Firstly - Congratulations on a terrific site. I have been reading through various posts for a week now and given the experience of the users in this forum, I am keen to learn your thoughts on what I should do next (if anything) given my current position.
I own my own house in the SE of Melbourne (say $320K) and have a small amount of equity in an IP in Bentleigh (value is say $510K with loan of $430K) which I have had for nearly 4 years. I feel the IP is really only showing good signs of CG during the past 18 months.
Currently, I can not afford to pay anything more given the difference between the rent earned and the interest payable which I feel is my only barrier. Whilst I would like to purchase another property, I am not really in a position to incur the additional costs associated with another property.
From the little I know about investing, I see my options as either waiting for the rent to increase to help with the interest shortfall before purchasing another property, or trying to find a cashflow positive property with less CG as this would not put any strain on me. I should add that I am able to financially withstand a short period without tenants but it is the ongoing strain which I want to avoid.
Your thoughts? And thanks in advance.
I own my own house in the SE of Melbourne (say $320K) and have a small amount of equity in an IP in Bentleigh (value is say $510K with loan of $430K) which I have had for nearly 4 years. I feel the IP is really only showing good signs of CG during the past 18 months.
Currently, I can not afford to pay anything more given the difference between the rent earned and the interest payable which I feel is my only barrier. Whilst I would like to purchase another property, I am not really in a position to incur the additional costs associated with another property.
From the little I know about investing, I see my options as either waiting for the rent to increase to help with the interest shortfall before purchasing another property, or trying to find a cashflow positive property with less CG as this would not put any strain on me. I should add that I am able to financially withstand a short period without tenants but it is the ongoing strain which I want to avoid.
Your thoughts? And thanks in advance.