If this is your situation, what would you do?

Hi replytokat,

Plenty of lovely ladies on the forum are on the investment track with kids in tow (some of the guys too ).

You'll need to think about risk. How much are you prepared to play with, and what happens if that goes pear shaped? Are you happy with just cash flow positive properties or do you see yourself carving out a new niche and career for yourself over the next few years while you are home with the kids? What skills do you have so that you can manage the properties, investments, people to make it work, do you need to learn some new ones?

It's hard for anyone to suggest exactly what you should do, it'll take you a little time to figure it out yourself. You at least have a goal, now you can work backwards from there. eg. completion of Goal, step, step, step, jump in the deep end, overcome fear, feel confidence, strategy, explore all options (cash flow positive, renos, development), no idea start. I'm not sure that makes sense….

Ask yourself questions, hard questions. Ask hubby questions, what if he doesn't agree?

It can be done, sometimes it'll get a little messy, or hard, but stick at it.

Let us know how you get on, you've made a good start by becoming part of the community.

Cheers

D

Wow, thasi a good position. make sure you get some legal advice on tax and asset protection strategies too

replytokat (nice name by the way), 

Have you considered commercial property? If you could achieve a 10% net yield on your cash with capital growth potential would that do the trick?  Could leapfrog into others and base the future borrowings on your properties income rather than your income.

HI,

I think you will get a number of options to consider around your current Financial Position, I would suggest that you look for a neutral company that is not selling Investment Property, get some education across all aspects of property and I would also suggest Diversification. Property is one thing, there are also a number of other options as well that just may complement your current position as well as your future strategy. If you were a client that I was talking to I would be strongly suggesting a Financial Planning consideration to your strategy, by the way I am not a Financial Planner!

In saying this, my portfolio is and has been diverse, with this income and your potential lending opportunity, you could look at various strategies from Negative Gearing turning to Positive, or look at areas where there is a little more risk such as Mining where you can get up to 10%+ on Residential.

I am not endorsing this strategy but I have 2 properties with in my personal strategy where we have had to take a fall back position on rent from $3,000 pw to $2,100 pw due to the downturn in Mining, subject to your gearing and borrowing you may look at something like this as being viable strategy to get a return that you are after, but as I did say I do not endorse this strategy as there is Risk and this should be calculated.

Bottom line is do the Research, understand the Real Potential, work through the Cash Flow and Tax Implications especially around Ownership Structures, and Diversification and Risk Analysis, and Estate Planning.

Cheers Grant