Hi all,
My first post.. so to start with I'd just like to say that this seems like a great forum with lots of invaluable information. Steadily reading my way through as much as I can.
In the meantime, I thought I'd explain where I'm currently at and get others opinions/thoughts/advice on proceeding.
I'm 37, single, and currently own 1 property, my PPOR which is a 2bed 2bath 1car apartment in the Brisbane CBD.
I payed $380K for it just under 2 years ago (estimate its current value now at $400K). Of that I borrowed $230K and used $150K of my own funds. Since then I've also managed to make $145K in extra repayments. I don't have an offset account unfortunately, but can redraw these funds if necessary. Remaining on the mortgage is about $85K. No other debts. Income is about 80k pa.My initial (conservative) plan was simply to pay off the current mortgage aggressively and try to become debt free as soon as possible. Then move on to something else. Now I feel I should put my money to work more.
My idea is to try to obtain 2 IPs in the nest 12mths and redraw from my current mortgage about $100k (to put $50k down on each). I would like these to be cash flow +ve, with a buffer to deal with interest rate increases up to about 10%, whether or not that's possible remains to be seen I guess. Longer term, my goal is a portfolio with a combination of cash flow +ve properties and properties geared towards capital growth.
Anyway, thanks for reading. Any feedback or general tips on what you would do in my situation would be greatly appreciated.
Thanks,
DarranHi Darran
Firstly welcome to the forum and I hope you enjoy your time with us.
Be vary careful as to how you structure your ongoing purchases as interest on a redraw is not tax deductible.
Dont have an issue in you wanting to pay down the non deductible debt as quickly as possible on the basis the current will be your PPOR forever and a day however there are a few musts and these include an offset account on the current loan and then linking it to the IP loan once this paid down.
Flexibility is key when it comes to purchasing and ensuring that you have a path to move forward is just as important.
Your mortgage broker should be able to set up a plan of how to achieve both just watch the evils of cross collateralising your loans.
Richard Taylor | Australia's leading private lender
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