Forum Replies Created
3.85% gross yield on current market value of properties doesn’t give you a lot of head room after investment property expenses and interest (and buffer for interest rate rises … we’ve only really got one way to go from here in the next few years).
Not sure if its worth considering a rent review. Alternatively, have either of your investment properties got opportunity to increase yield (e.g. cosmetic reno, granny flat etc.).
Make sure you’ve got a good depreciation schedule for each IP as that has an impact on your cash position after tax … lots of people overlook this but even a couple of grand a year adds up of the long run.
Check all the other factors that are taken into account when you apply for finance (limits on your credit cards, loans on depreciating assets eg. cars, boats, school fees etc).
Otherwise, keep grinding and focus on getting that PPOR paid off 100% and getting rid of the non-deductible debt before you then start to reduce your IP loans (IMHO, do this with offset so you can more easily access the funds later for a deposit for that 3rd IP).
Rejoice in the fact that you’ve got 2 more investment properties than most Australians.
