We are in a situation of being debt free, trying to work out what is the best way forward to grow our wealth and set up our retirement best, only 40 yrs old at moment.
We have our own home $ 300k, no morgage/not using equity, small business $600k, paid off, giving us an available income after tax and living, of $100- $125k to spend on investments annually. We have $ 150k to spend in cash in bank end of May. We operate as a company with a trust, and our accountant has advised to buy property in our name, not in company, so as to limit risk of loss of asset in a sue situation. We have around $ 160k in super, not in a self managed super fund.
We have two sons who will likely go to uni in adelaide, and we want to be able to have a home in a good area in five years in Adelaide for them to live.
In the past we have purchased an asset, paid down debt, bought new asset paid down debt, this has been our comfort zone.
We already have good cash flow, so long term best capital growth maybe more of priority, than cash flow.
Should we look for good home, with good subdividable opp down track (but not of interest for us to do in short/med term), rent it out for five years, then put kids in it, and hope we see long term good growth. ie invest 500-525 k now, negative gear, with a rental of only 325-350 per week, or should we look at multiple properties at maybe a cheaper purchase level ?
and be more agressive with creating a larger portfolio, than just one property at a time.Thank you if anyone has some advice to offer.
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