Good afternoon ladies and gents,
After many hours of reading through this incredible forum I'm two years into developing my portfolio. But now I'm not sure where to go from here, hopefully someone can offer some insight?
I currently have two properties that are essentially neutral/positive:
IP #1 - Loan: $165,000 - Rent: $250 p/w
IP #2 - Loan: $385,000 - Rent: $480 p/w
I have the loans set up as interest only with an offset account which I throw all my income into with the balance sitting around $30,000 at present.
My predicament is: as I'm still in the acquisition stage of my portfolio, my understanding is to go as 'hard and fast' as possible to gather the largest asset base possible to take advantage of compounding capital growth. If that's the case I would use the $30,000 in the offset account to purchase another property (as I've had insufficient capital growth in the other properties to draw from at this stage).
I'll have to purchase something either either cash flow neutral/positive as I'm on a low income (around $35k p.a) and I'm worried if interest rates go up to say 7-8% I'll probably struggle to service the loans. I'm also worried about having no cash buffer to drawn from in an emergency if I use the offset funds until I recoup the savings.
Essentially, I want to grow my asset base but not sure if it's wise to commit all my available funds at this time however I don't want to sit on the sideline for too long again...
I'm 24 this year and don't have a PPOR (boarding with parents currently) an no bad debt (car or personal loans or credit card debt) to pay down in the meantime.
Any advice my friends? Is there a thing such as too hard too fast?
After many hours of reading through this incredible forum I'm two years into developing my portfolio. But now I'm not sure where to go from here, hopefully someone can offer some insight?
I currently have two properties that are essentially neutral/positive:
IP #1 - Loan: $165,000 - Rent: $250 p/w
IP #2 - Loan: $385,000 - Rent: $480 p/w
I have the loans set up as interest only with an offset account which I throw all my income into with the balance sitting around $30,000 at present.
My predicament is: as I'm still in the acquisition stage of my portfolio, my understanding is to go as 'hard and fast' as possible to gather the largest asset base possible to take advantage of compounding capital growth. If that's the case I would use the $30,000 in the offset account to purchase another property (as I've had insufficient capital growth in the other properties to draw from at this stage).
I'll have to purchase something either either cash flow neutral/positive as I'm on a low income (around $35k p.a) and I'm worried if interest rates go up to say 7-8% I'll probably struggle to service the loans. I'm also worried about having no cash buffer to drawn from in an emergency if I use the offset funds until I recoup the savings.
Essentially, I want to grow my asset base but not sure if it's wise to commit all my available funds at this time however I don't want to sit on the sideline for too long again...
I'm 24 this year and don't have a PPOR (boarding with parents currently) an no bad debt (car or personal loans or credit card debt) to pay down in the meantime.
Any advice my friends? Is there a thing such as too hard too fast?