Hi everyone,
I’ve been enjoyed reading this forum. This is my very first post since I’m in the crossroad now.
I love the idea of PI and looking for a very first IP. However, I now have a dilema. We’re planning to build a PPOR this year. We’re also looking for an IP. The question is ‘are we over doing what we can afford’?
We have paid off our current PPOR and we think it’s worth 350K. The new house that we plan to build will cost 500K. We have only once source of income (around 60K). We also plan to have another sibling for our daughter.
Our initial thought for this plan is having an IP that less than 100K without using our PPOR as equity. This will be a long term IP.
Your thought, ideas would be appreciated.
NewStart
Hi Newstart,
Do you plan to sell your current PPOR, leaving you with $250k debt (on the 2 new properties) or keep it – resulting in 3 properties and $600k of debt? I’m guession the former, as IO payments on the latter will exceed you net income.Foundation,
We definitely will sell our current PPOR since we can’t afford 600K of debt. My question is: “is this a wise PI strategy?” Should we build our new PPOR first before thinking of PI? If we decide to have both (IP and a new house), what would be the ideal way of doing this?
NewStart
One step at a time then. Sell your PPOR before you even consider an IP, otherwise you could unwittingly find yourself holding that $600k of debt.
Cheers, F.[cowboy2]Our initial plan is:
– Get an IP
– The new PPOR will be an off the plan that will be finished by the end of the year. By that time we hope that our current PPOR would be sold to service the new PPOR. The adv of the off the plan is that we don’t have to pay (with the exception of a deposit amount) until it’s finished building. Am i right?I now this is too much for a 1st time IP but is it worth considering?
Any thought, ideas would be welcome.
NewStart
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