I would like to get some opinion on what my next step would be and seek guidance on what you would do if you where in the same position.
At 23 my current situation stands like this:
- I work full time on weekdays with a steady income and a second part time job on the weekend. Living at home, so minimal expenses.
- 2 investment properties
- First investment was an apartment (1 bed, 1 bath and car space) in the Eastern suburbs of Melbourne which I purchased off the plan at the end of 2008. I took out a bank guarantee and only paid interest until settlement which was in 2012. Reason for the purchase was I didn't have enough of a deposit but I took advantage of the high FHOG and boost during that time. Lived in it for 6 months and it is now being rented out for $375/wk. I took out a loan and also borrowed some money off my folks. The rent covers the my mortgage but I have to fork out for body corp, rates etc... . And yeah I got to pay back my parents somewhere along the track. I agree my first investment choice could of been better but none the less I made a first step into building my portfolio.
- Second investment was a 1960-70's brick veneer original house on a subdivided block with no body corporate (3 bed, 1 bath, car space) in the City of Whitehorse which was purchased a couple of months into 2013. Renovated bathroom and kitchen, new carpets etc. (not flashy renovations but does the job to house a good tenant. Picked it up for low $400K and is bringing in $380/wk. Another comparable went on the market unrenovated and sold for low $500K a week or so later and now the market has gone hypo in that area however there is some good deals if you wait for the right property to pop up.
I currently have approval from the bank for $550K. My options going through my head at the moment to purchase in the coming weeks to couple of months depending on if the right property comes up (note I will be borrowing the full amount):
- Another subdivided 3 bedder for high $300K to low $400K in the City of Whitehorse.
- Existing house with land and potential to subdivide in Ringwood, Heathmont through to Croydon low to mid $400K.
- Exisiting house with land and potential to subdivide in Heidelberg West, Heidelberg Heights, Bellfield, Epping, Lalor, Thomastown. Anything from low $300K to low $400K.
- Currently paying my folks back slowly, is there a faster way to pay them back in a lump sum by drawing equity from the properties? Am very greatful and lucky that my folks decided to help out from the beginning.
My strategy is to buy and hold. Seeking capital gain growth in order to draw equity to buy another in 6 months time and if possible, a good rental return.
What would you do if you were in my shoes. Any feedback or advice would be greatly appreciated.
PDP
At 23 my current situation stands like this:
- I work full time on weekdays with a steady income and a second part time job on the weekend. Living at home, so minimal expenses.
- 2 investment properties
- First investment was an apartment (1 bed, 1 bath and car space) in the Eastern suburbs of Melbourne which I purchased off the plan at the end of 2008. I took out a bank guarantee and only paid interest until settlement which was in 2012. Reason for the purchase was I didn't have enough of a deposit but I took advantage of the high FHOG and boost during that time. Lived in it for 6 months and it is now being rented out for $375/wk. I took out a loan and also borrowed some money off my folks. The rent covers the my mortgage but I have to fork out for body corp, rates etc... . And yeah I got to pay back my parents somewhere along the track. I agree my first investment choice could of been better but none the less I made a first step into building my portfolio.
- Second investment was a 1960-70's brick veneer original house on a subdivided block with no body corporate (3 bed, 1 bath, car space) in the City of Whitehorse which was purchased a couple of months into 2013. Renovated bathroom and kitchen, new carpets etc. (not flashy renovations but does the job to house a good tenant. Picked it up for low $400K and is bringing in $380/wk. Another comparable went on the market unrenovated and sold for low $500K a week or so later and now the market has gone hypo in that area however there is some good deals if you wait for the right property to pop up.
I currently have approval from the bank for $550K. My options going through my head at the moment to purchase in the coming weeks to couple of months depending on if the right property comes up (note I will be borrowing the full amount):
- Another subdivided 3 bedder for high $300K to low $400K in the City of Whitehorse.
- Existing house with land and potential to subdivide in Ringwood, Heathmont through to Croydon low to mid $400K.
- Exisiting house with land and potential to subdivide in Heidelberg West, Heidelberg Heights, Bellfield, Epping, Lalor, Thomastown. Anything from low $300K to low $400K.
- Currently paying my folks back slowly, is there a faster way to pay them back in a lump sum by drawing equity from the properties? Am very greatful and lucky that my folks decided to help out from the beginning.
My strategy is to buy and hold. Seeking capital gain growth in order to draw equity to buy another in 6 months time and if possible, a good rental return.
What would you do if you were in my shoes. Any feedback or advice would be greatly appreciated.
PDP
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