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Spend my money!

Discussion in 'General Property Chat' started by tasksta, 18th Jul, 2016.

  1. tasksta

    tasksta Active Member

    Joined:
    18th Jul, 2016
    Posts:
    40
    Location:
    Mornington peninsula
    Hi folks

    Its great to spend other peoples money so go on and pretend to spend mine. (Yes i will get pro advice but this is much more fun and social)

    ill get to the point....

    I have pre approval for 700k and need advice for next move, my status is:

    North Strathfield IP1: purchased 480k, rented 550pw valued at 720k

    Crestmead IP2: purchased 290k, rented 340pw, valued at 315k

    Currently renting the family dream house on the Morny peninsula for 750pw and have approval for up to 700k.

    Do i:

    1. Sell Sydney, cash out and buy the dream home leaving IP2 as is

    2. Buy cheapie brick and tile on Morny peninsula, move in to save rent for few years, mildly reno then turnover

    3. Buy IP3 wherever is hot right now and continue to rent the dream house.

    4. Got a better idea :)

    Reluctant to sell Sydney as its such a Cash cow and will never get back into the market, but so tempting to cash out and purchase locally.

    Second concern is limited growth prospects if i buy locally and market also getting warm.

    First world problems i know but here we all are. :)

    Cheers
    Tasksta
     
  2. skater

    skater Capitalist Premium Member

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    Location:
    Sydney
    Sell them both & give the money to me.:D

    You did say 'spend my money'.:p
     
    Ed Barton likes this.
  3. tasksta

    tasksta Active Member

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    Location:
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    Seems legit...
     
    skater likes this.
  4. C-mac

    C-mac Well-Known Member

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    Location:
    Sydney
    I'm with Skater! Sell up and give to me ;)

    Jokes aside, I think North Strathfield is poised for further growth (maybe not in this cycle but certainly next), and seeing as it is yielding well, it may be smart to hold it seeing as if isnt costing you anything/much to do that. Also, you won't be able to buy back in to Sydney unless you suck it up and buy a unit which probably isnt the best thing to do.

    How is Crestmead performing? I am not suggesting to sell that either, based on the growth you posted it sounds like it was a recent-ish purchase, so you would lose money if you sold it. Plus, I think it smarter to hold and sit tight on it. If it grows at the current rates for the Logan area, in another year or two you could have enough equity to go again (albeit at an 88/12 lend, it'd be a cheapie - Maybe Adelaide or Hobart?)

    So I would sit tight. Rent the dream home on the peninsula and keep expanding the portfolio. That way you'll maintain servicing and can look at PPR later on.
     
    Blueskies likes this.
  5. Blueskies

    Blueskies Well-Known Member

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    Location:
    Brisbane
    You already have 2 with pretty good yield, maybe look to buy a higher value negative geared propert in the Mornington peninsula with a view to making it your PPOR down the track?
     
  6. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    226
    Location:
    Sydney
    Reading your post i get the impression you are ambitious and driven, so......
    Hold both IP 1&2 ;)
    Purchase a PPOR in Mornington, reno/value add, saving on rent and beating CGT when sold in a year or two. :rolleyes:
    After purchase of PPOR and reno use balance of $700k to buy IP3:D

    (sure, it is more commitment & repayments, but it sounds like you want the challenge :rolleyes: )
     
  7. tasksta

    tasksta Active Member

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    18th Jul, 2016
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    40
    Location:
    Mornington peninsula
    Thanks Cmac.

    Yes they are both performing well and we have been surprised how successful our conservative strategy has played out in short term.

    Can't help think $3250 rent a month is dead money but i guess if i can buy again i cant conplain with 3 positive IP's.

    Hmmm... Where to buy next?

    Dont want to get greedy but would love some CG to go with my positive cashflow. Too late to subdivide in Logan? :)
     
  8. tasksta

    tasksta Active Member

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    Location:
    Mornington peninsula
    Happy to move into a short term PPOR for several years locally but just not convinced i will see much growth down here and i would be best to invest interstate?
     
  9. tasksta

    tasksta Active Member

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    18th Jul, 2016
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    Location:
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    Love the challenge, nothing drives me more than people telling me i cant!

    Agree with your recommendation i just need to find something that i can add value too locally that is still liveable and affordable. Certainly A challenge in Mount Eliza currently!
     
  10. HUGH72

    HUGH72 Well-Known Member

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    How much would a decent ppor on the Mornington Peninsula cost?

    I wouldn't sell the current investments but I agree $750 per week to rent the dream home does sound like a lot.
     
  11. tasksta

    tasksta Active Member

    Joined:
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    Location:
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    Mornington and Mount Martha you can still get a ripper house on big block for 500 - 600 easy enough. Trouble is we need to live in Mount Eliza for the schools and the market has heated up over last 6 months. i could buy a doer upper for high 600 but dream home would be touching $1M now.

    Good example of doer upper below, these are becoming very rare. Big flat block, brick and tile hard to lose really but am i better investing interstate and renting?

    19 Yewers Avenue Mount Eliza Vic 3930 - House for Sale #123127870 - realestate.com.au