Hi, Looking for some advice on our next move in the property game, so far our position is 24 year old couple living in our 2 bedroom unit we bought for $385,000 last year and is worth about $500,000 now with $350,000 owing, combined income of roughly 130k and no dependants, thinking maybe a 1 bedroom apartment in the Essendon area at 300k but not sure, happy to renovate as we enjoy it and I am on the tools for a living, thanks in advance
That value jump seems extreme.. If you've actually managed to achieve 29% growth in 12 months on a unit (which don't seem to be performing that well at the moment due to the huge construction boom in all of the east coast majors)... Do that again? That's a cracking return, so assuming you didn't just get lucky and you applied some sort of strategy to buying that property, do it again!
You have probably overestimated the capital gains on the apartment, assuming that you have not renovated it. If you did renovate it though, thats a pretty awesome gain! Whether you buy up another apartment really comes down to how large a repayment you are willing to make every month..... this may not be such a great time to be increasing your leverage drastically with interest rates probably on the way up sometime in 2018 or 2019
Should probably provide more back ground, we did get abit lucky, property was marketed as 1 bathroom when it actually had 2 and we snapped it up before many others had a chance to see it(paid 15k less than another unit in similar condition with only 1 bathroom we looked at a week earlier, have also renovated a fair amount, last month a unit in simmiliar condition to ours sold for $530k
