Hi, I'm new to this forum. I would appreciate any advice on where I should go from here. I'm very green. I rent a unit but have two IP's One in Palmerston NT Worth about $410- 420k Rented for $390 pw I owe 313k with 60k in an offset account. Interest only The other in Kewarra Beach Cairns Worth around $370-375k Rented for 390pw I owe 332k with only 2k in an offset account. Interest only I also have another interest only loan that was set up when I bought the Cairns property. Owe 95k with 39k in an offset account. I earn $180 k a year, no other debt. Great tenants in both places. Any suggestions on where I could go from here???
Have you checked with a broker whther you have any borrowing capacity left? What are your outgoings looking like?
My first question is why you own properties in relatively small markets when your income should let you buy into major cities with potentially better long term growth potential?
I suggest talking to a Mortgage Broker to establish what you can afford to buy without too much risk. Then once you know the purchase price start looking in other markets than the ones you currently have so as to minimise land tax and diversify your property portfolio.
Hi. I haven't. I bought my second one about a year ago and I thought I'd sit and wait to see how I managed for a while. It's all pretty easy to manage so far. My outgoings. I don't have a budget drawn up. I pay $400 pw rent. I've got a 20 percent share in a $50k boat that I chip some cash into here and there but doesn't cost too much. My Palmerston house costs $850 per month in interest My Cairns house costs $1211 in interest My other loan costs $317 in interest.
I bought the Palmerston place in 2013 to live in. I just rented it out Dec 16 I bought the Cairns house because I like the area and was planning a move to work over there.
Once you know your price range then look for diversity in incomes, good infrastructure, consider if new or second hand makes a difference to your bottom line. Another thought is are you holding for long term or looking for a turn over? Regards Nick
Do you have an accountant? Might be worth hooking up a skype meeting with one of the ones on here that specialise in property and working out a battle plan? I'd forget doing anything until you have a structure in place and a plan moving forward. It's easier to go places when you know where you are on the map....
As close to a major city as possible which is very hard in Sydney, Melbourne still there and Brisbane has plenty of stock.
Would you mind letting me know some specific difference you are looking for when searching for holding long term vs looking for a turn over? Cheers.
With both of these places not looking good for growth would I be better served just topping up the offset accounts for 12 months to reduce the interest I'm paying? I could also use the 45-50k I've got in one of the offsets to see a stock broker and invest in some shares instead?
1. Don't worry about the interest as it's tax deductible. 2. If you have free cash that you don't need as a buffer, start reading up on the shares thread. If you want to keep it easy, learn about LICs. Buy Milton (MLT), Argo (ARG), BKI (BKI) and Whitefield (WHF). Watch every Peter Thornhill video you can (www.Motivatedmoney.com.au).
