My wife and I will pay off out PPOR mortgage in about 5 months time (wahoo), + We have 4 invest properties.. rough break down:
1st) Value 440K (mortgage free and rented)
2nd) Value 230K (90K mortgage IO loan with 100K off-set, rented)
3rd) Value 270K (175K mortgage IO, rented)
4th) Value 390K (380K mortgage IO, rented)
PPOR) Value 520K (soon to be mortgae free)All of our rent and salary is going onto our PPOR mortgage to help get rid of it.
Any suggestions on what we could do next?
Easy. You can:
*Buy more property
*Don’t buy more, instead pay down debt
*Sell down some properties
*a combination of any of the aboveThe issue with your question is just the same as a person walking up to you and asking “should I turn left at the intersection, or right?”. You can’t answer the question without knowing where they are wanting to go.
So instead why not answer this question: Why are you investing? What are your goals?
That should help dictate what to do from there. You can’t plan your course without a destination.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
My (our) destination is early retirement with a great lifestyle (like most i guess)
im 36 and my wife is 40 all of our decisions to date have been geared towards our retirements (that is buying property to fund a great retirement)…Once our PPOR is paid off do we go again for another IP or look at paying down some of our IP mortgages?? I think paying of the PPOR mortgage has got me in a bit of a tissy (a good one of course)
Why not use the offset on IP 2 to pay off the PPOR debt now?
I would start saving cash in another offset against an IP – the one with the highest rate and/or the one in the name of the lowest income earner of you and spouse.
While doing this work out a plan. How much income do you need and how many more properties. Then buy those properties.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You’re in an awesome position – well done.
How much income do you need in retirement? Can you get it from your current portfolio if the debts were all eliminated?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi
Yes your in excellent position , here is my thoughts on what I would do in your position
$90,000 with $100,000 off set , use lazy money to pay down ppor
Working with what you have open offset with 4th property put in cash flow from current rentals , should be about $324 week after holding costs and tax also put in what you would of been paying on ppor $400 week , do so for two years total cash in new offset $75,296
Growth of about 2% year of current investments ($1,330,000 +4%)= $1,383,000 7% yeld -holding and costs = $734 week cash flow
Semi retirement after two years , saving cash flow in to offset for another two years totalling $76,336
2% growth on investments over two years now $1,438,000 with 7% yeld – costs = $764 week cashflow
With $151,632 in new offset account plus current offset of $90,000
So in 4 years time will have aproxamatly $241,632 in offset can spend at any time liquid asset and passive income of aproxamatly $764 week
Just my thoughts hope you enjoy retirementThank you all very much for your thoughts. I’m a slow learner so ill need to process this. Great detail Chrisss1010 much appriciated.
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