Hi all i need help we are buying a house in bundaberg and we owe 230K and the realestate have valued it at 280K – 285K we want to move to brisbane around morayfield and we dont know whether to sell or keep it and rent it out and we would have to rent in brisbane because we wouldnt be able to afford two mortgages. i dont understand much of the terminology in the property investing world would you be able to give me advice on what i could do.
regards undecided
Hi Jamadee
Remember when you rent the property in Bundaberg out you will receive rent and also a Tax deduction for the interest shortfall, possibly an allowance for Building Write off and Depreciation as well (depending on the age of the property) so you maybe suprised howo little each week the property costs you to retain.
Also have you considered buying in Brisbane using a shared equity loan where you make repayments only on 75% of the purchase price and the other 20% would be interest and repayment free.
With increasing interest rates these type of products are becoming more and more attractive to clients looking to retain their investment assets as well as move into their own home. At 75% of the purchase price the repayments will probably go close to the current you would have to pay anyway.
Richard Taylor | Australia's leading private lender
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