The Start To My Property Journey

Hello All, First time posting.

Little bit about myself first, Im 22 years old, Im a mortgage broker / Courier Driver (working on scrapping the courier work to be full time mortgage broker/investor).

I race motocross which wastes a lot of my money but I love it so much I cant stop!

My partner and I built our PPOR back in August 2015 $245k 3bed, 2 bath, 2 car home in Andrews Farm, South Australia. Absolutely love the house as it was an early goal of mine to move out and buy a house young. If I knew what I do now, I wouldnt have purchased a house to live in or move out but thats part of life.

We have now moved out and are renting a place closer to friends and family in Paralowie which we are loving.

The Andrews Farm house is being rented out to my grandma which is covering the mortgage repayments (less rates) and is currently still P & I. Just had a Depreciation Schedule sorted and waiting for it to be sent to me and the Accountant.

Currently saving the deposit for the next investment. I am more leaning towards the lower scale of the market with a higher cash flow as our house hold income isnt huge. I have also started researching into Property advisors to get another purchase done through their expertise but with the lower cash flow currently it might make it harder to get the 2nd place sooner.

 

Good work on getting a house at 22 years old mate!

I know where you are coming from with the Motorcross.. I've been in car rallying for over 10 years. Realised at 27 years old should take a break from it and hopefully return after building a bit more of a property portfolio.

Have you gained much in the way of equity from your first house?

 

Congrats on your first property AND being a mortgage broker at 22, sounds like a recipe for success going forward - watch this space?!

 

I havnt had a bank valuation done yet, but the loan is currently at $230k and i believe the value would be at $260k. but i will probably get an evaluation done near when im going to get my second investment.

 

Like the others have said well done buying a house at 22. I did the same myself when I lived in the UK. It sounds to me like you don't have anywhere near enough equity in the place to move forward at this stage. The trick is to invest in the right type of property to grow equity which you use as a deposit for the next property. If you have a property that does not grow you can't move forward. This was the problem I had for years until I changed my strategy.

 

Hi Everyone, thanks for the comments so far.
I thought id provide a little bit of an update.

I recently had a Depreciation Schedule sorted through BMT and I couldn't recommend them enough, for the cost of $770 my partner and I will save some good money over the next 40 years.

It worked out to be about $160'000 off our taxable income which would result to about $30'000 off our tax bill for the life of the schedule (or averaged out about $760 per year)

Anyone with an investment that doesn't already have one sorted I would look into it as its the best money Ive ever spent on a return that will keep coming for many years.

On a side note, we are probably closer to 1/3 the way there to our next deposit being ready to start looking at properties real close.
Thanks