Thanks Redom, that good to know. I'm currently with NAB and my mortgage broker has suggested that we max out our capacity with them before moving on to other lenders. What do you think?
I'd ask why.
With NAB being used early, you always need a good justification as it generally doesn't make sense from a structured investment lending point of view. They pay the highest trailing commissions ........
I wouldn't be 'tapping' out with NAB unless there's a specific reason to.
You could switch to another lender that takes the NAB debt you have at actual repayments (e.g. AMP, Macquarie, MEbank, Adelaide) and you should be able to extend your journey.
You mean see_change and moneyman 85 hype the Brissie market???
I don't think Brisbane needs hyping right now. If your strategy is capital cities though, and despite some of the challenges Brisbane face right now (mentioned a couple of posts back in this thread); it is hard to see any cap city that is offering much better prospects for investors right now. Just in my humble opinion (and totally happy to be proven wrong as I am not armed with all the macroeconomic facts, per-city), but here's how I'd rate 8 x cap cities right now, on my personal real estate clock (12pm being peak, 6pm trough, 3pm cooling, 9pm rising).
I've also listed my own wildcard factor next to each. The wildcard might be an anecdote that is a caution or opportunity, regardless of the city's spot on the clock.
Again, I'm not armed with all the facts so I'm totally happy to be told I'm wrong! Still a learning/developing investor here!
Sydney - 12 o clock. Way too hot to touch. I'm avoiding it and many others as Cliff mentioned, are too. Like a Bondi spinster in her 50's with too much botox just done; she looks enticing from a distance but you get closer and the shine isn't so appealing..
Melbourne - 1.30. I think we've seen the peak but investors still avoiding as stock comes piling on to the market. This sassy girl wore the best dress of the night to the big parry and everyone has noticed in a good way. Problem is; the dress seemed like a uniqur designer Prada number, but turned out to be an off-the-rack generic Zara dress that many other girls turned up that night also wearing. And, the tag is still sticking out the dress.
Brisbane (and boldly.. The SEQ metro triangle including CG and SC..) - I'd argue around 7.30 which would present as an opportunity for many. But maybe its already around 9 or 10? Brizzi is the nice girl in the back of the classroom who gets good grades and doesn't really get into trouble. Once she left a biro pen in her uniform and it went through the wash, putting ink everywhere. People in class laughed for a couple of days but got over it. All the while she hasn't really paid attention to them and kept her mind on her studies.
Perth - 3 o clock. Most investors would say 'don't touch it!' But to others they say 'well.. One persons trash is another's treasure. Perth is a great singer and has a great voice. Instead of trying to get gigs and build a name for herself in the music industry, she went on one of those many reality TV singing contest shows. Sure, the crowds loved her and she won the damned season finale, but like all those song contest winners, when it came time for her to put out a solo album of her own songs, they all lacked any substance and she became yesterdays news, very quickly.
Adelaide - 7 o clock. Plenty of opportunity on the surface but are the macroeconomic drivers really there? After the auto loss And Olympic dam fallout, does Adelaide have a money-maker it can shake in people's faces? Not tempted. Adelaide is full of charisma, charm, and wit but she can still stand you up on a first, second or 17th date.
Canberra - 4 or 5 o clock. I personally have no experience in this market and whilst I don't discount investing there one day, for now I just don't see the appeal of a market so volatile on account of this increasingly frequent unstable governments. Canberra is a true politician; she's tough, hard to like; deceptive, and you mostly only pay attention to her for the things she doesn't do, versus the things she does do.
Hobart - 7 or 8 maybe? Apart from holidaying herr recently and learning the market; i dont have investing experence. The economy is still in a rough spot but their emerging tourism, foodie, and Baby Boomer retirement housing industry could pick things up again. Hobart is your friends lovely old grandmother who has been baking scones forever. Suddenly scones are 'on-trend' due to moronic hipsters bringing them back and Women's Weekly doing a 6-page special on them this month; making scones a trend again. But who knows how long Granny's prized scones will be coveted for until they fade back into the background again?
Darwin - 12 or 1? Already hot for ages, this market is likely at the peak and investors aren't touching it. Darwin is that obnoxious girl you met in a tour group on a European holiday. She's out of place, loud, and is clearly only there thanks to daddy's very large chequebook.
If the goal is $100k+ passive income. Then taking an approximate rental return of 5%, you would need $2,000,000 portfolio with no debt.
This could mean having 5 houses at $400,000 completely paid off or having $10mil portfolio at 80% lend to achieve this.
So moving forward, with each purchase whether it's in Sydney or Brisbane, calculate how this brings you closer to your goal. You can use different strategies to create equity or cashflow to get you closer too.
It's hard at the start but with each purchase this will become clearer and clearer.
Hope this helps.
My net wealth is 64% property.and 26% cash.and the rest in super and shares..my plan is to change this mix over time to where I can reduce this to a 40-55% property and 45-60% shares and cash.