I am a 30 year old female and my partner and I have a house in inner city Hobart. It’s worth $420,000 and the mortgage left on it is minimal at $5000 just to keep the loan open. We both work earning $90,000 between us per annum.
We would like to start an property investment portfolio but are unsure as to where to start – new apartments for tax purposes, or rent out the current house ($400 pw) and buy elsewhere to live. We’ve done a bit of reading but arent sure what a conservative but worthwhile first option might be.
Suggestions would be very welcome!
Hi kactus
Firstly welcome to the forum and I hope you enjoy your time with us.
One point worth bearing in mind and that is if you rent out your place and buy another property the interest will not be Tax deductible even though you are using the investment property as security.
The "purpose" of the new funds will be to buy a new PPOR and therefore will disqaulify the interest from being able to be claimed.
Ideally you would use some of the equity in your current property and look to purchase an investment property or two.
You will need to structure the loan correctly to avoid having the loans cross collateralised so your Mortgage Broker should be able to assist you with this.
If you really want to move out and rent out your place then selling the property into a Trust structure is still a possibility if the numbers work out.
Richard Taylor | Australia's leading private lender
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