Hi everyone,
A lot has happened since my first post last year and I wanted to share it with you. I was also hoping to hear your thoughts and opinions on my next steps, as I found your previous advice incredibly helpful (and surprising - who would've thought I'd drop the idea of buying a PPOR first up and instead start investing). It really paved the way for my investment journey.
Recap:
IP #1 2014: 1.5 year old Townhouse in Melbourne's North (Broadmeadows), 5 mins walk to station, small block of townhouses and very low strata.
Purchase price: $292, 000, IO
Loan $284, 000
5.85% rental yield
Pros:
Was able to secure tenants within 4 days
Close to neutral cash flow (so far + $30, lol, after agent fees, etc.)
Have been able to save another $30, 000
May soon be able to increase rent by $10 - $20 a week
Learning experience
Cons:
Concerns about short-term capital gains
Moving forward, one of my biggest priorities/lessons is focusing more on capital growth than I have with my last purchase while still hopefully remaining fairly close to cash flow neutral. I need to be able to access short-term equity for subsequent purchases (if only it were so easy?!). I've been a fan of Rixter's approach from SS and have noted most of his purchases are < 350k and across Australia, which is probably more in line with my risk profile.
My goal
My goal is to purchase 10 properties (preferably newer townhouses, villas and established units with low body corp) X <350k in metro AU (prefer Melbourne and Sydney within 20km) areas requiring minor renovations with a view to achieving 100k (today's money) in rental income over the next 10-20 years and being able to purchase a blue chip PPOR in inner city Melbourne.
Current position
Earn $84, 000 p/a
Save $2000-2500 per month
Total rental income p/a from IP #1 $17, 160 (before agents fees, etc)
Currently renting in Sydney, very cheap rent
No PPOR
Partner will start investing in a few years
Next steps
Given I have been able to save $30, 000 and likely $40, 000 in a few months, do you think that I should begin searching for IP # 2?
Based on my research on this forum and other sources, I'm particularly interested in: Coorparoo, Cleveland, Clontarf (QLD), Boronia, Albion, Sunshine, Hoppers Crossing (VIC) and Mount Druitt (NSW).
These all meet my criteria for cost <350k, yield and capital gains. Had considered Lilydale and Dandenong, as the latter is noted as an activity hub in Melbourne 2030 but 35km seems too far from CBD.
OR
Should I hold off, save a bigger deposit, furiously mad read more Lomas and invest more into my strategy?
I've sent my mortgage broker an email about finance (thanks Rolf!), so this will also influence my future direction.
Thank you for taking the time to read my post, much appreciated!
Android
A lot has happened since my first post last year and I wanted to share it with you. I was also hoping to hear your thoughts and opinions on my next steps, as I found your previous advice incredibly helpful (and surprising - who would've thought I'd drop the idea of buying a PPOR first up and instead start investing). It really paved the way for my investment journey.
Recap:
IP #1 2014: 1.5 year old Townhouse in Melbourne's North (Broadmeadows), 5 mins walk to station, small block of townhouses and very low strata.
Purchase price: $292, 000, IO
Loan $284, 000
5.85% rental yield
Pros:
Was able to secure tenants within 4 days
Close to neutral cash flow (so far + $30, lol, after agent fees, etc.)
Have been able to save another $30, 000
May soon be able to increase rent by $10 - $20 a week
Learning experience
Cons:
Concerns about short-term capital gains
Moving forward, one of my biggest priorities/lessons is focusing more on capital growth than I have with my last purchase while still hopefully remaining fairly close to cash flow neutral. I need to be able to access short-term equity for subsequent purchases (if only it were so easy?!). I've been a fan of Rixter's approach from SS and have noted most of his purchases are < 350k and across Australia, which is probably more in line with my risk profile.
My goal
My goal is to purchase 10 properties (preferably newer townhouses, villas and established units with low body corp) X <350k in metro AU (prefer Melbourne and Sydney within 20km) areas requiring minor renovations with a view to achieving 100k (today's money) in rental income over the next 10-20 years and being able to purchase a blue chip PPOR in inner city Melbourne.
Current position
Earn $84, 000 p/a
Save $2000-2500 per month
Total rental income p/a from IP #1 $17, 160 (before agents fees, etc)
Currently renting in Sydney, very cheap rent
No PPOR
Partner will start investing in a few years
Next steps
Given I have been able to save $30, 000 and likely $40, 000 in a few months, do you think that I should begin searching for IP # 2?
Based on my research on this forum and other sources, I'm particularly interested in: Coorparoo, Cleveland, Clontarf (QLD), Boronia, Albion, Sunshine, Hoppers Crossing (VIC) and Mount Druitt (NSW).
These all meet my criteria for cost <350k, yield and capital gains. Had considered Lilydale and Dandenong, as the latter is noted as an activity hub in Melbourne 2030 but 35km seems too far from CBD.
OR
Should I hold off, save a bigger deposit, furiously mad read more Lomas and invest more into my strategy?
I've sent my mortgage broker an email about finance (thanks Rolf!), so this will also influence my future direction.
Thank you for taking the time to read my post, much appreciated!
Android