Does anybody think that we are in a current situation where it would be best to hold out and pay off current properties and save money rather than purchase another IP? With talk of further interest rises coming and the current state of the economy creating a buyers market in the short term, do you think it wise to consolidate finances rather than purchase furter property?
I currently have one IP with a debt of 107K, and it is worth about 220K. I have savings of 40K I could use to reduce the debt, or use on a deposit for further property. I earn 100K plus and with wife combined of 150K plus. Should I pay off current debt and save and wait, or buy?? I am having trouble deciding my options!
thanks
Mark.I'd buy, but that's me, and everyone here will have a different opinion.
Accessible equity of 69k, cash of 40k, on a 150k income… and you're having trouble deciding whether or not to buy?
You must be the most cautious person I've met all week!
Either that or you have car/boat payments you're not telling us about.
P.S. I hope that cash of yours is in a 100% offset account!
markleslie wrote:Does anybody think that we are in a current situation where it would be best to hold out and pay off current properties and save money rather than purchase another IP? With talk of further interest rises coming and the current state of the economy creating a buyers market in the short term, do you think it wise to consolidate finances rather than purchase furter property?I currently have one IP with a debt of 107K, and it is worth about 220K. I have savings of 40K I could use to reduce the debt, or use on a deposit for further property. I earn 100K plus and with wife combined of 150K plus. Should I pay off current debt and save and wait, or buy?? I am having trouble deciding my options!
thanks
Mark.Mark – what I am trying to do is trade up! Although the market is not exactly hot, I am putting my apartment in Bayswater WA on the market, and I have had my offer on a small house on a large block accepted. Of course, a condition of sale is that I sell the flat. If I get no nibbles, no bones broken, except for a few classified ads and some signs.
I am selling myself, and the person selling me the block is selling himself, so we would save heaps if this goes through. (He is selling to develop one of his sites).
This way, I put my equity towards a property that will grow a bit faster (although the flat made me a ton of money in the 2 years I've had it!) without incurring a whole new loan. Of course I have had to reckon on paying CGT and all that, but the figures work. Getting another property outright did not. The bank is happy this way, and so would we be if we sold.
I have advertised on all available online places for property – do you know if this is an appropriate place to put details up?
Good luck
Elmina
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