After buying my PPOR a few months back and since speaking with a broker, my borrowing capacity is not very high. I could maybe stretch another 90k to 150k on top of where I am now. In hindsight I should have continued renting and bought IP's instead, but I have made my bed. My problem is that having done extensive reading and learning these past couple of years I'm now pretty eager to get an IP in Brisbane. The fear of missing the boat is definitely there but I'm willing to do something about it.
So I'm here to crowdsource ideas on what I can do do expedite my savings rate/get investing ready sooner. Without having done any real due diligence I anticipate that the property alone is going to be in the vicinity of 300k to 350k (to acquire something that is worthwhile).
Here are the ideas floating around in my my head at the moment:
Other things worth mentioning:
So to the collective Somersoft hive-mind - what else can/should I be doing?
So I'm here to crowdsource ideas on what I can do do expedite my savings rate/get investing ready sooner. Without having done any real due diligence I anticipate that the property alone is going to be in the vicinity of 300k to 350k (to acquire something that is worthwhile).
Here are the ideas floating around in my my head at the moment:
- Add value to existing PPOR (in progress via renovations). Tap into any extra equity that results from this.
- Put a tenant in the second bedroom but remain as my PPOR (aiming to do this in 2 months time).
- Get a depreciation report done once a tenant is in to minimise my tax bill.
- Alternatively, convert the property into an IP and rent somewhere else.
- Cancel the 16k credit card capacity I have before applying for more finance.
- Get a second job (not an ideal scenario but something I would consider)
Other things worth mentioning:
- I'm sitting at around 86%ish LVR on PPOR (from memory)
- I'm impatient
- If I put a tenant in the spare room my mortgage out of pockets would then become approx $16k p/a. - $1k of tax benefits from depreciation report (complete and utter guess) = net out of pocket $15k
- If I move out and fully lease the property my mortgage out of pockets would then become approx $7k (negatively geared) + $10k to pay my rent (assume 200pw) + $1k worth of disruption (guess) - $4,500 annual tax benefits = net $13.5k out of pocket. These are guesstimations.
- Ideally would like to follow a yardney approach to investing (buy into markets at the right time (i.e. Brisbane), buy below market value, buy something that I can add value to, in an area with consistent demand, limits to supply + infrastructure drivers). Capital gain being the objective.
So to the collective Somersoft hive-mind - what else can/should I be doing?