Ok, so I've been doing the usual and reading a decent amount of Real Estate and Property Investing. It seems it is essential to build a plan, so you have something to aim for and to keep yourself on the right track.
I thought I might post up my current situation with my partner with details of our financials and where I want us to do/be in the future.
Myself (23): Apprentice Plumber ($36,000) & Operate Machinery Weekends ($15,000-20,000).
Partner (20): Retail ($35,000) & Bookkeeping for her father ($10,000)
So Annually, we both earn at least $90,000 yearly put together.
Our Debt
$33,000 @ ~6.50% Loan.
$293,250 @ 5.66% IO Mortgage.
We have no credit cards, own our car etc.
We are currently paying off the $33,000 loan with $500 a week going into it (want it cleared in just under 2 years). Trying to clear this one asap! We are currently living at my partners parents house so while we are out of our house with tenants we can afford to pay this much.
Our Property:
Location: Camden
Specs: 4 Bedroom, 1 Bathroom, Single Garage
Size: 720sqm
Price: $345,000
Current Rent: $325 per/wk (Market is $350)
Next 10 Years: +4.5%
We were looking for our PPOR when we bought this home, and since we bought it our plans have changed and we want Investment Properties. Otherwise we would have bought in a different area.
We have to move in for a 6 month period to satisfy the FHOG then we will most likely be moving back into the place we are at now. Get new renters in after we fix the house up a little and put the rent up to market value.
I want us to have the oppurtunity to buy another IP in the next 2 years. I know that westpac give 95% LVR to existing customers of 6+ Months but isn't there more risk with borrowing this sort of money and paying MI?
I am after peoples opinions, help and guidance. Are we looking into IP too soon? Currently I have great motivation to get into real estate and begin our IP journey but when I look at our funds, I can't see how we can do it?
Sorry in advance for the long post, and all the information is all over the place!!!
Regards,
Andrew (Confused Soul )
P.S. Our Plan is to have 10 IP's by 2016...
I thought I might post up my current situation with my partner with details of our financials and where I want us to do/be in the future.
Myself (23): Apprentice Plumber ($36,000) & Operate Machinery Weekends ($15,000-20,000).
Partner (20): Retail ($35,000) & Bookkeeping for her father ($10,000)
So Annually, we both earn at least $90,000 yearly put together.
Our Debt
$33,000 @ ~6.50% Loan.
$293,250 @ 5.66% IO Mortgage.
We have no credit cards, own our car etc.
We are currently paying off the $33,000 loan with $500 a week going into it (want it cleared in just under 2 years). Trying to clear this one asap! We are currently living at my partners parents house so while we are out of our house with tenants we can afford to pay this much.
Our Property:
Location: Camden
Specs: 4 Bedroom, 1 Bathroom, Single Garage
Size: 720sqm
Price: $345,000
Current Rent: $325 per/wk (Market is $350)
Next 10 Years: +4.5%
We were looking for our PPOR when we bought this home, and since we bought it our plans have changed and we want Investment Properties. Otherwise we would have bought in a different area.
We have to move in for a 6 month period to satisfy the FHOG then we will most likely be moving back into the place we are at now. Get new renters in after we fix the house up a little and put the rent up to market value.
I want us to have the oppurtunity to buy another IP in the next 2 years. I know that westpac give 95% LVR to existing customers of 6+ Months but isn't there more risk with borrowing this sort of money and paying MI?
I am after peoples opinions, help and guidance. Are we looking into IP too soon? Currently I have great motivation to get into real estate and begin our IP journey but when I look at our funds, I can't see how we can do it?
Sorry in advance for the long post, and all the information is all over the place!!!
Regards,
Andrew (Confused Soul )
P.S. Our Plan is to have 10 IP's by 2016...