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not quite sure of how to move forward

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jeffery | 27 Jun 2013, 09:05 PM Agree 0
Not quite sure on how to move forward.

I own 2 investment properties & i am 27

Canberra
Loan 315K
Value 400K
Rent $450pw

South coast new south wales
Loan $113000
Value $250K
Rent $250pw

I want to move forward with property investment but confused as hell of what to do next. I tend to favour cash flow positive properties as i dont want to sacrifice lifestyle & go into to much mortgagee stress (unsure if this is a good thing or a bad thing).

I have been looking at properties to buy in whyalla, south coast nsw & wagga wagga i want to diversify my portfolio but confused about what is best. As a result i have thought about joining a coaching service but some that have been quoted have been in excess of 10k. Is there anywhere you can get support or are these coaching services worth every cent?

One of my concerns is that if i buy another property i may go over 80% LVR is this a bad thing considering its tax deductible? should i just jump in & stop stressing and hope for the best? should i acquire a buyers agent? how am i going to get the most effective help?

Thanks

Jeffery
  • Pauline Klemm | 27 Jun 2013, 09:45 PM Agree 0
    Hi Jeffrey
    I read your post and the first thought l had was Dont be scared to invest in education. I have a mentor and they are invaluable. Choose a property advisor who is independant and a member of a professional assoc. called PIPA - google them for more info. They will look at your situation and help/advise you on how to move forward. You've done well so far for your age, congratulations.
  • Eos Property | 29 Jun 2013, 10:37 AM Agree 0
    Hi Jeffery,

    Am part way through the PIPA course and the content is pretty good. So if you can find someone in the area who matches you and your personality then by all means seek their counsell.

    Having said that - I am not sure you need someone. You are just at the crossroads of your investment journey and someone to bounce ideas off is probably all you need.

    At the moment you have purchased two properties using your own resources - so you can do it.

    Whichever way you go you need both cashflow and growth in your portfolio. One without the other and you'll stagnate. Without knowing the ins and outs of each of your properties it would appear that you have some balance there at the moment - Canberra for growth and I suspect the south coast property for cashflow.

    If you grab yourself a decent broker they will be able to crunch your numbers and give you an indication of how your borrowing potential is going. They will be able to determine which sort of property is most suited for you as your next step.

    Don't look at LMI as an ogre - particularly when you are investing in a rising market and are at the acquisition stage of your journey. Sure it costs a little, but the expenses are deductible, and you can fast track your journey.

    Having said that make sure your risk profile tolerates this strategy, you have some cash in reserves and you personal situation can accommodate additional property.
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