Hey guys, Long time reader first time poster. I am 27 and work in construction industry I am currently based in Melbourne for the next two years. I have no dependants and my income sits at 240-300 a year depending on overtime. I currently have two investment properties A house in Penrith worth 690 renting for 450 and a townhouse in pascoe vale Melbourne worth 550 renting for 350 Both a negatively geared but sustainable on my income. I am now looking at what to do next which will generate the most capital growth over the next couple of years, cash flow isn’t to much of an issue. Thanks Matt
Yeah I should be able to set myself up nicely in the next couple of years. I got into the market late and purchased both properties at the peak of each cycle so now I’m taking due diligence...
What are you doing with your spare income ? (Or are you dumping large amounts off the loans) Just leaving it in the bank, LIC's or other ?
If we're talking only looking at CG and nothing else, I'd be choosing a state on the rise/showing promise, strong demand suburbs in that state, in demand dwelling type, then look for value areas to catch up and try to buy a good deal, with add value potential would be even better. That's what I'd do if I was only looking for CG over the next 5 years.
Lots of travelling, bikes, cars. Ha ha I’ve only really knuckled down the past couple years.. now I’m putting the majority in my offset account saving for the next purchase.
I have been looking into south aus and south east Queensland recently. A large block that I may be able to develop down the track
If that suits your risk profile and interests then nothing wrong with it as a medium to longer term strategy. The crucial part though is you get your DD right for the area you buy in and the site it's self. Can be tricky to assess this and gauge risk though.
What's your work exit strategy? What is your end goal, and by when? A trend I noticed among high income PayG, is a tendency to go hard in buying low yield, negative geared properties. This makes sense if the sites are buy and hold for development purposes in the foreseeable future, however it isn't necessarily a great strategy to buy low yield properties en masse. It can lead to a situation where you tie yourself to your job, and make it more and more difficult to leave the high-income work-life. It sounds like you're making some lifestyle changes and saving a bit now, that's great to read. The income will help you overcome rookie mistakes as you educate yourself, however it will also attract a lot of snake-oil salesmen, buyers agents offering you low grade investment properties, etc. Figure out your end goal, and work backwards. Once you have that written down, you can make investment decisions that will take you closer to your target. This is a great forum to ask questions. I wish you the best.
