Noob Introduction and asking for advice

Hi Everyone

I am basically a complete newbie in real estate investing, although I own one IP, I was totally clueless when I bought it and probably didnt set it up right.

I am now hell bent on investing in property with a goal to be financially independent in 8 – 10 years.

Please excuse me for any ignorant or newbie ideas, I am playing catch up with knowledge and learning as much and as fast as I can.

Here are my (current) investment goals

• Annual income goal – AUD120k passive income in 8 years
• Required capital = Annual income goal ÷ desired return % (4.5%). 120,000/0.45 = 2.67M (approximately)
• Using whatever strategy is most suitable for my goals, e.g. current thinking is to purchase 8 – 10 properties in 8 – 10 years, sell half of them and pay off rest. its thats simple right….. : )
• I dont mind if it is residential or commercial, and I am location agnostic. 

Here are some of the details of my details –

• I currently live outside Australia, so I have some different parameters when borrowing money in Australia
• I bought my current (only) IP in 2020 for $390k, currently owe $300k, recent valuation is at approx $700k (bought in Tugan QLD, prices in that area have gone crazy). the loan was a variable P&I (I believe I should have got an interest only loan….), with interest at 3.42% with redraw facility at CBA.
• so I should have approx $300k equity in the current IP

My questions are below and any additional advice or suggestions are really appreciated. I basically have very limited knowledge at this stage and dont know what I dont know.

1. Should I immediately refinance my current mortgage to interest only (I believe this is a no brainer)
2. Should I immediately borrow on the equity as much as possible and keep that money in the account so I am not paying interest but have the cash on hand to pay out a deposit quickly if needed?
3. What should my next IP be?
   1. Existing residential (single family?) which means I would need to get another full loan
   2. Buy off the plan (one or more?) which means I only pay deposit now and can get the loan later
   3. A combination of both?
   4. Something else?
4. Does anyone have experience of using one of the big banks for a loan whilst being based overseas, e.g. US, and setting up an offset account overseas that pays down the loans in Australia?

If you have read this, thank you, if you are going to respond many thanks and appreciate any constructive comments.

Thanks in advance

• This topic was modified 3 years ago by  Rumbling.