Hi, I’m in the process of chatting the BAs and property advisors but thought I would reach out. My situation: - I currently live in the US but am Australian. We work in professional services so have high incomes in relative AUD sense so serviceability is strong. - Intend to move back to Sydney in 3-5 years. - I bought a 2 bedroom townhouse in VIC. Mum went guarantor on deposit so 105% leverage. Bought for ~$500k, recently refi @$588k valuation and put in more equity so no longer guarantor. Yield ~4%. - will help fund my Mum’s retirement in 8-10 years who is house wealthy but cash poor (sub$50k assets and income), which the guarantor is intended to create wealth to help fund. Proposed Strategy: - parental guarantee for 105% LVR on ~700-800k property with aim to refi guarantee out in 3-4 years. Focus on high capital growth area, low tenant risk lower yield e.g. inner west Melbourne such as Footscray or open for suggestions (Brisbane inner city area to diversify?). Do purchase in next 6-9 months - next 12 months, buy property in Sydney that can live in once I move back to Sydney but will rent out until I move back. Do some renovations prior to moving back. Tax benefits from this strategy. House will likely be stepping stone for future PPOR but buy an hold after as investment property. - will use a BA for above given offshore. - pay down debt on 2 parental guaranteed properties significantly to have net cash flow to mother. Any suggestions would be great!
