Hello Everyone, I have read other topics and realised my first post probably doesn't make sense. So I have rewritten and hopefully this makes more sense.
We have heard stories about 2 – 5 families all living in the one property and paying off a number of properties quite effectively. We have been considering.
A year ago we built a new house in Perth and have a mortgage of $460.000 with the back of the house being incomplete. Our area has been doing quite well and the median house price is $730.000 and for a piece of land alone 3 houses up the road has just sold for $344.000. We think our house is worth around $600.000 looking at the sales around the area.
We have a combined income of 150.000 and the family members who want to move in with us have a combined income of $100.000. If they move in with us PPoR we can double the payments on the mortgage. As at the moment we are paying $1500 a fortnight alone.
We have a few issues that we need help with:
1. We have an option to move in with them as they are living in a cheap rental ($250.00 pw). So therefore we could change our PPoR into an IP so therefore would get money from the rent plus double the amount of the mortgage payments to go towards the IP. Rental income approx $400 – 450pw.2. Both families live in the PPoR refinance… to take the mortgage up to $500.00 to put in a pool… to add value and equity?
3. Both families live in PPoR at $460.000 mortgage and get a valuation on the PPoR to invest in a $500.000 property which therefore becomes an IP. With this we will end up with a whopping mortgage close to 1 million dollars.
At the moment we are very confused and new but sure thinking about the future.
Any help will be much appreciated.
Thanking You
Paula
How long do you think you can stand sharing a house with other families? You'd need to figure out how to have your own space, for sure.
Remember if you move out of your PPOR and do not reside in another property that you own, then you have 6 years to move back into PPOR without affecting your entitlement to a CGT (capital gains tax) free sale if you ever sell it.
So perhaps you could move in with your friends, put tenants in your house, give yourself a few months to ensure the setup is working, and then consider acquiring an additional property. You might need to speak to a broker about the loan on the PPOR as the interest might not be deductible since when you took out the loan it was not for investment purposes. Perhaps a broker can help with that, but be clear on whether you intend to move back into your home or not.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi JacM
Thank you very much for that.
JacM wrote:How long do you think you can stand sharing a house with other families?That's what I was thinking.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I reckon you could deal with sharing the kitchen, but it will drive you mental sharing the loungeroom. You'll want to relax in front of the tv watching programs of your choice, and maybe have friends visit. I could see this kind of working in a 3 bedder house with two couples ; each has a bedroom; one gets the main loungeroom and the other uses the third bedroom as their loungeroom. Something like that. I'd really caution you against rushing into spending up big on investments and then finding that you have no choice but to live with other couples for a decade. I'd think you could tolerate it for 2 years max. Try it out before you dive in head first.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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