Ok great questions let me clear that up.
For the third property, the minimum payment is $1404 per month. The idea is that making the higher payment amount it will take 4.7 years to pay off the loan totally and move onto the next. In the perfect world all three properties should be paid off in 12 years. We can withdraw from this property but haven't as yet (No other savings was heavily tied up in property as you can see)
How does that sound?
The remaining $1151.68 is being used for all those items you have mentioned.
Ultimately the goal is to be financially independent in 10 Years.
Q1) If you were in my shoes right now would you change anything or stick to my plan. As an example should I put a portion of our wages each month into a fund?
Q2) With living expenses, property expenses at a minimum the only thing that we could increase is income. Should we look to venture out into a side hustle business or something else to increase our income?
I wish I could help more here but real estate isn’t my forte. After reading the advice of Go Curry Cracker and JL Collins, I’ve decided to be a renter for now. I have to admit, the stories from the US of people buying cheap properties and then getting rents to cover is so enticing, but Australia doesn’t seem to have it that good. Have you read the Barefoot Investors advice against being lured into investment properties? The analysis I’ve done so far kinda confirms that what you lose in stamp duty, all the extra time, paying agents and agencies commissions just isn’t worth it. So far you’re negatively geared, those aren’t great investments to me, they just let you say, you have 3 properties. And does the debt snowball idea even make sense with all of the recommendations to keep the mortgage and pay as little as possible?
My strategy was simplicity. To me, yours is complexity. You’ve got more going out than coming in. You’re missing out on the opportunity to let compound interest grow your money. My money is in 3 places that have the lowest fees: an online HISA, an industry super fund and Vanguard.
If I were in your shoes, I’d get rid of at least one if not two of the worst performing properties, don’t buy anymore and then invest that into Vanguard or putting into an offfset account, after maxing out my super to $25k. I’d also,spend time forecasting your pathway to your goal with different scenarios, no properties, 1, 2 or 3 properties. It’s a worthwhile exercise.
Also, those other things you’ve left out of your budget should be in your budget, know where all of your money is going and is meant to go.