starting our portfolio - advice needed for best use of deposit.

My girlfriend and I have $150K to utilise and have serviceability of $650-$700. We are looking buy our first IP at a mid-level price point (say $400K), but want to understand the best way to utilise this sizeable deposit to secure multiple properties in a short space of time.

We're looking for thought starters on how best to use this money to start a portfolio that will offer solid CG with the ability to move to CF neutral in a reasonably short timeframe. Regions we've been considering include Penrith, Newcastle, Toowoomba and the Brisbane LGA.

Obviously we will be forming a long-term plan but any advice on number of properties you'd look at, locations and types of properties would be great. We'd like to have a portion kept as buffer/offset as well. Cheers
 
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My girlfriend and I have $150K to utilise and have serviceability of $650-$700. We are looking buy our first IP at a mid-level price point (say $400K), but want to understand the best way to utilise this sizeable deposit to secure multiple properties in a short space of time.

We're looking for thought starters on how best to use this money to start a portfolio that will offer solid CG with the ability to move to CF neutral in a reasonably short timeframe. Regions we've been considering include Penrith, Newcastle, Toowoomba and the Brisbane LGA.

Obviously we will be forming a long-term plan but any advice on number of properties you'd look at, locations and types of properties would be great. We'd like to have a portion kept as buffer/offset as well. Cheers

Basicallly you would want to go as high LVR as possible early on and gradually lower the LVR if needed. Try to get the LMI added to the loan.

You also want properties that potentially grow in value. Factor this into the lender you choose. If the value increases you may be able to increase the loan and then use the funds released for deposit for the next one.

Also consider ownership strategies - legal reasons as well as stretching the max borrowability. Maybe consider private loan agreements with the deposits between you both. This could assist with tax aspects down the track.
 
Think about what portfolio value you want to achieve and that will determine your initial LVRs and borrowing strategy etc.
 
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