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Thanks to everyone who replied, to add some more information, I paid 400 for current house, I have 264 left to pay. When I do buy an IP I want it to make money, therefore positive gearing. Income is quite high, top income tax bracket. Already have a car leased to try to reduce huge tax. Want to stay in this house for a long time. My biggest worry is that interest on current house is non deductible, therefore any return pales when compared to paying off the home. So i find it hard to think that I can somehow buy an IP before paying off the house. There has to be a way to do both.
Hi theloanranger,
Thanks for replying. Well that’s good news that my current house is almost cash positive. Just so I get this right, I should stop paying regular repayments (Line of credit) on my current place and put them towards the new place instead and just pay interest on my curent place. Is this becuase once my current house is rented out it will be paid for by the tenant and all the interest etc will become tax deductable etc and the new place will not. I see, that is very good advice thanks! Is there any chance your good at working out cash postive properties and can tell me approx when my current house will become one?
D
