Where to next, Im hoping that some of the experienced knowledgeable users of PC could share some input & advice in what direction they would take next im currently mid 30s and still rather newish to the property world, but big on learning and listening to pod casts & other peoples investing journeys My job is working in a trade maintenance in mining. With my current qualifications work is easy to come by and can pick and choose various rosters at will. Whilst considering my self fortunate, having seen the industry change over the past 5 or so years, casualisation and wage cuts to 2008 levels there is nothing really to work towards career-wise, the job it self is mind-numbing & physical Currently, i have two IPS both house and land packages 4 bed & two bathrooms with lock up garage IP1 Perth 480k completed early 2018 to collect the first home buyers grant rented for $400 IP2 Logan reserve 420k Brisbane April 2019 $410 Ive recently ran some figures with an experienced mortgage broker & he came back with serviceability based on 7.25% with the major mid tier lenders just before the apra announcement of dropping that figure 146k – Max loan of $536k (Assuming Rental Yield of 4.5%) $230k – Max loan of $1.05mil (Assuming Rental Yield of 4.5%) My current wage is 146k but has just jumper up due to changing working rosters from even time to a 2&1 with the aim of buying again in September on a PAYG arrangement My long term aim is to be working a job share with in the next 2 to 3 years, 2 weeks on 4 off and still on a wage of around 100k with the hope of transitioning in to another career or some study or creating a side business & continue to carry on with the rent vesting life style & continue working in mining for the immediate passive income until no longer required Basically im not sure to what to buy next, with the changing demographics & cities becoming bigger Melbourne & Sydney offer the best opportunity for long term growth & markets having nearly bottomed out. going by ABS data Melbourne going to be the biggest city overtaking Sydney eventually. but Sydney has the long term limited land supply whereas Melbourne doesn't suffer that! Recently Ive been looking in to two bedroom units in and around the Melbourne inner suburbs, Brunswick, Coburg areas, but still always come back to the idea of owning land as the best long term option & possibly buying a duplex next The overall debt doesn’t scare me but over the next 2 or 3 years would like to be sitting on the largest asset base possible with a long term hold in mind, any guidance, suggestions or criticisms would be greatly appreciated
Well done on your achievement so far and it's good to be able to have options I would probably do the following: 1. Wait out another month or so and then hit up your broker again to check and see whether your borrowing capacity has changed. After APRA finalized the revised assessment policy we should see banks starting to roll out updated assessment calcs in the next month or two 2. You currently have properties in WA/QLD. Given where the current cycle is, instead of looking at Sydney/Melbourne which may go flat for a prolonged period of time it might be worth getting another property in Perth as it's currently at bottom? I don't know Perth well enough to comment on suburbs/areas but I know there are some really good Perth buys in the Perth thread. Also we've recently spoke to one of the BA at Perth on our podcast talking about prospects moving forward which I thought may hep you make a decision: Ep18 - Is Perth the next investment hotspot ? 3. If you do not want to secure another one in Perth then how about another one in Brisbane? Not sure where you bought in Logan but maybe one in the Northern area around Everton Park/Ferny Hills area. Decent OO area with acceptable yield so it won't be difficult to hold. 4. My thoughts on inner Melb units - these can work as long as you look for the older type of brick, 3 storey walk-up units with low strata (no lift/gym/pool etc). These will do well in the long term, although at this point I think Melbourne market is still on the decline but if you can pick up something that's below the intrinsic value then it could also work. Just my 2 cents. Cheers, David
