Hi all,
I may be in the wrong area of the forum but I would like to get some advice and opinions on what to do with the deposit I have saved up.
My situation is that we are currently renting and are very keen to buy our first home in Australia now we have residency. We have got $55k saved currently and can add to that over the next year if needed. I am a fifo worker at the moment and expect that to carry on for at least until the end of 2015. I am earning around $9k per month take home.
We have a house in the UK which we have been renting out since we left there a few years ago. It currently is cash flow +ve giving us about $250 in our pocket before tax per month.
I would ideally like to take the oppertunity we have with the money we have and buy a PPOR at around $430k (to stay under the FHOG and avoid paying stamp duty. I live in WA) and also buy a cheap investment property around the $220k mark.
To achieve both of these I would have to buy both at 5% deposit and have spoken to my mortgage broker (also a property investor) about this who tells me that if I want to do this, the outlay for the PPOR will be $27600 buying a house at $430k and the outlay for an IP at $250k would be $29k.
In the UK I have equity of about $75k if I sold up and I believe I could remortgage this property to release a further $35k if I needed to. I added that point in case it is something that would help you advise.
My wife is keen to use the deposit we have solely into the PPOR and buy something nicer and bigger. I am more concerned about expanding a portfolio and learning the ropes of investing. The house in the UK was not bought solely as an IP and is now rented to my brother with no manager so I do not really see that I am learning many skills here and investing is something I want to master so I can achieve my goal of having the option to retire from work in 9 years (aged 45)
A short term goal is to own our own home in our favorite holiday destination of Florida and spend xmas 2018 there. This house would also be an IP but aimed at holiday makers rather than long term lets.
I am asking for advice as my wife and I are clashing heads here a little and I do not want to do the wrong thing by my family. We have two boys who are 8 and 12.
My wife also works and is earning around $500 per week take home and often even more. Sometimes $1000 per week. If I were to leave the FIFO role and work in Perth I would be earning about $5300 per month after tax.
I do not have to spend as much as that in the IP, I simply want to buy something I can make some money from and learn the basics and actually take the plunge. I would like something near to where I live so I can add sweat equity if I need to or want to and will be looking for a +ve cash flow property or at least neutrally geared. I know that because my UK property is nicely +ve I can afford a few mistakes with the IP.
I strongly feel that if we do not make this move now to invest it will be something that we will never do and I will enter into a life of averageness working in a job for the rest of my life.
Am I looking to over stretch us? I know lots of people advise about not stretching too much and do not get over leveraged. I have listened to easily over 200 hours of podcasts about property from Everyday Property Investing and Rich Dad Poor Dad and others and I have them on repeat over and over in the car as I drive for sometimes 6 hours a day 19 days in a row so I do feel very very educated and very ready to make the move.
What would you do?
I may be in the wrong area of the forum but I would like to get some advice and opinions on what to do with the deposit I have saved up.
My situation is that we are currently renting and are very keen to buy our first home in Australia now we have residency. We have got $55k saved currently and can add to that over the next year if needed. I am a fifo worker at the moment and expect that to carry on for at least until the end of 2015. I am earning around $9k per month take home.
We have a house in the UK which we have been renting out since we left there a few years ago. It currently is cash flow +ve giving us about $250 in our pocket before tax per month.
I would ideally like to take the oppertunity we have with the money we have and buy a PPOR at around $430k (to stay under the FHOG and avoid paying stamp duty. I live in WA) and also buy a cheap investment property around the $220k mark.
To achieve both of these I would have to buy both at 5% deposit and have spoken to my mortgage broker (also a property investor) about this who tells me that if I want to do this, the outlay for the PPOR will be $27600 buying a house at $430k and the outlay for an IP at $250k would be $29k.
In the UK I have equity of about $75k if I sold up and I believe I could remortgage this property to release a further $35k if I needed to. I added that point in case it is something that would help you advise.
My wife is keen to use the deposit we have solely into the PPOR and buy something nicer and bigger. I am more concerned about expanding a portfolio and learning the ropes of investing. The house in the UK was not bought solely as an IP and is now rented to my brother with no manager so I do not really see that I am learning many skills here and investing is something I want to master so I can achieve my goal of having the option to retire from work in 9 years (aged 45)
A short term goal is to own our own home in our favorite holiday destination of Florida and spend xmas 2018 there. This house would also be an IP but aimed at holiday makers rather than long term lets.
I am asking for advice as my wife and I are clashing heads here a little and I do not want to do the wrong thing by my family. We have two boys who are 8 and 12.
My wife also works and is earning around $500 per week take home and often even more. Sometimes $1000 per week. If I were to leave the FIFO role and work in Perth I would be earning about $5300 per month after tax.
I do not have to spend as much as that in the IP, I simply want to buy something I can make some money from and learn the basics and actually take the plunge. I would like something near to where I live so I can add sweat equity if I need to or want to and will be looking for a +ve cash flow property or at least neutrally geared. I know that because my UK property is nicely +ve I can afford a few mistakes with the IP.
I strongly feel that if we do not make this move now to invest it will be something that we will never do and I will enter into a life of averageness working in a job for the rest of my life.
Am I looking to over stretch us? I know lots of people advise about not stretching too much and do not get over leveraged. I have listened to easily over 200 hours of podcasts about property from Everyday Property Investing and Rich Dad Poor Dad and others and I have them on repeat over and over in the car as I drive for sometimes 6 hours a day 19 days in a row so I do feel very very educated and very ready to make the move.
What would you do?