Anything wrong with my strategy?

Hi JacM,

The reason i eventually want to do build a duplex and live in one side is for a couple of reasons.

1) We have only ever built properties brand new and we still wanted a "nice" newer house for ourselves. Something that we can stay in for many years while we cement a decent property portfolio.

2) It may sound silly, but we have a couple of nice jet skis and I often have to take one off the double trailer. I need space to do this and a single garage won't cut it.

In regards to a previous reply – We understand that there will be selling costs as well as stamp duty on newer place, however, we see these as a short term cost that will be out-weighed by long term achievements. My initial goal is to become mortgage free. This doesn't mean I pay off my entire loan. My understanding is that our new place will be around the 250k mark and we'll soon have 250k in the offset account. Purpose being that we are then able to direct our finances into the offset accounts on other properties. It also means that when I build a duplex I'm able to take out my finances and turn it into an IP???

Hope I have this all correct as this is the path I've directed us towards.

Hi Guys,

Almost 2 years later and I felt like writing an update:

I am now 27 years old, still married :) and no kids on the scene yet. I’m still property investing and here’s where I am up to:

Combined income is around the same $190000.

Investment property 1: (2012) Purchase price $245000, Bank valued at $305000 on I/O, secured by itself – rent $310 p/wk.
Unit 1: Build price $235000, Bank valued at $300000 on I/O, secured by itself – $295 p/wk.
Unit 2: Build price $235000, Bank valued at $310000 on I/O, secured by itself ($180000 in offset account and I’m living in the unit)
Investment property 3: Purchase price $269000, recent purchase, cash security term deposit of around $56000 – rent $320 p/wk

This is a very neutral type of set up for me and this is how I prefer to do it. I know that I could release some equity and pick another house or two, but I like the buffer they provide and I also like the cash flexibility per week.

• This reply was modified 9 years, 8 months ago by  bullet46.

Good question – the PPOR would probably be worth $440000… I will always regret letting that house go however, I really feel that by selling it I have kick started myself to invest further. I also look at the equity I have created in the duplex and can see it exceeds equity I had in the PPOR.

I know that by building up my offset account and then lashing out 20% deposits is probably not the best way to go I.e. Non tax deductible deposit. However, I like the goal of having to build up the offset account each time otherwise id probably spend money on stupid boys toys. I guess if I was 100% driven to not buy those toys then my best bet would be to run the properties at an increased LVR and form tax deductible deposits through releasing equity – something to think about I guess.