Hi Everybody,
This is my first post so if the question appears stupid sorry!
I bought a unit in 2008 for $400 000 which I live in. It is now conservatively worth $490 000 and I owe $200 000 on it. I would like to move to a new suburb to a house that will cost approximately $600 000. My question is:
A. Am I better of renting out my unit (Rent approximately $420 per week) and buying the house, thus ending up with 2 loans?
B. Renting the unit out for the next 2 years so it remains my principal place of residence and living somewhere else (Rent approximately $350?
C. Selling the unit and buying the house so I will just have one mortgage?
Thanks in advance for the help.
You need to choose which one puts less strain on ur wallet.
Your idea in A is a good one but what if u dont always have a tennant in there, would you be able to afford 2 mortgages?
I think B or C would be the best option.Whichever way you go i would converting the current loan to an interest only loan with a 100% offset account before you do much more so at least that way you preserve the deductibility of the loan interest going forward.
Funding a new PPOR being all non deductible debt will be expensive if you dont structure it correctly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the advice.
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