So I am in a position where we want to buy a 2nd property but don't know what strategy to take. So here's my situation, we bought 7 months ago at the bottom and got a good buy in mt gravatt (mansfield catchment). Few small renos later we will have about $130,000 in equity. We're 32 married, kids this year i hope and we earn a combined 120k potentially 160k if jobs change. Current loan 350k, we repay about 3.1k monthly and have no other debits. We could take out another loan of 400k to buy a run down place to build and sell, or reno and rent or I was thinking how do we go about new build of a home we like costing about 400k where we currently are and then rent that out till the kids are ready for school in about 10 years (wife likes the area). That way to get it paid off plus depreciation benefits etc... and then buy a cheaper house under 500k and reno sell or rent that, and move on to the next. I'm comfortable on the southside from Rochedale south/underwood to city. what other questions do we ask ourselves, what do we do next. My aim to to pay my PPOR off by 40 and either flick a few houses by then a have some under rent. Do-able?
not enough soft data suggest u sit with someone that can take u through a guided discovery process to attack your real goals and the end game. That could be your broker banker accountant planner etc ta rolf
Anything is do-able if you do it! As you say with your 1st investment you made a good deal, if you made $130K equity in that deal, or slightly less because of renovation this is quite an achievement for 7 month period. I would continue with this strategy for now, buy well of value do a small renovation draw out equity and repeat, repeat until you want to buy your PPOR (is this what you are asking?). Concentrate on few such suburbs until you can be comfortable making such deals. You should also stay anonymous (don't post under your actual name), it is very easy to look you up on RP Data and check all your investments (why risk this...)!
If you want to buy a property buy a property. If you want to pay off your loan you could put 3K each month into shares, or if you like property a REIT and pay of your PPOR loan in about 7 years or less.. You also then have funds to put in unconditional offers, and have agents coming to you with the best properties before they hit the market as many sales are falling over because of finance.
What extra soft data would you need? Well we have a property we are happy with obviously could always be better (city view grrenalopes Holland park if we could on a 600 block). But was just thinking am I better off renting as it stands, an old 60s 3bed house or am I better off building something I like and then renting it that way to claim depreciation aswell. What happens after I move back in and if I decide bto sell it after a few years, what amount of CGT would I incur?
Consider executing your plan prior to the kids. Maternity leave lending becomes harder (not impossible) if and when this arises so if you can do it this side of kids then your options and potentially borrowing capacity would be more.
