Hey guys! I've been reading here for a while now and I've got some great info from a lot of you. Really enjoying following along a lot of your stories and taking in what might work for me one day! A little about me, I'm 26 and single. Still living at home in Melbourne and with no plans of moving out for the next few years at least. I have an investment property that I built in 2017 and I'm now looking at my next IP move. Open to any and all thoughts! I make between $60,000-$70,000 a year (closer to 70, regular OT going on 9 years) IP in Melbourne valued at $550,000 and rented at $390pw No credit cards or personal loans This IP has been really smooth for me with great tenants and no maintenance headaches at this stage. I'm thinking I'd like to build again for the depreciation benefits alone, but I'd love to hear your opinions on whether that's the right way to go about it or whether I should be looking for an established older house on a decent block. Really appreciate any help guys! Thanks!
You've got off to a good start, achieved some equity and seem to have stable property. It is possible that you could re-draw equity (currently about 55% LVR) for another property but could be stretching yourself a bit thin with another deal. Wouldn't necessarily jump right out and stretch yourself at the moment. Consider to continue to save, pay down loan / store up in offset, maybe trickle into some other investments (ETFs etc), work on your career, if not done so some overseas vacation, and move out of your parents house. The concern is using equity to fund more debt, and not having sufficient "head-room" in additional income or savings if things don't go so smoothly.
Thanks for the reply ORAC! It would be a bit tight if my overtime ever dried up (as I said above it hasn't changed at all in nearly 9 years, won't be there forever though) I've got about 45k in offsets at the moment and I feel I'm ready for something else seeing as I am still living with parents and have that security. I'm thinking I should take advantage of that while it's there? Really appreciate your response!!
Me again! Still have those same tenants in my original property and I feel as though I'm ready for a 2nd. Had my property valued at 580k with 290k owing. I've been looking at older walk up units around the beach but I just want to be making sure I'm making the best decision possible in terms of capital growth and being able to continue to purchase properties as the years go by. Any advice would be magic! Thanks!
Given you already have an IP in Vic (I assume from your location), given state gov stamp duty & land tax increases perhaps the next IP interstate might be a good consideration unless of course you were planning to built it yourself again. Good luck!
Thanks for the response! I've been looking all over trying to find the best option for me and my situation. This next one is very important to me as I plan on at least 3 IPs in total. Guess I'll keep on the lookout for now. Thanks again!
450k budget! Focusing on growth more so than positive cash flow at this point with the other IP looking after itself. Open to looking interstate if that ends up being the best way of going about it, especially avoiding a big land tax bill! Thanks for the reply
With 450k you would have quite a few options to purchase from. I would encourage you to look interstate as all investors should develop the mindset of becoming a "borderless" investor. In doing so, you don't limit yourself to one area or region and open up much more opportunities within your price range. You may want to consider looking into the Adelaide or Brisbane market as you would be able to pick up an established home on a decent land component (600sqm) in and around the city. Moreover, your search should focus on finding high-demand areas which will drive future short-term growth. Feel free to PM if you want any advice on where to start your search.
Thanks! I had a look around Redcliffe and Clontarf areas a few years back but didn't have the confidence to pull the trigger at the time. Would love to hear what you have in mind regarding Adelaide and Brisbane though!
Building would take time and from what I know, builders are in short supply as are building materials
I would have been happy to invest in pockets of the Redcliffe area, I was also looking there a couple of years ago. If you are looking today a good start would be to look at suburbs around Taperoo and Para Hills in Adelaide or Moreton bay and Logan in Brisbane. Each area would have suburbs that fit your budget and currently have strong demand.
Still going in circles over here IP now valued at 700k with 280k owing and 50k in offsets. I decided (through pages and pages of great info from you lot!) that I should start looking into shares. I started with 10k 50/50 VAS/VGS and plan to top it up at least $500 each month. No longer single and I'm still living at home with my parents. The idea of the next property being the family home has muddled my original plan of accumulating over the next few years. Please help! Maybe buying something interstate as an IP is the way to go, and in the next few years see where we are at and make a decision on the family home at that time.# Thanks!
Why don't you purchase something in VIC that you would be happy to live in as you get closer to 30 and want to start asserting your independence? There are always heaps of options in terms of investment properties, locally or interstate. But it's not good to you if you buy all of these IP's but have no where to live. I suggest just from a life planning perspective: buy something that you could see yourself living in as say a newly wed. Perhaps rent it out for the first year and have the option to move in later on. Again, all these IP's and still living with mum and dad defeats the purpose of getting into real estate in the first place. Buying real estate should give you options.
Well done on the progress so far, you are setting a very good foundation for future wealth creation and sound like you have the right mindset as well The next step is to get an investment savvy broker to "run the numbers" for you to access existing equity as well as your next purchase. Please don't DIY as plenty of solid advice is available from the professionals on here.
