I purchased a 70's brick 2 bedroom apartment back in early 2018. Probably overpaid a bit (paid almost 700k) but it's in a great location in the inner south-east of Melbourne, with only six on the block and it's facing the street at the front. Managed to lock in 1.84% for the past two years, which allowed me to save up a considerable amount of funds. As of last week my entire mortgage has been offset. I'm earning around 125k p.a (I'm 37 and single).
I'm a little unsure as to what my next move should be.
Do I:
a) Invest any future income in stocks, ETFs, etc where I can probably make a 6-9% annual return on
or
b) Sell the apartment and buy a house (minimum 1.3M in the areas reasonably close to work)
or
c) Keep the apartment and buy a second apartment as an IP (yield on apartments is around 4ish %)
Even though I really like my apartment, I don't want to miss out on capital appreciation of land, something a house would allow me to benefit from, while apartment prices creep up much more slowly. That being said, because I'm single, paying off the loan would be slow, and meanwhile I'd be incurring an interest expense at around 6% or so.
I was hoping people could offer me some much-appreciated advice.
I'm a little unsure as to what my next move should be.
Do I:
a) Invest any future income in stocks, ETFs, etc where I can probably make a 6-9% annual return on
or
b) Sell the apartment and buy a house (minimum 1.3M in the areas reasonably close to work)
or
c) Keep the apartment and buy a second apartment as an IP (yield on apartments is around 4ish %)
Even though I really like my apartment, I don't want to miss out on capital appreciation of land, something a house would allow me to benefit from, while apartment prices creep up much more slowly. That being said, because I'm single, paying off the loan would be slow, and meanwhile I'd be incurring an interest expense at around 6% or so.
I was hoping people could offer me some much-appreciated advice.