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Hi Maree123
On the surface it looks like you have heaps of equity to grow a property portfolio.
I think that most people should have a plan to own 6 properties outright so that they can live off the rental income.
You need to know what you have to do to achieve this.
The amzing thing these days is that knowledge is free.
The best place to start is to choose a strategy that works for you.
Steve MacNight ownes over 100 properties and you have read his book, why not read all the books you can find until you find a strategy that suits you and then follow it.
I buy cheap second hand property in Sydney that rent in good times and in bad.
I usually renovate them to increase theri value, rent them out and then wait until I can get them revalued
I then use the increased equity to help pay for any shortfall and use the balance to buy another.
You already have two properties, if you did the same you could buy 2 more and have money left over as a back-up.
The major problem at the moment for most people is getting finance so you might have to look into this first.
If you can't access the finance yet then keep learning because as sure as day follows night, you can find a way even if it is to wait a little longer.
Imagine if you waited another 5 years what both properties would be worth
Selling property that has plenty of equity will lose the potential you have to create wealth in the future form either or both propertiesHi Duck City,
I agree with the others – don't sell
Keep it as it will continue to go up in value over time and it could be your springboard to great wealth. Robert Allen says to buy right and hold on tight. He talks about using the equity to buy a second property and a 3rd and a 4th. I attend weekly meetings in Sydney where they teach this stuff.
Knowing what to do is unbelievableThe best thing to do is to get some property investing knowledge and it is virtually free.
You can do this by reading books and formulating a plan and there are plenty of books in the library these days.
In the meantime you need to work out how you can borrow and what you have to do to borrow, usually it is to have an income.
But as they say "there is more than one way to skin a cat" and property investing offers plenty of opportunity for someone with the right knowledge
Maybe your parents have enough equity in their house for them to help you buy without going to the bank.
These days with higher rents you should be able to buy a house that is close to cash flow neutral.
To get your parents to help you I would be putting forward a plan to them showing you know what ytou are doing and why you are doing it. You can formulate a plan quite easily by reading books because that is what I did.
There is a fortune to be made in property if you know what you are doing and some of the books give you a step by step process to follow.I attend weekly chat club meetings at Baulkham Hills in Sydney which are free for the first 4 meetings. It's a chat club where people can meet other would be property investors and those already on the journey. We fisrt of all learn the basics about investing and then when we are ready we take positive action. Every now and then guest speakers come along such as a mortgage broker, bank manager, accountant, property manager, buyers agent and the like. The people there learn how to buy 2nd hand property in Sydney, usually for under $250,000, fix them up and get them refinanced higher. The rents are about 6% to 7%. One person recently purchased a house for $175,000 and spent $35,000 on the renovation and had it valued for $259,000. The tenat is paying $300 a week.
