What would you do in my position?

Discussion in 'Investment Strategy' started by Docrich, 28th Nov, 2019.

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  1. Docrich

    Docrich New Member

    Joined:
    21st Nov, 2019
    Posts:
    4
    Location:
    Qld
    My current situation I purchased a 720k house out south west of bris 30km from cbd originally to live with my then partner and child, we broke up , I’ve got an IP in the Logan area I bought in 2015 for 300k I owe on 178k currently @ 200 pw.

    So 715k equity in One property , 150k in Logan property. I have 320k savings currently, I’m on a low income after taxes, child support And costs I’m left with 700 net so loan servicibility is a nightmare, credit ratings in the low 700s

    Options I’m considering are A) use some savings and loan older style 3-4 bed house in Arana hills, install a 2 bed granny flat. 500k property + 100k granny flat Yield 4.6% after tax, then repeat this when I can again
    B) newish 3 bed townhouse in carina, Coorparoo possibly morningside , 5-600k budget
    C) sell ppor , take that ~700k + 320k savings and buy another ppor more suitable near the city in Norman park, morningside, west end, east Brisbane. 1-1.2range (so possible 200k Loan)
    D) rent out Ppor home hold, take 420pw after all taxes and costs to increase Loan servicibility

    I like C best, will put me closer to my child and i feel room to grow in value where I am is low and Im already heavily invested in other speculative assets so I don’t wanna be over exposed to sitting there each year hoping land prices continue to go up and also feeling stuck for when and how I can get a ppor closer to the city after taking on more debt, nor do I like the idea of having a bunch of dumpy properties with issues . I’ve learnt a lesson from dealing with my Logan property it’s been tiring for what the upside is, maybe I got unlucky there but for me it’s been tough also fear I may endup with a lot of capital trapped in my ppor due to my low income and I cannot continue leveraging‍♂️ Any helps appreciated
     
  2. Trainee

    Trainee Well-Known Member

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    You really want to put your entire net into the ppor when your day to day cashflow is tight? What sort of speculative investments?
     
  3. Docrich

    Docrich New Member

    Joined:
    21st Nov, 2019
    Posts:
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    Location:
    Qld
    Yeah cash flows an issue but capital gains is big to me, I’ve seen how that works through building a seven figure stocks/crypto portfolio
     
  4. Lindsay_W

    Lindsay_W Well-Known Member

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    1st Jul, 2015
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    Location:
    QLD/Australia Wide
    What about options D,E,F,G etc.?
    Have you spoken to a financial planner?
     
  5. Morgs

    Morgs Well-Known Member Business Member

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    Sydney NSW
    What is your longer term goal / picture?

    I like the idea of building income and then having servicing that'll give you multiple options. Not sure in your situation what that'd mean for you of course.
     
  6. Marg4000

    Marg4000 Well-Known Member

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    18th Jun, 2015
    Posts:
    5,668
    Location:
    Qld
    With Option (a), make sure you can legally rent the granny flat separate to the main house. In the BCC area, you can’t.
     
  7. Docrich

    Docrich New Member

    Joined:
    21st Nov, 2019
    Posts:
    4
    Location:
    Qld
    Thanks for the responses, I’ve spoken to a planner and the advice was to get my cash flow up by buying properties, switching some of my portfolio to dividend shares which I usually avoid. What’s worked for me was taking calculated risks to build capital early,

    my goals to just continue to build capital and grow a real estate portfolio on par with shares and some crypto, looking at more towards blue chip properties currently, but I am happy to learn, I’m the first to admit with property I’m no expert

    Arana hills is on the limit of Moreton bay where it’s legal to rent seperate,
     

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