Where do I go from here ?? We have bought 7 properties since 25th March and have now all settled. Spent $620,000 and all are “positive” IP’s. Looking to retire in 4-6 years and estimate paying down $200,000 of initial debt over 4years.
Some opinions pls ??? Should we keep buying or should we concentrate on paying the debt down with the rent and also added contributions . I am having trouble working out if paying the existing properties down with the existing rent is better than letting more properties pay down more of a bigger debt.We also have a Neg Geared property which will offset some positive income(tax purposes)and should give us a much better growth than our country properties but of course it is not positive and costing us about $1200 per month.Only bought Sutherland (Sydney) property for wealth creation and not taxation minimising. Hope I haven’t blabbed on too much and would appreciate some questions and then perhaps some comments.Cheers LenSounds like you had a nice wod, to spend befor retirement. And good on you.
May I ask how much positive cash flow all six property purchases make per week and did you pay for any of them outright?
The question I would ask myself is – What will the $620k country properties be worth in 5-7 yrs? What would the city property be worth in 5-7 yrs?
That would determine how much cash you need for the properties. With the city property all you will need is the monthly pmts. With the country properties growth will be limited so you will need more cash to payoff the properties.
Originally posted by camder:Where do I go from here ?? We have bought 7 properties since 25th March and have now all settled. Spent $620,000 and all are “positive” IP’s. Looking to retire in 4-6 years and estimate paying down $200,000 of initial debt over 4years.
Some opinions pls ??? Should we keep buying or should we concentrate on paying the debt down with the rent and also added contributions . I am having trouble working out if paying the existing properties down with the existing rent is better than letting more properties pay down more of a bigger debt.We also have a Neg Geared property which will offset some positive income(tax purposes)and should give us a much better growth than our country properties but of course it is not positive and costing us about $1200 per month.The correct answer will revolve around how much you want in retirement and whether or not your current portfolio – as is – will sustain itself and your ‘retirement goals’
By paying down one third of the debt it will mean your interest debts are proportionaly reduced and with some refinancing of loans you should be able to create some additional cashflow from within your existing means.
On the otherhand extending your portfolio will allow you to widen your income and capital base that may be more sustaining in the future.
The numbers (and your comfort levels/needs) will determine whether a portfolio extension is required.
Derek
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