If Sheree were to pay interest only on the 2nd investment property she would reduce her peronal income tax considerably and have more income to pay of her PPR and other investment property - then review.

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You're set up very well but are missing a very big wealth building opportunity, don't think about another investment property, you don't need the pressure and are already well invested in the property market.

If you are earning 123k per year then you are nowhere near up to date with your superannuation concessional contributions, which you can back date for 5 years. So if you "top up" your super concessional contributions every tax year you will receive roughly 17% of what you pay into super returned to you as a tax refund.

My rough calculations, I think you have around $70,000 available to pay into super. If you did this in one lump sum you would receive $12,000 back as a tax refund. You do not need to top it up all at once but you can only go back 5 years, so if you paid $12,300 into super in 2020 then you were $12,700 short of the concessional contribution cap that tax year so if you paid an extra $12,700 into super this tax year, you will receive $2,159 back as a tax rebate, if you don't you will lose the opportunity for 2020.

If you're concerned about retirement TOP UP SUPERANUAMTION this will also diversify your investment portfolio into the share market.

I wouldn't advise this to somebody who was not financially literate or disciplined but with the amount of equity you have in your properties I would release equity into an offset account and pay what you can/want into Super and leave a chunk of money in the offset account as savings.

I'm not a financial advisor, I'm a self taught financially literate person who likes telling people how to make their money work for them. I presume you're on the most competitive mortgage rate? if not then change it asap! Mine is 6.2% variable at the moment

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Property should not be allowed for investment but for shelter only.

It's advice like yours which only adds fuel to property prices.

You and your like should be ashamed.

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As an owner of two investment properties and about to sell them , If I were giving any advice to anyone right now, I would say don't do it . This is the wrong time. The time for getting a fair return from investment property has long past, and will only get worse. I very must respect Paul, but I also acknowledge that as an advisor he has a duty of care and ethics to present any advice without leading or misleading the reciprocate.

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Hi Sheree,

You are doing really well! Great job!

With your level of income, and 2 dependents, you may not have the capacity to purchase another investment property, but if you do it's probably going to be for a much lower price point than your local area has on offer.

I would focus on paying down your owner occupied mortgage.

You could look at purchasing another property via a self managed super fund, but you would need to seek advice on this from a Financial Advisor and or Accountant.

One of the comments above suggested making additional super contributions, which may also be a great strategy.

You're going really well, so stay positive and don't put yourself under unnecessary financial stress, as it just isn't worth it!

Adam :)

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Also a good option :)

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Could you expand on why you wouldn't buy investment property now? I'm about to do this through SMSF as a first time property investor. A little spooked by the whole process.

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If we had believed what "well-meaning" people said, we'd still be either working or on CL age pension instead of retired and living well. If the sums add up and you're prepared to tighten the belt, sacrifice short term gratification and manage the risk by buying well, now is the best time to invest in property. The ideal time never comes. We were very low income earners, but a company called Cashflow taught us how to invest in property when we were in our 50s and we've never regretted it. Property was tangible to us, unlike shares etc that needed knowledge and computer savvy we simply lacked. We learnt to make our money when we bought, looking for ways to value add, eg turning a 2 bedder into a 3 inexpensively, and looking for passive income. Our worst nightmare was dealing with RE agents, many of whom were averse to speaking truth. Result - when tenant was good, we managed it ourselves, following Qld RTA regulations. Unless you buy too dear, poor quality or wrong place, property always goes up in price over time, while we've had shares that got wiped out. Buy the land, not the building. Buy for Joe Blow in mind, not for Home Beautiful. Do your due diligence and go for it.

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