Hideeho,
I was hoping for a bit of advice from a few of you experts. At the beginning of the year I bought my fist IP (dump). The plan was to live in it while I and my brother-in-law (silent partner!!) do the reno. Saved me on rent cause we got access before settlement. We have about 20%-30% equity maybe a bit more now. Do I stay in the house and borrow against the equity (if possible)or do I stick to the plan rent it out and go down the rent/invest avenue that has been a hot topic here. Any advice on what would be the best course of action would be appreciated.
gday troy,
i’m a newbie here myself as well so i dont know how much help i will be, but maybe try and work out what rent you could get for the place and see if it is more than the loan repayments? and if it is more maybe try and move in with some mates or something to try and save yourself more money? i don’t know just an idea, but probably a stupid one as i dont know alot yet but am learning more every day!
hope this helps??
check ya
Powmow[^]Cheers Powmow,
Sounds like a good start, thanks mate….I am learning everyday also. Have been watching the market for a few months and reading a lot of comments regarding interest rates etc and about the market peaking in Melb and Sydney. The strategy for this property was capital growth but after doing some research I think it makes more sense to go down the positive cash flow avenue. So thinking maybe a good time to sell while the market is still boyant and concentrate on buying postive cash flow properties. If I rent this one it will be negatively geared. Would like to know if this affects my borrowing capacity. Any Ideas??
Cheers
t
gday troy,i’m a newbie here myself as well so i dont know how much help i will be, but maybe try and work out what rent you could get for the place and see if it is more than the loan repayments? and if it is more maybe try and move in with some mates or something to try and save yourself more money? i don’t know just an idea, but probably a stupid one as i dont know alot yet but am learning more every day!
hope this helps??
check ya
Powmow[^]Cheers Powmow,
Sounds like a good start, thanks mate….I am learning everyday also. Have been watching the market for a few months and reading a lot of comments regarding interest rates etc and about the market peaking in Melb and Sydney. The strategy for this property was capital growth but after doing some research I think it makes more sense to go down the positive cash flow avenue. So thinking maybe a good time to sell while the market is still boyant and concentrate on buying postive cash flow properties. If I rent this one it will be negatively geared. Would like to know if this affects my borrowing capacity. Any Ideas??
Cheers
t
gday troy,i’m a newbie here myself as well so i dont know how much help i will be, but maybe try and work out what rent you could get for the place and see if it is more than the loan repayments? and if it is more maybe try and move in with some mates or something to try and save yourself more money? i don’t know just an idea, but probably a stupid one as i dont know alot yet but am learning more every day!
hope this helps??
check ya
Powmow[^]Im no expert either, but for me keeping it would depend on how much of a dump your talking about and if its going to be an endless $ pit. If its sturdily built or in a good area and how close you were to seeing a neutral and then positive CF.
As for finance find out what LVR the banks will give you as this will effect your borrowing capacity more than the gearing.
Cheers
Ozpat
“Success comes from having the proper aim as well as the right ammunition”
Thanks for the advice guys….I am feel a few steps closer to the right decision.
cheers
t
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