在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I've been struggling to get a clear idea on how to go about developing a strategy for myself and my partner.
I've read a lot of books, attended a lot of seminars and to be honest all they have done is confused me. Although I am aware of many strategies now, i'm unsure of what I need for my circumstances.
My goals are to gradually create passive income over a 10 year period so by the time i'm 40 (30 now) i could stop work if I wanted to and do whatever. I've started with little goals like generate $80 a month to afford an Iphone ), even thats hard enough Retirement, superannuation etc etc isn't too much of a worry for me.
So far we've bought one unit in Adelaide (where I live) and i'm happy with that one so far. Now the first one is out of the way i'm unsure
I spoke with a mortgage adviser recently and it seams as if we can borrow around $300k. So the question is, where now? I know I don't have the knowledge and confidence yet to invest interstate and to be honest I think with only one IP i can afford one or 3 more in Adelaide before I look elsewhere. I know its not the best in terms of growth etc but its what I know best.
I've looked at the following ideas:
- Keep buying when possible new or newish units/houses in decent or up and coming areas and holding them.
- Buy older or in need of reguvination units/houses, doing them up and either holding or selling to release cash for more IP's
- Buy off the plan H&L packages to hold or again make quick profit
-Or a combination of all or some of them
Then theres the cashflow side of things. Currently our unit is slightly negative. If i looked at is as a business it would be a losing game so should I look at trying to get +ve stuff to start with as the more and more -VE IP's i buy the more I rely on a job to keep paying them?
We are also strongly considering moving in with my partners parents place for a year and renting our house out. It would work out to be a huge saving a month and may help us move along quicker, a head start if you will.
Thoughts would be awesome guys
Comper100 said: ↑
My goals are to gradually create passive income over a 10 year period so by the time i'm 40 (30 now) i could stop work if I wanted to and do whatever.Click to expand...Hi Comper100.
Before looking at next purchase, perhaps consider what you want your end goal to be. You say that you want to live off passive income (in a roundabout way), so now you need to work out how much you want/need to do that realistically. Then you can work out the next move. Eg, lets say you want 1K per week in passive income. How are you going to get that? 4 IP's paying $250 p/w fully paid off (forgetting tax issues & maintenance for simplicity purposes). Or perhaps 10 IP's that are each $100 CF+ p/w. Or perhaps something else like a combination of IP's & shares.
If you can figure this equation out early on in your investing /buying phase, it may help you determine which path to take.
Some investors I've talked to have just started buying IP's with no clear goal in mind (I'm guilty of that). Nothing majorly wrong with that I suppose as you are still building your wealth but I think it becomes more achievable if you have a certain goal etched into your mindset. That's not to say you can't change/alter/expand on your goals along the journey either, it just gives you a 'target'.
You'll be given different advice over the years from different sources. Try and find what suits best and something you feel you are comfortable with.
All the best.