Summary (for those that don't want to read the long details): scenario $432 000 equity, $100 000 income incl current positively geared properties and my job. What's the next step? Goal: get a total of $100 000 per year income through property investments.
More details:
Okay so in 12 - 24 months from now my short term plan will be complete I will have:
PPOR worth $680 000, mortgage $412 000 rental return (4 rooms downstairs rented seperate) $560 per week profit
IP 1: worth $550 000, mortgage $436 000 rental return $200 per week profit
IP 2: my half worth $210 000, mortgage $160 000 rental return $100 per week profit
I'll rent out downstairs of my house until we have our second child, and then I'll need the extra space and have to kick out the tenants so will lose $560 per week profit from the rent. So that will probably be in 3 years.
My income will be $83 000 gross in 3 years as I will only be working 4 days per week. Rental income will be around $350 per week profit in about 3 years. So all my income gross will be $101 300. I will have 2 or 3 years there where the downstairs rent will see my gross income hit $130 420
So the question is what do I do in 3 years time? Do I just keep doing what I've done already. Or am I in a position to do something better?
I have the skills to be able to renovate houses myself, I can do bathrooms, kitchens, flooring, etc... all of the above.
I could keep going with my current strategy, find a renovator, do it up, rent it per room, bring in $200 per week profit on each place with rent all positively geared. Each place would have an average of $60 000 capital growth after reno costs etc... I could hold each property until rent supplements my income?
BUT that's 8 more properties to replace my income!
Is that what it's going to take?
Anyone have any better ideas?
I'm almost wondering if in 3 years I'd have enough equity to buy a boarding house. I've seen ones go for $1.15 million that brought in $180 000 gross per year. Knock $40k off the top for bills, you still have a really good return if you self manage.
Or should I start splitting blocks and making money that way through capital gains?
Anyway any ideas are appreciated
More details:
Okay so in 12 - 24 months from now my short term plan will be complete I will have:
PPOR worth $680 000, mortgage $412 000 rental return (4 rooms downstairs rented seperate) $560 per week profit
IP 1: worth $550 000, mortgage $436 000 rental return $200 per week profit
IP 2: my half worth $210 000, mortgage $160 000 rental return $100 per week profit
I'll rent out downstairs of my house until we have our second child, and then I'll need the extra space and have to kick out the tenants so will lose $560 per week profit from the rent. So that will probably be in 3 years.
My income will be $83 000 gross in 3 years as I will only be working 4 days per week. Rental income will be around $350 per week profit in about 3 years. So all my income gross will be $101 300. I will have 2 or 3 years there where the downstairs rent will see my gross income hit $130 420
So the question is what do I do in 3 years time? Do I just keep doing what I've done already. Or am I in a position to do something better?
I have the skills to be able to renovate houses myself, I can do bathrooms, kitchens, flooring, etc... all of the above.
I could keep going with my current strategy, find a renovator, do it up, rent it per room, bring in $200 per week profit on each place with rent all positively geared. Each place would have an average of $60 000 capital growth after reno costs etc... I could hold each property until rent supplements my income?
BUT that's 8 more properties to replace my income!
Is that what it's going to take?
Anyone have any better ideas?
I'm almost wondering if in 3 years I'd have enough equity to buy a boarding house. I've seen ones go for $1.15 million that brought in $180 000 gross per year. Knock $40k off the top for bills, you still have a really good return if you self manage.
Or should I start splitting blocks and making money that way through capital gains?
Anyway any ideas are appreciated