Hi All,
Mine and my wife's investment strategy to date has focused on long term hold in order to both help fund our retirement and to put something in place in case we need to help out our children one day. I'm 32 , my wife is 33 and our son is 3 so we don't need a quick return to achieve this, more so a safe gradual return.
This is what we have at the moment...
PPOR - St George area of Sydney, 3br house purchased in 2007 - owe 460k, worth 850-900k.
IP 1 - Berkeley NSW, 4br house + 1br granny flat purchased in April 2014 for 400k, owe 360k, worth around 420k. Combined rent $570 p.w.
IP 2 - Manly West QLD, 3 br house purchased in August 2014 for 419k, worth around 450k, owe 384k. Rental appraisal $450 - 460 p.w. Listed @ $460 1 week ago, had a couple of inspections. Might lower to $450 to appeal to tenants who search 400 - 450 range.
We have approx. 150k in offset against the PPOR and the bank says we can borrow another 350 - 370k for another IP assuming a rental income of $400 p.w. on said IP. Our combined income is currently around 170k.
Now we'd like to focus on getting ourselves into a bigger house with at least 4 bedrooms and a double garage. Our PPOR is only on a 400sqm block that isn't really big enough to extend on. I guess we could knock down the existing house and build a new house but the existing house is now 90% renovated and would that not be a bit of a waste of a nice little house? My wife insists on staying in the St George area of Sydney for various reasons so that means if we were to move into a bigger house it's going to cost a lot of money.
Ideally if we were to move house I'd like our current PPOR to become an IP as opposed to selling it but I could live with selling it if this is the only viable option.
So I'm unsure how to proceed from here. I don't think buying another IP like the existing ones will get us there anytime soon. I need to put something in place that will generate a much larger return. Perhaps a succession of reno + flips or subdivision? I'm open to suggestions.
Cheers,
Dave
Mine and my wife's investment strategy to date has focused on long term hold in order to both help fund our retirement and to put something in place in case we need to help out our children one day. I'm 32 , my wife is 33 and our son is 3 so we don't need a quick return to achieve this, more so a safe gradual return.
This is what we have at the moment...
PPOR - St George area of Sydney, 3br house purchased in 2007 - owe 460k, worth 850-900k.
IP 1 - Berkeley NSW, 4br house + 1br granny flat purchased in April 2014 for 400k, owe 360k, worth around 420k. Combined rent $570 p.w.
IP 2 - Manly West QLD, 3 br house purchased in August 2014 for 419k, worth around 450k, owe 384k. Rental appraisal $450 - 460 p.w. Listed @ $460 1 week ago, had a couple of inspections. Might lower to $450 to appeal to tenants who search 400 - 450 range.
We have approx. 150k in offset against the PPOR and the bank says we can borrow another 350 - 370k for another IP assuming a rental income of $400 p.w. on said IP. Our combined income is currently around 170k.
Now we'd like to focus on getting ourselves into a bigger house with at least 4 bedrooms and a double garage. Our PPOR is only on a 400sqm block that isn't really big enough to extend on. I guess we could knock down the existing house and build a new house but the existing house is now 90% renovated and would that not be a bit of a waste of a nice little house? My wife insists on staying in the St George area of Sydney for various reasons so that means if we were to move into a bigger house it's going to cost a lot of money.
Ideally if we were to move house I'd like our current PPOR to become an IP as opposed to selling it but I could live with selling it if this is the only viable option.
So I'm unsure how to proceed from here. I don't think buying another IP like the existing ones will get us there anytime soon. I need to put something in place that will generate a much larger return. Perhaps a succession of reno + flips or subdivision? I'm open to suggestions.
Cheers,
Dave