What is best thing to do ?

Hi All, From last 6 months my head is moving a lot in property world , have been to lot of broadcast ,spoke to some BA . Still lot to learn and grow .

My story so far.

I bought my first property in Western suburbs of Melbourne in 2016 , 320k it was 3 bed ,2 bath house , lived in there for 4 years and then spoke to few friends , really not aware of property world so got my property evaluated and got $ 100 k equity from it , that i used and Bought PPOR in Western Suburbs of Melbourne for 540 k in April 2020, Got property evaluation done last week from NAB /ANZ both got 600k +.

1. Property 1 = Outstanding Loan of 260 k +100 k of Equity loan .,value is 490 K at present .
2. Property 2 = Outstanding loan 460 k , Current value is 620 k (Fixed loan for 2 year ending April 2022)

But from here How should i plan to increase and serviceability.

What you going to do next if in my situation or should i have done something different .Any expereince guidance will be good.

 

What does your mortgage broker say is your current borrowing capacity for the next one?

what do you want to achieve? What do you have to do to get there?

What you are asking is, what should I do next to get the highest return for my money? No one knows that.

 

Thanks Trainee.

Have email by MB today ,haven't heard back yet.

i want to build portfolio to retire in next 10 years , i guess to do what my understanding say is to have positive gear property and a healthy serviceability or borrowing power .

What you should have done if in my shoes ?

 

Do you know for sure if you hit your maximum borrowing capacity yet?
The only way to increase borrowing capacity is to increase your income or reduce debt.
Your broker should be able to map out and advise how many properties you could afford to buy on your current level of income and put a plan in place to achieve what you're looking to do, ideally.

 

Thanks Lindsay , i am not sure if i have hit my max borrowing power .

i guess i am already working on increasing my income , reducing Debt can try but it helps max 10k in year.

Good point , will be able to get reply from my broker then put thought behind it and see.

What you think you should have done if in my shoes ?,Should you have bought PPOR for 540 k or have bought or invested in some other way in real estate ?

 

You've only been doing this for 5 years. You have about 300k equity on 1.1m exposure.

That's a start. In 2 more cycles it'll be great, probably.

If I were you? I would think that I don't have a viable plan to retire in 10 years at the moment. Talk to a broker, run some spreadsheets, map things out.

 

Thanks Trainee, i guess it is learning process for me , as i want to build something that my next generation can follow i hope , on top i guess present situation to achieve need some right team to guide to make it realistic.

What is your game plan in next 10 years ?

 

Don't compare yourself to others, what works for them might not work for you. Everyone has different financial situations and requirements so there is no 'one size fits all' approach to investing.
Best thing to do is find out if/how achievable retirement in 10 years is for you and what you need to do to get there, so you have a plan of attack.
Just my 2 cents

 

Good point , i guess need right people around to make it happen.Search is on .

 

Hi Aman,

You have got the growth because the area has grown. Honestly, while you have got a decent growth. It may not be in line to growth what many investors have achieved in Victoria. And it may be because you try to explore suburbs suited more for residence.
investment grade suburbs are very different and Victoria if full of that starting 110 kms north (from cbd) to 150 kms south (both east and west).

Step 1 (as Trainee said): Draw a plan. Answer questions like, what sort of passive income for retirement, how many properties or gross value? What growth you need year on year? This will keep your goals defined and keep the plan close to your chest.

Step 2 (as Lindsay said): Do not follow friends or take advice from them unless some of them are way ahead to where you are. If most of them have got similar equity and bought pretty much where you have bought, please try to read more here or get access to better resourced.

Step 3: Spend on education: Try to seek more guidance, mentorship, courses and figure out ways in which you can gain more knowledge in property.

Step 4: Figure out ways to increase income, income streams to increase servicing.

Step 5: Victoria has got awesome boom in last 5 years. Start to explore other markets and assets. But please do not go out of the way to buy spruiked assets.

Regards
Ashish

 

Thanks Ashish for details info.

Yes this platform has guided me a lot, i have been working on right team at present so to make things better in future.

Good Luck

Aman