Our portfolio at 28, starting family- what next?

Yeah, looks tight. Can you consider a cheaper PPOR? You could live there for a while, then upgrade and keep it as an IP. We have done that. We lived in a small PPOR for many years. Its now an IP, and we've upgraded to a larger PPOR.

We invested in resi IP's while we lived in the small PPOR. It was the only way we could afford to buy other IP's.

 

Thanks @fuudrizzle, really great insight. Totally agree that this is a strong CG performer. It did all the heavy lifting which helped buy the IPs in Brisbane.

Any recommendations on the next capital city?

Heard Melbourne's population will exceed Sydney in the next 30 years.

 

Start small. Gotcha!
Plus, less cleaning

 

People seem to like Adelaide at the moment, not sure why but a BA from Melbourne preferred this over Brisbane when I asked 1-2 months ago? Maybe browse the "where to buy" part of the forum to get ideas?

 

I like these ideas. Adding a high growth PPOR could be a great strategy (I know cash flow is tight now, and its probably not possible at this stage), but you could eventually sell it capital gains tax free (ie when your family has grown up) and pay off all debt (or a substantial amount) on your IP's. You may even have money left over to buy yourself a small flat or you could buy one as an IP later down the track with the view to live in it at some stage in the future.

 

I like Melbourne as an investment too but for me I would buy it as my last property during accumulation phase as the land tax threshold is $250k so your cashflow may take a hit? That's just me though.

 

That is also an option since Sydney will probably hit another cycle in the next 12 years and the 500k- 1 million increase in equity should help pay of a lot of the debt. Only problem is not to fall in love with the PPOR when it comes time to sell

 

We use R&H Beenleigh for Eagleby property. Bought it with existing tenants, existing PM. They have a team who manages the property ie A for rental collection, B for maintenance, C for inspection etc. Wasn't used to dealing with a team of PM, most places have 1 or 2 people you talk to. PM if you want more specifics of you like.

Stapylton, had existing tenants, existing PM (The lodge onsite managers, recently changed ownership).

 

Well done Peter. with 5 IPs sitting in QLD, I am wondering if you have hit the land tax threshold yet? I like Brisbane a lot at this time of the cycle (both yield and CG potential), but hesitate to buy more there because of hitting land tax threshold.

Also wondering what's drive you buying OTP unit in South Brisbane @460k, having seen that most of your other holdings are houses/townhouse, and the media negativity of apartment oversupply in brisbane

 

I'd be looking for a small PPOR with some value add potential. Keep the wife happy.

I would also try get those GF's done. The cash flow will bump up significantly (serviceability) just in time for wife taking time off.

I am in a very similar position and age. We want a family in next 2 years so have recently settled on some land to build the family PPOR. I also have 2 IP's that can take GF's so for me it is build PPOR, once complete there will be some equity to borrow against to do the 2 GF's, then we can drop to 1 income.

 

Excellent work!

But is there an option 5?
Invest in


Then. ...

 

Anyone know the cost, rules, etc when it comes to building a GF? It may be a strategy I may need to utilise in the future.

 

Thanks @+men

Land tax threshold under individual names
QLD 600,000
NSW 482,000
VIC 250,000
Some under my name, some under wife's name

In 2014, during our year of learning, we got sucked into an OTP deal at a seminar
Valuation came back 2 weeks ago at cost, so we're relieved.

 

@bob shovel
Haha thanks
These days, oral contraception is more popular, closer feel

 

In NSW,
- min land size 450m2 of lot
- max floor area of gf build 60m2
- through DA, no minimum frontage
- through CDC, 12m min frontage

Best to speak to gf builder. I've spoken to Glenda/Chris at blue gum granny flats, they were very helpful.