Hello to all
Im hoping soemone could point me in the right direction of what my next step should be….
I currently have 2 IP , both bought together with my brother. I will breakdown the summaries for every1
1 – In one IP i have moved in after recently being married and i pay for any loan repayment and bills that are attached to it. I spent most of last year renovating it before moving in and had it valued at 230K. I currently have roughly 100K left on the loan of which i make the repayments quite comfortably
2- In the 2nd IP , my brother has taken over any bills and loan repayments. Because it was bought only 2 years ago , there is no equity in it.I pay nothing towards this , like wise he doesnt where i am living nowMy question is
1 – Do i go out use the equity i have built where i am currently living to help buy another IP as of "NOW". I have seen and done some research on a few IP for around 200K ,so do i use say 50K equity (remembering half of the unit is my brothers) , take a loan for 150K and be left with loan repayments of around 200-300 dollars a month (done very easily)
or
2 – Do i save like crazy , try and pay as much off the IP loan (where i am currently living) as i can this year , build more equity and then buy
My wife and i are very keen to buy , but dont wanna sink. We realise that for the next 3-4 years before we have kids would be a great opportunity to make the most of working full time, saving a smuch as we can so to set ourselves up At the moment we make the current repaymnets very easily, and would really like to expand out portfolio. I have been reading as many property books as i can , and i think i have the strategy , the busget and the patience to really do well , but i just need some guidance to get going.
Any info would be great. Thank you for reading my rather long post but having read through a few posts , people on here do like to help , so im hoping the same can be done.
Regards
Tony6
I would do everything you could to build as much equity in your homes as soon as possible before you have children as this can slow down your investment dreams if you don't replace the income – We learnt from experience!
Cheers
Scott
http://www.YourEndlessWealth.comMy suggestion would be to untangle your finances from your brother – there are two properties that you both own. Have you thought of putting one in your name and one in your brother's? It would probably need a cash payment from one or the other. Yes, there would be fees and possibly CGT, but I would think that the sooner you are acting independently the better.
Unless, of course, this is part of some long-term strategy or there are other good reasons for you to have invested this way.
Marg
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