Hi the learned once,
I’ve been reading and analyzing all your expert comments for a while on this forum. Now I need your help with few questions as I’m ready to get my first IP.
The Property:
PPOR – 350,000
Debt on PPOR – 30,000
My Thinking/Plan:
Have regular income in 10 Years from properties.
I am thinking to buy my first property with high yield 6-7% and low debt, So property around 200 k. I would like to pay of my first investment property as soon as possible (3 years time hopefully). After it is paid off from the rent of the first IP, assuming around 10,000 per annum I would buy 2 another properties. The idea is to earn the rent of First IP and put very less out of pocket money to manage second and third IP.
So timeline may look like
2010 First IP
2013 Pay off First IP & Buy Second and Third IP – Rent Income of 10,000/Annum after paying IP 1
2015 Pay off Second IP & Buy Fourth IP - Rent Income of 20,000/Annum after paying IP 1 & 2
2017 Pay off Third IP & Buy Fifth IP - Rent Income of 30,000/Annum after paying IP 1, 2 and 3
2019 Pay Off Fourth IP - Rent Income of 40,000/Annum after paying IP 1, 2, 3 and 4
2020 Pay Off Fifth IP - Rent Income of 50,000/Annum after paying IP 1, 2, 3, 4 and 5
As I am thinking to follow this path – I believe I’ve to go with small mortgages and high yield properties. I know with the equity in the PPOR I can take risk and buy properties with less yield and more capital growth but I’m moderate risk taker and would like to keep my LVR less than 50% all the time if possible to achieve this 10 year plan.
Note: Just to inform my repayment capacity and income - I’ve paid 250,000 mortgage on my PPOR in 3 years.
The first Property:- Thinking to spend around 200k (Maximum 300k) get a studio or 1 bedroom around Melbourne CBD.
- The suburb I’m considering is around Footscray and Parhan.
- I did look at Carlton but it has hundreds of similar properties so will be hard to sell it in the future, I believe.
The Questions:
- Suggestions about the plan – Will it work? Do I need to change anything?
- Suggestions about Suburbs for studios or 1 Bedroom?
- Should I buy a 2 Bedroom around 300k initially?
- Should I go country side for high yield? (Personally not very keen)
- Is the time right to buy as an investor? Should I wait another 2-3 months?
- What are the main expenses I need to consider in an IP? (IP Mgt. Fees, Strata, Body Corp, Insurance, Water, Bank Fees anything else????)
I hope I’ve put in enough details here (may be too much). Please do not hesitate to ask or criticize anything as this is what I’m expecting from you.
Thanks in advance for your help….
I’ve been reading and analyzing all your expert comments for a while on this forum. Now I need your help with few questions as I’m ready to get my first IP.
The Property:
PPOR – 350,000
Debt on PPOR – 30,000
My Thinking/Plan:
Have regular income in 10 Years from properties.
I am thinking to buy my first property with high yield 6-7% and low debt, So property around 200 k. I would like to pay of my first investment property as soon as possible (3 years time hopefully). After it is paid off from the rent of the first IP, assuming around 10,000 per annum I would buy 2 another properties. The idea is to earn the rent of First IP and put very less out of pocket money to manage second and third IP.
So timeline may look like
2010 First IP
2013 Pay off First IP & Buy Second and Third IP – Rent Income of 10,000/Annum after paying IP 1
2015 Pay off Second IP & Buy Fourth IP - Rent Income of 20,000/Annum after paying IP 1 & 2
2017 Pay off Third IP & Buy Fifth IP - Rent Income of 30,000/Annum after paying IP 1, 2 and 3
2019 Pay Off Fourth IP - Rent Income of 40,000/Annum after paying IP 1, 2, 3 and 4
2020 Pay Off Fifth IP - Rent Income of 50,000/Annum after paying IP 1, 2, 3, 4 and 5
As I am thinking to follow this path – I believe I’ve to go with small mortgages and high yield properties. I know with the equity in the PPOR I can take risk and buy properties with less yield and more capital growth but I’m moderate risk taker and would like to keep my LVR less than 50% all the time if possible to achieve this 10 year plan.
Note: Just to inform my repayment capacity and income - I’ve paid 250,000 mortgage on my PPOR in 3 years.
The first Property:- Thinking to spend around 200k (Maximum 300k) get a studio or 1 bedroom around Melbourne CBD.
- The suburb I’m considering is around Footscray and Parhan.
- I did look at Carlton but it has hundreds of similar properties so will be hard to sell it in the future, I believe.
The Questions:
- Suggestions about the plan – Will it work? Do I need to change anything?
- Suggestions about Suburbs for studios or 1 Bedroom?
- Should I buy a 2 Bedroom around 300k initially?
- Should I go country side for high yield? (Personally not very keen)
- Is the time right to buy as an investor? Should I wait another 2-3 months?
- What are the main expenses I need to consider in an IP? (IP Mgt. Fees, Strata, Body Corp, Insurance, Water, Bank Fees anything else????)
I hope I’ve put in enough details here (may be too much). Please do not hesitate to ask or criticize anything as this is what I’m expecting from you.
Thanks in advance for your help….