$30 K in cash savings now!!!
Well it is now Jan 1st 2013 and this time last year I had 7 K in savings.
I now have approx $20 K in savings. I'm pretty happy with the amount I've saved. I still have a $2600 roof bill I have to pay but oh well. I think I'll try to stick it out for another year with mum and dad and not move out until I have at least $30 K in the bank. I really do miss living by myself but I think it'll be worth it to last here a bit longer to build my buffer up a bit more.
An update December 2013:
I hit $30 K in savings !!!!! I have $30,400 in savings now woohoo. It took me 2 years to get there and its really starting to snowball now as rents have increased. The next $10 k will be saved even faster. I would have saved a few thousand more if not for that $2600 roof bill.
Even though I would like to move back to my place (and doesnt everyone!) I'm tempted to stay on for longer here. I resigned the tenant for another 6 months until July. I'm thinking of aiming for $50 K in savings before leaving. This could well and truly set me up for the future. I think if I focus extra hard I can have $50 K in my bank in 18 months time! and move back to my place mid 2015.
I really want to invest mid - late 2015 but I dont know if I am financially ready for it. All I know is I would have to buy something with positive cashflow as I dont want something negatively geared again. This time I will be using OPM and none of my cash savings. I will either fix the loan or make sure I can afford IR at 10% IR. I will also have my large cash buffer to allow for unexpected expenses. This time I will see a mb and then go to my accountant to do the calculations for me so I know exactly what Im getting into and I will need to be able to afford it whilst living at my place and not just whilst living at mum and dads.
PPOR loan $175 K - * Valued at minimum $360 K - Rented out for $330 per week
IP loan $200 K - * Valued at minimum $250 K - Rented out for $290 per week
Both loans are cross collat with ANZ
* I havent had my properties valued, these are just guesses
What would you do in my situation? Would you invest sooner rather than later? and how would you go about it if you were me?
Positive cash flow property for my next ip purchase in 2015 or would you wait a few more years until rents have increased more??
My ip is negatively geared by around $1,500 after tax per year.
edited to say: My payg is $60 K as a permanent substantive government employee
thanks for your help!