Hello everyone! So following our PPR valuation (HTW, not a RA appraisal), this is our position:
PPR $585,000
Owe $434,000
Estimated 2013 taxable incomes:
Husband: $60k+
Me: $40k+
We have been self employed for 4 years (2013 will be our fifth return in self employment)
Our strategy is to buy and hold for the long term with casflows increasing our passive income, grow our portfolio, sell down a few and retire in 10-12 years.
We built last year on land we bought in 2011 on a 90% LVR, so if we go to 90% to buy an IP, we have $92,500 for deposit and costs.
Bank has said they could lend is a total of $300-$350k for an IP if our 2013 income looks good. As our risk profile absolutely needs our first IP to be a positive cashflow IP, we are going around & around in circles looking for the right area to invest in without negative gearing and staying sub $300k.
I'm really liking the prospects for certain suburbs in Perth (Cooloongup/Rockingham/Hillman/Armadale even) Some of these have already started to move. They have a lot of growth drivers & potential IMHO.
We've been looking for a solid 3 bedder on a decent size block with dev potential (isn't everyone these days with new planning laws in play!). They seem to be quite rare in these areas, more so villas and new builds on tiny blocks are popping up everywhere. As they are so new and many aren't built yet I wonder how the rental market will be impacted by all of the newer stuff? To spend up to $350k, we would struggle due to a lower yield and we would have no buffer in place.
Are we targeting the wrong type of property? For those that know these areas, is it these smaller villa/unit types of property that are in demand more so than a house in these outer Perth suburbs?
I worry that if we save and wait til we have a bigger IP budget, we will miss the boat in Perth. Have also been looking in southern Adelaide and Western Sydney but there's no $$$ left once purchased to improve an IP for higher rent return & value.
Is it really so hard to manufacture cashflow and growth sub $300k total??
Any advice would be very appreciated
PPR $585,000
Owe $434,000
Estimated 2013 taxable incomes:
Husband: $60k+
Me: $40k+
We have been self employed for 4 years (2013 will be our fifth return in self employment)
Our strategy is to buy and hold for the long term with casflows increasing our passive income, grow our portfolio, sell down a few and retire in 10-12 years.
We built last year on land we bought in 2011 on a 90% LVR, so if we go to 90% to buy an IP, we have $92,500 for deposit and costs.
Bank has said they could lend is a total of $300-$350k for an IP if our 2013 income looks good. As our risk profile absolutely needs our first IP to be a positive cashflow IP, we are going around & around in circles looking for the right area to invest in without negative gearing and staying sub $300k.
I'm really liking the prospects for certain suburbs in Perth (Cooloongup/Rockingham/Hillman/Armadale even) Some of these have already started to move. They have a lot of growth drivers & potential IMHO.
We've been looking for a solid 3 bedder on a decent size block with dev potential (isn't everyone these days with new planning laws in play!). They seem to be quite rare in these areas, more so villas and new builds on tiny blocks are popping up everywhere. As they are so new and many aren't built yet I wonder how the rental market will be impacted by all of the newer stuff? To spend up to $350k, we would struggle due to a lower yield and we would have no buffer in place.
Are we targeting the wrong type of property? For those that know these areas, is it these smaller villa/unit types of property that are in demand more so than a house in these outer Perth suburbs?
I worry that if we save and wait til we have a bigger IP budget, we will miss the boat in Perth. Have also been looking in southern Adelaide and Western Sydney but there's no $$$ left once purchased to improve an IP for higher rent return & value.
Is it really so hard to manufacture cashflow and growth sub $300k total??
Any advice would be very appreciated