R
Roobingle
Guest
I cant find advice on this but i will pay off my principle residence in a few months. I have other 2 investment properties of 40,000 and 60,000 approx. My goal is having a passive income allowing me to retire early. Therefore after my principle, I want to go hard and pay off the investment properties as yes i will be paying tax but logically, good money is also going out the door on interest. good times now with low interest but i dont expect that to last. Should i pay the investments off asap (after my principle)? i don't want to die owning heaps of property and not enjoying myself. i just want to be able to sustain myself into a 'retirement' where i work or study what i want instead of doing a good, secure (but boring) job i've been conditioned to. and i'm the kind of person who does like to be in debt so go hard at paying off rather than spending or spoiling myself (well much!).
Note: Both properties are returning a sizeable profit now (positive geared). Yes i know i'm going to be up for $$$ tax time. This year in Jan i took over the management of both investment properties while increasing the rent on one to market value when my property managers were strongly advising me not to. I instantly increased my monthly income by $500. I picked up a great tenant. My other property is not at market value and i wanted to increase the rent by $15 a week, but bearing in mind the economic condition i would have accepted $10. So i decided to ask for the tenants input. they had already been renting for 5 years. Because they should be paying a lot more, they offered $20 that they could comfortably be able to afford. I was very happy with that.
A main problem i saw with the property managers were that they did not send me (CC) every item of correspondence to do with my properties. They should have. For a whole lot of things they were saying they were doing, they didnt eg rent went for 9 months after a due increase which they kept saying they had written about but didnt. that particular guy got sacked for a whole lot he didn't do but in the mean time, i was missing out on real increases. The company was also advising on low amounts etc. Was not happy with them. It appeared they were taking a lot for basically only collecting rent. I'm much happier now and better off financially. The only aspect i was worried about was the transition on changing tenants. Using a paid internet site, I advertised and only lost 3 days rent. I was wrapped.
Note: Both properties are returning a sizeable profit now (positive geared). Yes i know i'm going to be up for $$$ tax time. This year in Jan i took over the management of both investment properties while increasing the rent on one to market value when my property managers were strongly advising me not to. I instantly increased my monthly income by $500. I picked up a great tenant. My other property is not at market value and i wanted to increase the rent by $15 a week, but bearing in mind the economic condition i would have accepted $10. So i decided to ask for the tenants input. they had already been renting for 5 years. Because they should be paying a lot more, they offered $20 that they could comfortably be able to afford. I was very happy with that.
A main problem i saw with the property managers were that they did not send me (CC) every item of correspondence to do with my properties. They should have. For a whole lot of things they were saying they were doing, they didnt eg rent went for 9 months after a due increase which they kept saying they had written about but didnt. that particular guy got sacked for a whole lot he didn't do but in the mean time, i was missing out on real increases. The company was also advising on low amounts etc. Was not happy with them. It appeared they were taking a lot for basically only collecting rent. I'm much happier now and better off financially. The only aspect i was worried about was the transition on changing tenants. Using a paid internet site, I advertised and only lost 3 days rent. I was wrapped.
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