Hi, I just wanted some advice as what you would do next if you were me. I am 24, salary of 64K and still living at home so not paying rent or mortgage for PPOR. 1st investment property bought last November, lived in for 6 months to claim FHOG and then rented this June – house in Blacktown bought for $357 500 and rented for $410 a week through an agent. My loan is $285 000 and currently have 55K in offset account on an IO loan. Assuming there is no money in offset account, expenses for this property are: Interest at 6% = 17100 Building insurance = 780 Landlord insurance = 345 Council rates = 1170 Water rates = 1002.8 Sundries = 66 Management fees = 1641.64 TOTAL EXPENSES = 22 105.44 INCOME ($410 per week for 52 weeks)= 21 320 Net position = $785 loss per year excluding unforseen repairs etc So since I have 55K sitting in an offset account, I am thinking of buying another house around the Blacktown area and taking out a 90% loan. Good idea or no? My main concern is if I do that, then I will have minimal savings in cash, so what happens if I want to buy a PPOR in a few years?? What would others do in my financial situation? Thanks in advance
You may be able to use the equity in blacktown to purchase the next one, particularly if it has gone up in value. Also you haven't factored in depreciation and other non cash deductions into your calcs and not included tax saved so you property would probably be cashflow positive if you do - which is very good work,
