Hey all,
My Name Is Dan, I'm 25 and I purchased my nans house off my family after she passed away. I paid $240,000 for it in 2004 (it was valued by the bank at $250,000 but the family looked after me
) Anyhow due to only earning $40,000 a year, my dad kindly lent me $50,000 for a deposit. I moved into the house for about a year and then decided to move back home and rent the house out for $250 a week. My current tenants pay $285 a week and the house was just revalued at $295,000. I ended up with a loan of $192,000 and have $179,000 to pay off. I am about to refinance and this is why I have posted my life story haha…I'm about to go from a 9.45% loan down to a 9.02% and was going to use my equity to get another $240,000 for another rental house, however after reading a few books I'm starting to think that maybe I should just keep throwing in more additional payments into my first house instead and pay it off faster? Or do I buy another place haha? I'm confused… I'm part way through one of Anita Bells books atm but just thought Id see if you guys have any other suggestions for me
Thanks for reading,
Dan
Dan
If the property is being held as an IP and then next property will also be an IP can i ask you why you are paying anything off the principal ? Why is the loan not an interest only loan with a 100% offset account.
The loan from your father is this being claimed as a Tax deduction as if so and he doesnt require the funds back then again make this interest only.
Your income will govern how much if any a lender will advance as remember and redraw on the equity is not tax deductible. A new loan is however it needs to be structured correctly.
9.02% is not a fantastic rate so i assume the rest of the product features make up for it.
Richard Taylor | Australia's leading private lender
I'm starting to think I should just pay this house off asap so it can become a cash flow positive property to help pay off the next IP…
As for interest rates, what should I be looking at as an acceptable rate?
Cheers Dan.
) Anyhow due to only earning $40,000 a year, my dad kindly lent me $50,000 for a deposit. I moved into the house for about a year and then decided to move back home and rent the house out for $250 a week. My current tenants pay $285 a week and the house was just revalued at $295,000. I ended up with a loan of $192,000 and have $179,000 to pay off. I am about to refinance and this is why I have posted my life story haha…
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