Investing dilema opinions/advice

[Terry_w]

Valid point and luckily I know the answer to that in the country I am talking about. Basically any inheritance would go directly to my children, even if no will was written. By law that is what happens, it would not get forfeited to the state.

It sounds good on paper getting in 50K a year in income from rental after having a portfolio of 10 apartments. 10 years is $500k which is certainly very good for something on the side. By then adding apartments would be a yearly thing with that much money coming on.

That is good you know - but I am sure there is more to it than that. What are the tax issues, any family provision type legislation, what if you have no children, what if you have a spouse who is not related to the children, what if your children are non residents etc etc.

 

[Greg Reid]

There is no right answer, if you are comfortable renting in Melbourne (often cheaper/less cash to rent than own in Melbourne due to low rent yields) then you could use your funds as settlement for purchasing IP's either in Aust or Czech.

If there is a keen desire to live in your own PPOR, then use most of your funds as settlement and borrow the rest. Then save again via offset and get your PPOR revalued and refinanced to set up a loan facility for investing purposes.

I suggest you see a good broker, what one bank says they will lend you will not be the same as another. Based on what you said, it ranges from about $340k to $505k for a PPOR. This will be different again if you are considering continuing to rent and then buying an IP. You need to know the numbers better so you can clearly see the options available to you and then make a decision based on your own short and long term goals.

 

[Zos]

Thanks for the reply Greg. Your points are on the money. Had a good think about our situation and I think we need to find a PPOR first and start paying off our property than someone elses. I would love to sell off our new apartment OS and use the funds here but the wife has other ideas

I think the areas we like and would like to live are Mentone, Parkdale, Aspendale, Mordialloc.

Good schools, good transport, beach don't think you can go wrong in these locations where long term is concerned.

You are correct, we will need to see a broker to get the best deal. Have a friend who recommended me one if that falls through might contact you.

Then as you say buy IP after from savings. This sounds like the most logical way to go about it. Just have to work out if to keep money in offset account or better to use it to buy IP. It all comes down to how much extra you pay in interest as opposed how much rental return you get.

I hate to pay rent longer than I have to and at $2080 per month that would work better going towards my mortgage than someone elses.