Hello,
My fiance and I just bought our very first home and we are eager to get into real estate investing ASAP.
We bought the house for $93,000 (with a mortgage of $74,000) and had it independantly valued at $130,000 (We bought the house from my father…thanks dad). I estimate we have about $50,000 equity.
We now have 2 situations before us and need advice on how to go about it.
First, we would like to renovate our home. We want to:
* Put in a new kitchen
* Build a deck
* Renovate bathroomSecondly, we are looking at buying 2 investment properties by the end of the year.
Is is a good idea to access the equity to renovate (and what is the process to do that), or do we get a personal loan??
Any advice in what to do now would be appreciated.
Thanks
Karl and Rita
The future belongs to those who believe in the beauty of their dreams. – Eleanor Roosevelt
Karl & Rita,
If you are looking to purchase 2 Investment properties this year I would recommend you do this first unless you are sure the improvements to your PPR will give you access to more equity,
Keep in mind funds for the improvements will not be tax affective and the increase in loan repayments may have a negative affect on your ability to borrow for your investment portfolio,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
I agree, buy investment places first. Then if you can look at doing reno work yourself. We just build a deck 9m x 5m for $400. We found a place selling cheap hardwood and did work ourselves. You can do a lot of the work on your own place slowely, spend the time to source cheapest/seconds/second hand and do as much as you can out of your spare income each month.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
