younguns
younguns 2011 summary post
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younguns 2011 summary post
Growing a large portfolio, planning to retire and reducing debt
Hello fellow investors I hope this is the right place for this post.
My husband and I are 28 and 30 and have some big goals and until recently thought we were well on our way to achieving them until we met with our accountant who bought us crashing back down to earth and made us question our approach.
We really need some advice to get us back on track. Any help would be greatly appreciated
My husband is self employed and works fly-in fly-out in WA and earns an excellent income $350K approx. But it comes at a cost which is being away from our young family! Our plan was to aggressively grow our portfolio for the next 5 years (purchasing at least 1 if not two properties each year) and then plan for him to move back to Perth and work half the year, focussing the other half on doing some small developments etc (he has his builder's licence). Our ultimate goal is to be financially free by the time he is 40 (in just 9 years).
Our accountant raised some concerns with this plan particularly around being able to reduce our debt so that we are no longer reliant on such a large income and can ultimately 'retire'. We still have so much to learn and are having trouble understanding how we can continue to grow a large portfolio, service this portfolio and ultimately access our money to live the lifestyle we want WITHOUT having to sell?
Summary
PPOR (soon to be IP no.3) purchased 2008 - Western Australia 3 x 1 - purchase price $490K - current value $520K - estimated rent per week $400
IP no 1 - Melbourne 2 x 1 apartment purchased 2008 - purchase price $320K- current value $410K - rent $320 per week
IP no 2 - Melbourne 2 x 1 townhouse purchased 2009 - purchase price $465K - current value $560K - rent $430 per week
New PPOR (to settle Sept 2011) - Western Australia 5 x 2 - purchase price $700K, renovation budget $90K, conservative value on completion $850K
It is really important to us that we can see where we are going to help get through being apart so much. Our goal is to be in our 'dream house' by the beach worth approx $2 mil in 5 years time and to have enough income (approx $200K per annum) to live after servicing our portfolio.
Sorry for being longwinded and thanks in advance for your help
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