I am just about to rent out my townhouse which will make a return of around 10% so I will be making a small amount of profit each week. I am going to be renting a house for next to nothing so what should I do with my extra money that I will be making, put it into my investment propety or will this lower the amount I get back at tax time or have a morgage offset account?? I would like to buy another investment propety by the end of the year. Also should I take out the excess money out of my homeloan (which will be my investment propety soon) and put that towards an ip or just borrow 100% to cover my ip??? I would then have to pay Morgage insurance which I don’t know to much about???
I think I need alot of advice, please help!!
Thanks
Consider putting the money into an offset account if you have that facility.
You can borrow 100% without paying LMI if there is only 80% against the new property. The other 20% can come from your offset or from your townhouse loan.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I’m sorry but I don’t quite follow, very new to this.
I owe about 80% on my townhouse at the moment so you say I shouldn’t have to pay LMI??
That changes it a little. If you can keep both loans below 80% then no LMI payable.
If you have had the townhouse long enough then a reval should unlock some more equity.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
So can you tell me why it is not a good idea to put my extra money into my ip if I can withdraw it from my account at any time???
Thanks for your help!
The topic ‘Advice Needed !!’ is closed to new replies.
