What to do with inheritance…

Well if you are unfamiliar with property investment or just investments in general. I would read up about the topics that interest you. By the fact that you earn jointly over 200k I would just avoid renovations. If you have the financial capability you can do something that leverages people’s time better. Property development for example, subdivisions.

A few $10-30 books by some of the bigger names in property investment are going to give you a background of the different aspects.

Sometimes fixed loans will not let repay over a certain amount per year. Ie only allow $10k extra to be repaid every year. So that is something to look Into. As might restrict the dumping of that money onto your IP.

My thoughts are that you could comfortable use that 150k to buy either. 1 – 600k property at 80 percent LVR
Or 2 300k properties at 80 percent

If you have the ability to stay at 80 percent LVR from a risk point of view it would be better.

Trusts could be useful in your situation with 3 kids. As you are still able to distribute small amounts of income to young kids. Although under $500 now. Over a long period that could be a lot of additional money. Please see a accountant regarding trusts. The most common trust you would use would be a family discretionary trust.

Make sure you buy undervalued properties in ok to good locations. Look at transport routes. Close to public transport or lifestyle assets is going to critical for properties in the future. Ie baby boomers retiring to the beach locations or young professionals who don’t to own a car cause of the transport options.

Cheers wilko

boshie,

Key to getting started is to have an investment strategy, this way your actions will line up with your income, lifestyle and age. However I do understand this is way easier said than done. One important thing is working out where you are trying to get to, then heading in the right direction is way easier.

Just like the old saying “If you don’t know where you are going, then any road will do”.

Work out what resources you have to work with i.e How much time (years to retirement and hours in your week) and how much money (cash in the bank and how much you save each year). Renovating is not for everybody or even profitable every time, so look at your options.

Workout how you plan to finance your 1, 2 & 3 purchases, this can change but you have to start with a plan.
You have accessible equity of around $185,000 in your house, plus $150,000-ish in cash, theres the possibility of 2 or 3 investment properties there to start with.

Think about how much you will need in retirement; $1000pw, $1500pw… Knowing what you are aiming for will help you build the right investment plan to get you to your goals.

Think about risk, be very weary of going over 80% loan to value ratio across your whole portfolio, it’s a bucket load of extra cost. As well as extra risk you can live without as you get older.

Look at the property type (Product) you are going to use as your investment vehicle; Units, Houses, New, Old… Do you wish to use tax depreciation to add serviceability to your debt.

I like to start by working out a property investment plan in this order; Strategy, Product, Location. One leads to the other, get them the wrong way around and the tail wags the dog.