What would YOU do?

Hello SS

I thought i would make a post and get some opinions from a lot of experienced investors and people who have gone before me down this road .

This is my first post after spending almost 3 years lurking the forum ,mainly educating myself on property finance and accounting .

I am 23y/o 50k salary no dependents and live like a monk !
I have recently refinanced and have 90k in undrawn funds in a term loan
I currently own 3 IP and roughly a net work of 120k and a cash shortfall of 4k P/A

My serviceability is extremely tight and prob evan more so after APRAs intervention .

My goal is to have enough equity to purchase 1 or 2 CIP with long term tenants to exit work with excessive passive cash flow so i basically need 500k-700k for these purchases as I would not buy a second tier CIP but only a quality one with long term tenants .

Option 1 Purchase an I/P on a development site for aprx 300k either build on the new allotment or sell before build whichever is more profitable . I believe this would greatly enhance my equity position and i would gain a lot of skill in development but being new to development it also carries some risk and it could be a lengthy process

Option 2 Purchase shares in COY like : WOW,FMG,HZN,STO,WPL,BHP,S32 and some other oilers who are near 52wk lows and are trading at low multiples . I would make these purchases in a trust structure and hold them long term reinvesting any positive CF

Option3 Purchase shares in the above companies but not as much $ worth and keep some funds avail. Seek a new job preferably in sales and build my serviceability up so i can continue to accumulate I/P . I figure if the job transitions goes smoothly after 1 or 2 years i could service another 2-3 more IPs meanwhile my I/Ps and Shares have appreciated .

I liquidated all of my stock holdings to purchase my first I/P so I do have some experience in the market and understand that it is a long term game and view stock investing the same as I/P investing .

Any opinions and advice from anyone would be great Thanks Ken
 
Personally, I suggest you live a little.

At 23 and with 3 IPs, why not take the opportunity to travel and experience life to the full rather than " live like a monk"!

You are only young once.
Marg
 
I am 23y/o 50k salary no dependents and live like a monk !
I have recently refinanced and have 90k in undrawn funds in a term loan
I currently own 3 IP and roughly a net work of 120k and a cash shortfall of 4k P/A

Well done by the way!

if you are interested in CIP, why not investigate, study and invest in commercial property trusts?

The Y-man
 
Personally, I suggest you live a little.

At 23 and with 3 IPs, why not take the opportunity to travel and experience life to the full rather than " live like a monk"!

You are only young once.
Marg

Hi Marg

thanks you for your opinion . Your not the only one to suggest that to me and usually it comes from people who are still working at retirement age or people i don't consider as "successfull" or people i aspire to be like ( not saying that you fit into that category ) .

I guess in response to your comment id say that i can still do those things but after i have accumulated what I want and still be rather "young"
 
I am on the same line as Marg... Live a little
With 4k pa shortfall and 90k "spare". You are in a good position.

Is there some education you want to do to raise your 50k income?
Is there an exotic destination you want to see?
Do you just want to travel around Aus for 6 months?

If you were to leave your current job, could you get another one easily(ish) ..?

You are in an enviable position to step back for a year the go back hard :). After all "they" say we are in a bubble and property is gonna a be cheaper tomorrow :cool::D
 
Hi Marg

thanks you for your opinion . Your not the only one to suggest that to me and usually it comes from people who are still working at retirement age or people i don't consider as "successful" or people i aspire to be like ( not saying that you fit into that category ) .

I guess in response to your comment id say that i can still do those things but after i have accumulated what I want and still be rather "young"

Maybe. But appreciate there is a difference between being a focussed property enthusiast and being a one-dimensional anti-social bore (not saying that you fit into that category). It is healthy to enjoy a multi-faceted life, is what these ladies are saying - and I agree.
Good on you for having the courage to get a portfolio up so quickly, but you haven't yet witnessed the investment tide going out - it will happen at some point - and your bullish sentiment may be tempered in a big fat hurry. Feeling that anxiety will be an invaluable part of your educational journey. My advice would be to simply consolidate your present position for at least 12 months and use that time to work more on the life experience journey. Maybe not travel but join a gym or chill more regularly with your mates at places you can meet the dames and have some fun. End of motherly advice.
 
Hi Marg

thanks you for your opinion . Your not the only one to suggest that to me and usually it comes from people who are still working at retirement age or people i don't consider as "successful" or people i aspire to be like ( not saying that you fit into that category ) .

I guess in response to your comment id say that i can still do those things but after i have accumulated what I want and still be rather "young"

Maybe. But appreciate there is a difference between being a focussed property enthusiast and being a one-dimensional anti-social bore (not saying that you fit into that category). It is healthy to enjoy a multi-faceted life, is what these ladies are saying - and I agree.
Good on you for having the courage to get a portfolio up so quickly, but you haven't yet witnessed the investment tide going out - it will happen at some point - and your bullish sentiment may be tempered in a big fat hurry. Feeling that anxiety will be an invaluable part of your educational journey. My advice would be to simply consolidate your present position for at least 12 months and use that time to work more on the life experience journey. Maybe not travel but join a gym or chill more regularly with your mates at places you can meet the dames and have some fun. End of motherly advice.
 
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