My situation is very similar to some of the people in the post;
http://somersoft.com/forums/showthr... Thanks in advance for any comments/advise.
http://somersoft.com/forums/showthr... Thanks in advance for any comments/advise.
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as an aside,are the loans all with the one lender ?
ta
rolf
1. Subdivision takes a long time, a property with subdivision potential has crap yield. Cash outflow is huge - so it better be worth your while. Perhaps reconsider given you are on a single income?
2. Why not get a property with strong rental and potential value-add? They exist.
3. Perhaps this is a good option.
Are you cross collateralised?
How is your current cashflow/serviceability?
Other than that, I will sugggest organise draw down equity/top up LOC from PPOR (CMIIW 80% = another $57k) and use that for next purchase.
I'm in somewhat similar situation to yours. Based on my calculations the asset value is enough to generate about 70k per year (npv) in 20 years time. To me this decent enough if your super is healthy.
I would suggest instead of buying another IP load yourself with insurances first - death, trauma, ip + good private health insurance. Protect your eggs first.
Then do a budget. See how much you can afford to invest. I'm slowly getting into shares to spread my risks but not confident at all. I'm happy to share my excel workings if you PM me your email address.
Keep us your progress allsuccess, as you can see your condition is quite similar with others. You can share and learn from each other experience..Very good point thanks. Also, I've considered paying down some of the PPR loan with cash in the bank and turn that into a LOC.
In terms your serviceability question, at this stage, I've been pre approved for the next IP for 425K loan (considering all my other commitments/income)
IP with super only lasts for 2 years (generally). You may want to go outside for that.I do have insurance (death/IP) via super.
Keep us your progress allsuccess, as you can see your condition is quite similar with others. You can share and learn from each other experience..
Bare in mind contingency plan is important because you have young kids, if you want to pay down PPOR (which is good for reduction non deduct loan).
I was think the other day, you can diversify to another investment vehicle that enable higher return than IP. But you need to know what you're doing..
example : manage funds/share
If you're not have time for learn, better stick to positive IP for couple years. Learn about subdivision and develop is great idea as well. Once the money is ready, the knowledge/skill is there as well.
IP with super only lasts for 2 years (generally). You may want to go outside for that.
From an estate planning perspective...
have you considered ownership structure for the next one? With a non working spouse there may be some opportunities for some tax savings.
Other lending strategies between spouses entities?
Consider some asset protection strategies.
Do you each have a valid and up to date will in place?
each have a enduring power of attorney and enduring guardianship?
Considered how your insurance is held who beneficiary should be?
Superannuation succession? Binding death benefit nominations in place? Who should be paid - spouse or to the estate?
Spousal sale strategies to increase deductible borrowings and pay down the PPOR?