Should I add more IPs ?

Discussion in 'Property Experts' started by gateway, 27th May, 2017.

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  1. gateway

    gateway Member

    Joined:
    27th May, 2017
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    5
    Location:
    VIC
    My situation is as follows

    PPSR MV $750k owing $250k
    IP 1 MV $550k owing $ 400k
    IP 2 MV $370k. Owing $325k

    I am in my early 50s married.We have been in AUS for about 10 years. Both of us are professionals together grossing over $220k p a. I also have an online business which makes about $25k pa. I am passionate about investing and my confusion is

    Whether we should buy more properties which means more borrowings, I am already in 50s
    Whether the bank will lend me more
    Are we at the peak of property cycle and waiting is the right strategy?

    So far so good, we don't know what is the best strategy going forward.Any advise from the experts would be great. Thanks heaps
     
    gateway, 27th May, 2017
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If you think property will make you money why not buy some more/?
     
    Terry_w, 27th May, 2017
    #2
    WestOz likes this.
  3. Richard Taylor

    Richard Taylor Well-Known Member

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    Brisbane
    If you think the property market is coming off the boil why not look to invest in a mortgage investment trust or similar and use the positive income to start to pay down your PPOR.

    This way you have exposure to property by way of a healthy annual yield with monthly interest payments but not the added costs involved such as stamp duty, council rates etc.

    We are working more and more with clients adopting a debt reduction strategy especially on their non deductible debt.
     
    Richard Taylor, 28th May, 2017
    #3
  4. jins13

    jins13 Well-Known Member

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    It's up to everyone's individual position. For me, I think I can purchase another property but that involves moving the loan from a big 4 to a lender like Liberty who seems to be increasing their rates at much higher rate in comparison to the big 4s which def affects cashflow. I am hoping that maybe next year, I can move out of Liberty and save a bundle.
     
    jins13, 28th May, 2017
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    That might be difficult.
     
    Terry_w, 29th May, 2017
    #5
  6. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
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    Location:
    Perth
    If you contact one of the great finance brokers on this forum they will be able to assess your borrowing capacity.

    Sydney could be nearing a peak in prices and Melbourne may reach a peak in prices soon.

    Perth prices are on the way down and the market may not have bottomed out.
    Brisbane prices are moving up but I don't think the market is near peak.
    Adelaide prices are moving but not near peak but then the market may not boom.
    Hobart is quite hot from my understanding.

    There are a lot of options and unfortunately no one can give you one definitive answer.
     
    Perthguy, 29th May, 2017
    #6