Where to start

I've lost my way for a number of years and was hopeful of some help getting back on track.

We have no residential property at present including no PPOR, and one commercial property with an LVR of 40-45% (no recent valuation) and a net return of approx $35kpa. 5 year term finishes feb 2009. Yield is in th 8% range. This is held in a trust.

Have a few hundred in cash, and a hundred or so in shares.........and I'm early 40s married with kids! Looking down the barrel of a late retirement.:eek:

We are currently overseas and expect to be for the next 4-5 years. Disposable income from salary approx. $110k.

Need to get back to residential property, with the intent to return to Australia and continue in this vain. Will most likely require a PPOR then, but not absolutely necessary.

From past experience, when back in OZ, should be looking at disposable income of 70k.

Any pointers on structuring investment to suit the next 4-5 years and beyond?
 
Last edited:
All depends on what are you ultimately trying to achieve from investing in property and what time frame are you looking to achieve it in?

Do you have answers ?
 
Rick,

We're wanting a comfortable retirement. The time frame is 18 years.

Comfortable retirement ??

You have to be more specific than that in order to measure how far off you are from attaining it and so you know when you have reached it.

What/Where exactly is it?

You have to have detailed clarity.

If you dont know where you want to go all roads will confuse you on which one to take.
 
Now that I've had fun being a smart-***, I'll offer a helpful response. grech, as you're overseas, you may have missed that there's a current Federal political scandal surrounding a public servant named Godwin Grech, who is in a psychiatric hospital right now. He faked an email at the centre of the Utegate scandal. I just found the timing of somebody appearing on the forum named "grech" hilarious... but I do have an odd sense of humour. :p

Anyway, what Rixter's saying is that you need a goal more like this:

In 18 years' time I want to own 5 median-priced residential houses, fully paid off. As they currently return $350pw and repairs etc average 40% of rental income, this will give me the equivalent (in today dollars) of $1050 pw net (relatively :p) passive income.

Or, comfortable could read more like:

In 10 years' time I want to control $10M of commercial real estate returning $1M pa in income and costing $600K (interest-only) to hold each year, all expenses borne by tenant, leaving me a net income of $400K pa.

Of course what you actually achieve may look different, but you'll start out on the journey quite differently depending on which of these is your goal.
 
Jump in?

Hi all, Can I jump into this question - I've a similar one too : where to start.

Before reading these forums, doing lots of looking and research, I'd planned on buying a second property to live in, rent the old, (retiring in 3 years) and consolidate to one property minus debt and hopefully have a capital gain to live on until the superannuation comes in (8 years). BUT that simple concept has somewhat come unglued.
My circumstance is - Wage 60k, current house value $600k, Debt 200k. Would rent for about 450 pw. About 10k savings (rainy day) and that's it. No dependents, no other loans. BankWest will give me up to 400k loan to buy.
So I'm still on the original trajectory ( a unit I could retire into - unless a better offer came up - with rent income about 450 from one or whatever from the second property). Is this a good way to go or are their other options for me to consider?
What should I do - this confusion is driving me to distraction!
 
Julie how old are you? are you getting advice on transition to retirement super rules etc?

buying a low yield growth asset may not be best at your point in life. consider selling up, buying somehting more appropriate now and investing in an index fund. Or many other numerous ways to skin the cat
 
Very good position to be in.
Here's my quick 2 cents worth.

Get your commercial property revalued to get an idea of your current LVR. I'm guessing that there may be about 100K available equity here.
Get a LOC, or refinance, and use this to purchase investment property 1.

With the cash, use this to purchase 2 properties at this stage. (say ~100K cost each on a 80% LVR). One of these you might want to purchase a property that you wouldn't mind turning into your PPOR in 5 yrs. Aim to bring the mortgage down on this future PPOR first, so when you move in, there is are minimal non-tax deductible cost.

Get loans with offset account.
Leave the shares as is (a buffer in case things go wrong, and you need to sell some shares for quick cash).

So you would now have 4 properties. Use the disposible income to pay down loans, and then equity to purchase more.

With you current position, and income, it's quite feasible to maybe get to 7 or 8 properties within the 5yrs.
 
thanks Ausprop - yes I've got the legal rules and all sorted out. I'm 57 btw but feel heaps younger lol. I've watched the cycle of crashes from the sidelines since the 70's and despite the relativity of share market compared to property, I think good property is the way to go for the safest and securest future. (in fact if I'd done this in the 90's when I first thought of it I'd be advising you people now lol).


Julie how old are you? are you getting advice on transition to retirement super rules etc?

buying a low yield growth asset may not be best at your point in life. consider selling up, buying somehting more appropriate now and investing in an index fund. Or many other numerous ways to skin the cat
 
Back
Top