My partner and I would like to buy multiple investment properties. How should we go about this?

Q.

I am nearly 55 years old and earn $50,000 per annum, my wife earns $6,500. Our mortgage is $36,000 and our home is worth $450,000-$500,000. We have no other debt. We are considering entering the rental investment market and starting a portfolio of two to three properties, but are not sure of the best way to approach this. We want to borrow small to begin with, approximately $150,000, to buy a holiday or retirement unit to the value of $100,000 and wonder if we should go with another lender and pay out our existing loan at the same time. What are your thoughts?

You have built up a substantial equity in your home which does provide a good base for borrowing for investment but you need to understand that all the equity in the world is useless for borrowing unless you have the cashflow to make the repayments on any loans you take out. I suggest you start with one property to test the waters and make decisions on other investments as you gain experience. Try to find a property that is cashflow positive from the outset. Because of your relatively low taxable incomes you will not receive the tax benefits that would be enjoyed by a higher income earner.