Hi Derek

Thank you for your response. Or strategy is not tax focussed at all. The goal is to have 10 positively geared properties in 10 years time (not including our PPOR), 9 years to go now. This is so that my husband can start working less hours as he now works 60hrs a week!!!

We ended up with two negatively geared properties by default because we decided to build our dream home first as all professionals and have borrowed 750K on that (valuation is 950k-1000K) and investment was not on our minds. We then had a baby and I then did not want to work full-time and also fell in love with property during the construction of our home.

Our current situation is we don’t pay any rent as we are house sitting for a friend who has moved to france. We will be doing this for the next three years. The only expense we have is $100 pool maintenance and $40 lawn maintenance for this house. Other than that we pay for any maintenance of white goods etc as and when it arises. So we decided to rent our PPOR out and we are getting $1000 a week for the same (executive rental, fully furnished).
The new purchase is in the CBD hence negatively geared. We purchased it for 310k, 2 bed 1 bath 1 car park. Settlement is due in 3 wks. 294k loan, works out around 87%. We are putting in a new kitchen for around 4000k and repaint the interiors. Its a strata titled apartment. 350 quarterly strata fee plus 1800 council rates. we will be forking out around 5000k annually for this one. but since my husband is paying 46% tax we are hoping to offset this.

We plan to purchase something with potential to subdivide next year, probably interstate or regional. Do you think we are doing the right things. Is there any thing that you find impractical about our plan?

Thank you for your input