Hi SS Gurus,
I need your advice regarding my current situation. you may have passed through the same situation before. I can get another loan, I can service another loan, but I am worried that I may be doing something wrong.
I just started investing in IP this year, I have the concept of buying cheaper properties that can be neutral to positive, so I went away from Sydney and bought in QLD. My strategy is to buy and hold for long time. My basic target is 12 properties totalling 3.5M, leave them to double, sell half and pay off the rest or leave in offset. 2 properties for the kids to help them start their life strong. and 4 fully paid for myself and my wife to live from the rent. I need around 1K in today's dollars a week.
I started my research last year, and this year I bought 2 properties in QLD. one in Logan- Waterford West for 290 renting for 350 (yes it is a bit high price, it is a 3,2,2 with 24meter frontage in a very clean and neat condition ? I was a bit emotional to be honest, but thank God tenants are very good and looks very well after the property), and one in Ipswich ? Bellbird park for 235 renting for 300. both houses. I am earning around 100K's and my wife around 30-40. We do not have any other dept., no car loans, no credit cards,?etc. we have done well with our PPOR, bought for 350 in 2011 valued at 550, remaining 165. Our target is to pay off our PPOR in the next 3 years . My LVR is 68%.
I am not sure if I should go for another IP at the moment or not. I can still buy in the price range of 300K?s. I am worried that I may be doing something wrong and stretching myself so much. I have offset buffer to service all loans for 24 months on 7% Interest.
What is the safe LVR?. I am still learning. Until now, all looks good, both houses are rented to good tenants, I am not paying anything from my pocket until now, rent is covering the loan + council rates. also the 2nd house was well below the market value, so it is expected get around 30-40K when valuated.
I hope you can have a look and advise, as I want to proceed to purchase more properties, but a bit worried that there is something i am missing.
Also when will I hit the wall of no more loans for me?
Thanks
Ram
I need your advice regarding my current situation. you may have passed through the same situation before. I can get another loan, I can service another loan, but I am worried that I may be doing something wrong.
I just started investing in IP this year, I have the concept of buying cheaper properties that can be neutral to positive, so I went away from Sydney and bought in QLD. My strategy is to buy and hold for long time. My basic target is 12 properties totalling 3.5M, leave them to double, sell half and pay off the rest or leave in offset. 2 properties for the kids to help them start their life strong. and 4 fully paid for myself and my wife to live from the rent. I need around 1K in today's dollars a week.
I started my research last year, and this year I bought 2 properties in QLD. one in Logan- Waterford West for 290 renting for 350 (yes it is a bit high price, it is a 3,2,2 with 24meter frontage in a very clean and neat condition ? I was a bit emotional to be honest, but thank God tenants are very good and looks very well after the property), and one in Ipswich ? Bellbird park for 235 renting for 300. both houses. I am earning around 100K's and my wife around 30-40. We do not have any other dept., no car loans, no credit cards,?etc. we have done well with our PPOR, bought for 350 in 2011 valued at 550, remaining 165. Our target is to pay off our PPOR in the next 3 years . My LVR is 68%.
I am not sure if I should go for another IP at the moment or not. I can still buy in the price range of 300K?s. I am worried that I may be doing something wrong and stretching myself so much. I have offset buffer to service all loans for 24 months on 7% Interest.
What is the safe LVR?. I am still learning. Until now, all looks good, both houses are rented to good tenants, I am not paying anything from my pocket until now, rent is covering the loan + council rates. also the 2nd house was well below the market value, so it is expected get around 30-40K when valuated.
I hope you can have a look and advise, as I want to proceed to purchase more properties, but a bit worried that there is something i am missing.
Also when will I hit the wall of no more loans for me?
Thanks
Ram
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