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  • Profile photo of GiggoGiggo
    Participant
    @giggo
    Join Date: 2021
    Post Count: 0

    Wife and I are both 32, have 2 properties and are planning the next step.

    Goal: retire in 25 years with 200k+ income and purchase our dream home (1-2 million).

    My wage 100k wife’s 72k

    Current properties:

    3/1/1 Villa in Penrith loan $175k valued 550-600k (living in it)

    2/1/1 Villa in Orange NSW loan 290k valued 390k rented $310pw (could be 350pw in current market but have a great tennant)

    We are looking at selling the Penrith Villa and investing in dual occupancy regional NSW with less than 1% vacancy rates and do this 3-5 times. Properties I have been looking into would cost approx 700k 4/2/2 $490 + 1/1 $300pw and pay all costs including P&I plus 2-5k left over.

    We would look to have kids in the next couple of years so might drop down to my income only (my income will probably rise by $5k every year) hence why I am focused on cash flow.

     

     

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Your plan doesn’t sound too appealing to me. Where would you live?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of GiggoGiggo
    Participant
    @giggo
    Join Date: 2021
    Post Count: 0

    I would rent, my job provides rental assistance so I could live in a $650pw 4/2/2 house with a pool and more land for $300pw out of my pocket vs a PPoR 3 bed villa.

    Not to mention living in a PPoR would kill my borrowing capacity.

    I forgot we are not planning on living in Penrith/Sydney long term so not looking for dream home.

    Your plan doesn’t sound too appealing to me. Where would you live?

    Any suggestions on a more appealing plan?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Look at keeping the penrith property and borrowing against it to invest. If you think property is a good investment consider something you can add value to. You can to get high growth if possible. Buy and hold just takes too long.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    I would consider keeping the Penrith property and borrow against it as @terryw suggested.

    Speak with a broker who understands property investment loan structuring first up to see whats possible.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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