    Well done on your goings so far @LNVic
    At this stage of the market i think there is no huge rush to get back into but when you are ready with a purchase/strategy that makes sense and you are comfortable with. Only you can decide how you go moving forward and that may be to take parts from peoples strategies or just copy one, theres no one size fits all! Good luck.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    If you're earning $200k/yr, and are single, rather than driving Uber why not try and save a bit more of what you currently earn?

    If you want a PPOR, saving as much cash as possible is going to be key assuming you won't be selling your IP's, or you'll end up with a huge non-deductible debt and at that kind of purchase price servicing will possibly be an issue.
     
  5. LNVic

    LNVic Member

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    $200K per year. Last 3 years; a $170K year, $240K year and a $200K year.
     
  6. Big Will

    Big Will Well-Known Member

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    PCers, the 200k remember is 'not for profit', if they spend it on wages then there is no profit :).

    In all seriousness I would be aiming for growth with such a large surplus of funds.

    CF helps you maintain your portfolio but growth makes you rich.

    Friend got his place in Melbourne to go from 420k -> 560k (Bank val) in 1 year, no CF+ would replicate this.
     
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  7. LNVic

    LNVic Member

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  8. Sackie

    Sackie Well-Known Member

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    Assuming you want 2mil net equity in 5 years (lets not even count the nice house in a great suburb you want) and assuming that's enough, you will need to get crackin and focus on assets for growth as much as your equity/serviceability allows. Probably very, very likely you will need to do at least some small 'add value' deals in some way to manufacture equity faster. For most people 2 mil equity in 5 years without a boom or adding value in some way is not very likely unless you already have a large base growing for you. The good news is you have a great income and some cash/equity to get started. You just need to know how to direct those resources now.
     
    Last edited: 13th Dec, 2016
    Big Will likes this.