Hi Guys (apologies in advance for this being so long winded).
I am very very new to this whole property investing thing, purchased late last year my first house with my partner, our PPOR, (not what we wanted but were extremely pressured by impeding loss of rental home, We have lots of pets which makes finding a rental really hard). I have since realised, through reading Steve’s book that it was an even worse choice that we originally realised. Not only is it negatively geared (if it was to be a rental) but it is in a slow growth area too… (yep, im kicking myself!!) We would ideally like to be living on acerage, but we also want to begin building a positive cashflow portfolio. What I am struggling with is what we should focus on first? We are only a few years out from starting a family (and being down to one income) and we do have somewhere to live currently so should we focus on getting started with the investment side of things while we can, and should we cut our losses with this place??Sorry, it probably sounds like im asking you all to fix my problems, but I could really use some outside perspective from people who can focus on the financial side of things to help square me up.
Thanks Everyone
Welcome @rouke1
It comes down to a blend of lifestyle choices and opportunity cost.
Selling up would be a major family decision and force you to rent again which you have said is a problem. If you are not willing to stomach the change then you just need to work out the best way to minimise your cashflow costs now and invest the rest. You can do all the normal family budget things to keep costs low, also you could possibly refinance the family home to the lowest possible interest rate or even interest only to free up investing cash.
For many people the opportunity cost means they are technically better renting for longer and investing as aggressively as possible. If you are sure the are you are in (no idea as you have not said where) is low growth you could consider redeploying capital to a better market.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi BuyersAgent
Thanks for your take on things.
Our current PPOR is in Carey Park, in Western Australia. According to realestate.com.au it’s annual growth is -0.8%…
Not good.We have started a pretty strict budget so we will have the funds to make a move (whether it be investing or moving) mid-late next year. In the mean time Im going to keep learning how to research areas and houses so that our next buy is a much more positive investment. We only went in with just over 7% deposit so our current interest rate is the lowest that we can get, however I will look into whether an interest only mortgage might be a better way to go for now.
Thanks for you help :)
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