Where to next

Just would like some advice on what to do with my property journey at age 37.

My income varies 150 - 200k.
I have a PPOR mortgage of 380k, with the house valued at 700k.
And 380k cash in the offset account.

My borrowing capacity is 700k. I'd like to buy something that will potentially get the most capital gains over the next 10 - 15 years, and not sure how much of the offset cash to use into the IP.

 

Not sure on the rest of your query but make sure you consider debt recycling comments if using some of the offset for the new IP.
Good luck!

 

You are doing very well for your age. Make a (financial) goal and envision yourself in 5 years, 10 years time. I’d get a good broker, debt recycle and buy second ip with 100% loan. Or keep chipping into ETFs.

 

@bogatyr Why use your cash (offset), get no tax benefit AND pay more interest on your non-deductible PPOR loan? Rather than access the equity in your PPOR as deposit for IP (you have 320k equity, bank will give you 80% of that assuming serviceability, so 256k, which is a nice deposit for 2 places even , then borrow the rest against the IPs). Both the deposit and balance become tax deductible.

Will come down to serviceability. Get a broker who has lenders with favourable investment terms and application process.

 

You can still get some tax benefits but not as much. Why not pay off PPoR loan and use 500k equity to buy 500k house and borrow 200k against new property to buy 200k shares as shares can give higher returns than property, reduce capital concentration risk, give liquidity, can help with servicability(a couple of years of dividends can help with servicability but growth can give you cash for purchase) and/or help fund future property aquirement. As PPoR value grows you can sell down property, transfer the security to PPoR and have lots of loot to spend, even put it in Super before retirement for tax free gains some of the required super withdrawls could also fund any loan interest, loan pay down, or loan draw down.

 

I have no advice, just came along to say congrats! You're in an awesome position at 37. Well done!