Hi,
I have a goal to generate a passive income of 75k in 5 years. is it possible .
current situation
Me 48 yo. working full time earning 185k with annual bonus of around 10 %
wife 48 yo. working Pt 2 days per week, earning 12k pa.
children 2. 18 yo in uni and 15 yo in school.
assets 2.4 M, liabilities 1.3M, made up of the following:
ppor value 1.3 M , owe 180k, available to redraw 27k
ip1 value 500k, owe 350k
ip2 value 560k owe 240k
Loc Buffer Loan owe 433k, available redraw 10k
share portfolio value 110k , owe 90k
other shares value 80k, owned outright
I am aggressively paying off my ppor with all ip rents and additional 4k of salary paying off mortgage on top of interest payments. I regularly reduce the limit on my ppor and switch the same amount to my investment buffer loc, which is ued to pay all investment related interest and expenses.
I am on track to have cleared my ppor mortgage by end of 2015, by using the debt recycling strategy above.
However this could be further shortened if I sold the other shares, paid down the mortgage and then switched the limit to the Loc and purchasing some other shares using investment debt. The net borrowings are the same but the ppor mortgage is reduced by 80k.
so far so good but here is the catch. What do I do next ? As my prime focus over past 4 years has been to reduce my ppor, I am reticent to borrow more, but I realise that i need to increase my asset base if I want to benefit in the long term.
I do not want to work longer than I have to and ideally want to be able to hook up a caravan and travel around oz in 5 to 7 yrs once kids have finished uni.
I am looking for options for the next steps. I realise I have a good lvr and lots of equity, and want to capitalise on this without taking unnecessary risk.
Thanks for reading if you got this far!
I have a goal to generate a passive income of 75k in 5 years. is it possible .
current situation
Me 48 yo. working full time earning 185k with annual bonus of around 10 %
wife 48 yo. working Pt 2 days per week, earning 12k pa.
children 2. 18 yo in uni and 15 yo in school.
assets 2.4 M, liabilities 1.3M, made up of the following:
ppor value 1.3 M , owe 180k, available to redraw 27k
ip1 value 500k, owe 350k
ip2 value 560k owe 240k
Loc Buffer Loan owe 433k, available redraw 10k
share portfolio value 110k , owe 90k
other shares value 80k, owned outright
I am aggressively paying off my ppor with all ip rents and additional 4k of salary paying off mortgage on top of interest payments. I regularly reduce the limit on my ppor and switch the same amount to my investment buffer loc, which is ued to pay all investment related interest and expenses.
I am on track to have cleared my ppor mortgage by end of 2015, by using the debt recycling strategy above.
However this could be further shortened if I sold the other shares, paid down the mortgage and then switched the limit to the Loc and purchasing some other shares using investment debt. The net borrowings are the same but the ppor mortgage is reduced by 80k.
so far so good but here is the catch. What do I do next ? As my prime focus over past 4 years has been to reduce my ppor, I am reticent to borrow more, but I realise that i need to increase my asset base if I want to benefit in the long term.
I do not want to work longer than I have to and ideally want to be able to hook up a caravan and travel around oz in 5 to 7 yrs once kids have finished uni.
I am looking for options for the next steps. I realise I have a good lvr and lots of equity, and want to capitalise on this without taking unnecessary risk.
Thanks for reading if you got this far!