Hi guys,
Bit of a follow-on from an earlier topic I started regarding our first purchase (link). Bit of a read, but I?m hoping to get other comments/criticism/advise on the direction we?re hoping to take.
Current situation; OTP 1/1/1 apartment at Kelvin Grove will be completed in the next ~8 weeks. Purchase price was $359k, with 10% down as a deposit. Speaking with our broker we?re looking at a loan of approximately $323k, IO split $73k variable and $250k fixed (3 or 5 years, undecided). Reason for fixing is surety of repayments at a competitive rate whilst we set ourselves up (moving out for the first time/establishing our careers/planning future investment strategy). Only downside in our eyes is the inability to revalue/refinance and extract equity, however due to the nature of the property I don?t see that as an issue in <5 years. Our plan is to live in the apartment for ~2 years, however that will be dependent on how much we like it ? if we?re not enjoying it we could be looking to move after the 6 month requirement for the FHOG.
We?re currently both 23, combined gross income of $138k + bonuses which is expected to steadily increase. We have no debts other than HECS and a ~12k secured loan on our car @ 1% finance, no dependents and save good money, with ~25k in shares. After accounting for furniture (~10k) and the FHOG, we will have ~40k in our offset account once in our apartment. Our current budget suggests we?ll be able to save close to 1k per week into this offset account.
Our goals are:
Short term <5 yrs ? build equity, build portfolio, target cashflow neutral
Mid term 5+ yrs ? leverage equity to begin developing properties
Long term 12+ yrs ? further developments, ability to quit day jobs and work for ourselves consulting/developing/etc
We?re both qualified engineers with project management/advisory jobs, and are lucky enough to have a family full of builders/tradies. As such, in the time it takes us to build the equity required to step into developing we should be experienced enough to manage the build ourselves.
Based on this, we?ll be looking to buy a second place around September this year. Target is capital growth with decent yield, allowing us to save hard for a third deposit. Finance for this property will not be fixed, allowing us to revalue and extract equity when available. Ideally we?ll be looking at a house in Brisbane in a land locked area with good growth drivers and the scope to add value through a cosmetic renovation. Flexible with price ? ideally under 400k but could go to ~600 if the right property came up. We've been monitoring a few areas around Brisbane and will continue to do so ? luckily we both enjoy finding potential properties and attending inspections!
Would really appreciate everyone?s feedback and opinions on our loose plan going forward. Somersoft has been an amazing resource thus far and I hope to have something to contribute in the years to come.
Bit of a follow-on from an earlier topic I started regarding our first purchase (link). Bit of a read, but I?m hoping to get other comments/criticism/advise on the direction we?re hoping to take.
Current situation; OTP 1/1/1 apartment at Kelvin Grove will be completed in the next ~8 weeks. Purchase price was $359k, with 10% down as a deposit. Speaking with our broker we?re looking at a loan of approximately $323k, IO split $73k variable and $250k fixed (3 or 5 years, undecided). Reason for fixing is surety of repayments at a competitive rate whilst we set ourselves up (moving out for the first time/establishing our careers/planning future investment strategy). Only downside in our eyes is the inability to revalue/refinance and extract equity, however due to the nature of the property I don?t see that as an issue in <5 years. Our plan is to live in the apartment for ~2 years, however that will be dependent on how much we like it ? if we?re not enjoying it we could be looking to move after the 6 month requirement for the FHOG.
We?re currently both 23, combined gross income of $138k + bonuses which is expected to steadily increase. We have no debts other than HECS and a ~12k secured loan on our car @ 1% finance, no dependents and save good money, with ~25k in shares. After accounting for furniture (~10k) and the FHOG, we will have ~40k in our offset account once in our apartment. Our current budget suggests we?ll be able to save close to 1k per week into this offset account.
Our goals are:
Short term <5 yrs ? build equity, build portfolio, target cashflow neutral
Mid term 5+ yrs ? leverage equity to begin developing properties
Long term 12+ yrs ? further developments, ability to quit day jobs and work for ourselves consulting/developing/etc
We?re both qualified engineers with project management/advisory jobs, and are lucky enough to have a family full of builders/tradies. As such, in the time it takes us to build the equity required to step into developing we should be experienced enough to manage the build ourselves.
Based on this, we?ll be looking to buy a second place around September this year. Target is capital growth with decent yield, allowing us to save hard for a third deposit. Finance for this property will not be fixed, allowing us to revalue and extract equity when available. Ideally we?ll be looking at a house in Brisbane in a land locked area with good growth drivers and the scope to add value through a cosmetic renovation. Flexible with price ? ideally under 400k but could go to ~600 if the right property came up. We've been monitoring a few areas around Brisbane and will continue to do so ? luckily we both enjoy finding potential properties and attending inspections!
Would really appreciate everyone?s feedback and opinions on our loose plan going forward. Somersoft has been an amazing resource thus far and I hope to have something to contribute in the years to come.