- bullet46Participant@bullet46Join Date: 2011Post Count: 51
I haven’t visited this forum in some years but used to always be on here. My wife and I have had experience with property investing in the past, but I believe my strategy, along with having children, has changed. In the past we were operating on this system: small home loan on our PPOR and then investment properties (n/geared). We ended up with 6 but then started selling them off when my wife stopped working and serviceability tightened.
Brings us to now…
We are both 31 with 2 children under 3. We have a PPOR we thought we would stay in but are outgrowing it. The property is worth about $440,000. When the loan got down to $180,000 I realised that we would eventually be moving but after the property sat for 12 months on the market, we converted the loan to interest only so that we could build up the offset account. Currently, we have equal in the offset account as what is remaining on the loan and effectively don’t pay repayments. We have no other debt. I make 105k/year as staff and we own a business that generates 70k/year.
My question is where to from here? My goal is obviously passive income through residential property but I am also faced with the fact that we will eventually require more living space… Would love to hear some thoughts/ideas as to what you would do in this situation.Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763
Thanks for the post and welcome back. Wow – that’s a simple question with a complex answer.
First up, well done on your efforts thus far. It sounds like your hard work years ago is paying dividends now.
The question I’m wondering is whether you have a lifestyle issue (i.e. PPOR), or an investing issue (i.e. Return).
If it’s a lifestyle issue then only you can decide where you want to live, the style of the accommodation, etc. If it is an investment decision, then it is a question of working through the basics and forming a plan for scoping and finding your ideal IP.
Are you able to make it to my upcoming live 1-day seminar? If you are seeking an investing solution then that would be the best training you could possibly do in 2019.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
Success comes from doing things differently