We've just decided to go a bit further with property investment. I'm in the learning stage and still trying to get my head around the different strategies (...and the new terminology to go with it!).
I like to know what I'm working towards so have worked out a bit of a plan.
Current situation:
PPoR (beachside suburb) : Mkt value $650 (Equity $350K)
IP1 (City townhouse, currently tenanted): Mkt Value $550K (Equity $350K)
IP2 (To be knocked down and 2 x houses built/Currently tenated)
Ultimately (within 10 years), we would like to be mortgage free with a new PPOR and have at least two IPs bringing in a positive cash flow (a few more would be good!). Our current PPoR would become an investment property, we would keep our city townhouse, and both of these to be positively geared.
I'm unsure what my next step should be. When we build the two houses later next year, should we aim to keep both of them as rentals, sell one and hold one, or sell both? My gut instinct would be NOT to sell both of them.
What should my priorty be at this stage? Should we be aiming to pay off our PPoR or buying more IPs, with a view to sell at some stage and hopefully discharge the mortgages. Am I being too ambitious with wanting to be mortgage free?? Is it always a good idea to have a negatively geared property?
Any thoughts? Happy to listen to all advice...I don't have any friends or family who have invested in property so this forum has been great to read.
I like to know what I'm working towards so have worked out a bit of a plan.
Current situation:
PPoR (beachside suburb) : Mkt value $650 (Equity $350K)
IP1 (City townhouse, currently tenanted): Mkt Value $550K (Equity $350K)
IP2 (To be knocked down and 2 x houses built/Currently tenated)
Ultimately (within 10 years), we would like to be mortgage free with a new PPOR and have at least two IPs bringing in a positive cash flow (a few more would be good!). Our current PPoR would become an investment property, we would keep our city townhouse, and both of these to be positively geared.
I'm unsure what my next step should be. When we build the two houses later next year, should we aim to keep both of them as rentals, sell one and hold one, or sell both? My gut instinct would be NOT to sell both of them.
What should my priorty be at this stage? Should we be aiming to pay off our PPoR or buying more IPs, with a view to sell at some stage and hopefully discharge the mortgages. Am I being too ambitious with wanting to be mortgage free?? Is it always a good idea to have a negatively geared property?
Any thoughts? Happy to listen to all advice...I don't have any friends or family who have invested in property so this forum has been great to read.