Seeking advice to become an investor

Hi everyone,

I'm looking for some advice on who to speak to regarding starting an IP portfolio.

My current situation - I'm 27, live in the western suburbs (Victoria), have a remaining mortgage on my PPOR of $180,000 which is valued at around $460,000 and I have been ready to make an IP purchase for some time now.

My plan is to continue to grow a long term investment portfolio that will hopefully assist me one day in retirement.

I have done a lot of research, read a lot of books and threads on this forum, however, still find the investment world a little daunting/confusing and was hoping that I could find a professional to sit down with (locally) to come up with some direction and a possible strategy on how to research the correct place to buy, set up my loans, structure everything for tax purposes and get the most out of my individual situation.

TIA

 

H @Kate05

Welcome to PC. Well done on your journey so far.

What is it that you find daunting / confusing?

Whilst you have the equity, what you can do will also come down to your income, and also your risk profile - what type of property (cashflow vs capital growth, how much negative cash flow you are OK with).

 

$280k of equity at 27 yrs is a great start!

 

Thanks for your response. My superable salary is $95,000 Per Annum. As for everything else - that's what I was hoping I could find someone to help me with.

 

Hi Kate, Welcome to the forums

I know how you feel - it can be super hard to navigate on your own! Having someone who knows your scenario inside out and can point you in the right direction is gold.

It's hard to find people who will do this and not have a property to sell you at the end, unfortunately!

When do you want to retire? And what kind of income do you hope to have at that point?

 

Or you could go for a cashflow positive property instead of a -ve one.

 

One tip I may share. You dont need to spend $1m to invest. Two smaller and cheaper investments may spread some risk and even consider two different areas. But strat with one and plan for two if that seems like a good idea. And even consider dual income property like a house + GF. Look for cashflow and you can wait out any market impacts. When I say cashflow I mean AFTER tax cashflow. A property can be cashflow negative but with tax refunds imapcts it can equalise and become zero. That said if a property is cashflow +ve on its own it even better BUT it could end up meaning there is tax to pay and that could take it negative.

Be wary of people seeking to help you create wealth. They may only want some of it and its hard to make wealth so dont race at giving it away. This one is tough but a BA can work both ways. They cost a bit but can produce outcomes. Most buyers can do it themselves.

Dont buy for the sake of it. Approach this thinking its real money.

I will share a copy of our rental property estimator that helps demonstrate cashflows etc

Start with a great experienced broker (from PC !!!) as they can assess your capacity so you can know your limits without being pushed by someone who works with a spruiker whho may push it too far.