What to do next?

Discussion in 'Investment Strategy' started by Ramy Niami, 26th May, 2022.

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  1. Ramy Niami

    Ramy Niami New Member

    Joined:
    26th May, 2022
    Posts:
    1
    Location:
    Mount Annan
    Hi,

    I currently own 3 investment properties and want to purchase a PPOR.

    I want to know if anyone has any advice on what to do or how to structure my new PPOR.

    My ultimate goal is to continue to grow my property portfolio but I’m concerned as all my IP are currently negatively geared and now that my biggest expense will be my PPOR it will limit my servicing for future lending for IP.

    What is the ideal way to set it all up, should I sell one of my IP to reduce the overall borrowed amount for my PPOR or should I not purchase a PPOR and continue to build my IP portfolio?

    Any advice and guidance will be greatly appreciated.

    Thanks
     
    Ramy Niami, 26th May, 2022
    #1
  2. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,718
    Location:
    South East Queensland
    @Simon Hampel do you think @Ramy Niami might get a better response to this if you moved it to another area of the forum (e.g. Investment Strategy)?
     
    Tom Rivera, 3rd Jun, 2022
    #2
    Simon Hampel likes this.
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,684
    Location:
    Perth WA + Buderim Qld
    Do you have a broker? It's hard to give meaningful advice on this without knowing your borrowing capacity.

    But that said, if you're planning on using equity for your PPOR, you will end up with a large non-deductible debt on your home, with smaller investment loans.

    If any of your INV aren't performing, you could consider selling one, and using the proceeds to increase the deposit on your PPOR. Depending on the final LVR of your PPOR, you could then borrow against that equity to use as a deposit for more INV.

    It just depends on how limited your capacity is, and how well your current INV's are doing.
     
    Jess Peletier, 3rd Jun, 2022
    #3
  4. Chris B

    Chris B Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
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    Location:
    Melbourne
    Are you able to provide more information about your current debt and property values?
    What purchase price are you proposing? What is your current income?

    Ideally you want to retain as much debt as possible against your investment properties and use offset savings towards the purchase of the PPOR but this all depends on your current situation and you haven't provided any detail.
     
    Chris B, 3rd Jun, 2022
    #4
Self-Managed Super – Super your way

PFI provide our clients with the opportunity to purchase an investment property, together with performing equity investments from a wide range of ASX listed securities some providing monthly income. This is the value of advice.