My partner and I are looking at moving in together and we want to start buying +ve cashflow properties.
I have nothing to offer in the way of a deposit but I earn $50K pa. He is looking for work.
He has a home worth about $250K oweing about $110 which could be rented for about $200pw.
What are your suggestions? Should we rent it out and buy one together? Or sell it and buy one? etc etc…
Help appreciated.
Tammy,
If I were you, I will move in the current house together and draw down the equity to purchases a few +ve cashflow properties. At the same time save up until you are ready to purchase quality investment property in a few year time to offset your +cf properties.
I would then move out of your current house rent it out and purchase a better house for both of you to live in.
Which meant in a space of 2-3 years from now you will have 4 +cf and 1 -cf and PPoR (total 6).
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]with 50k p/a – you can move into the house together and the banks will easily give you loans for that kind of income
“If You never never ask, you’ll never never know”
I should have been clearer perhaps. My partner’s house is too small for us (I have a three year old). The house is 2 bedroom with one living area. The decision is not to live there at all. The decision is to rent it out or sell it.
Rule of thumb – never sell
get it rented out. if it will not return pos. cashflow, then try fixing it up with a few thousand dollars and thus increase the rent. keep it as an asset – it will help you in the future.
Kind Regards,
George“If You never never ask, you’ll never never know”
Tammy,
In that case you rent the existing house out and purchase a better house for both of you to live in.
Then you do the followings:
Draw down the equity to purchases a few +ve cashflow properties. Put whatever you can save to your PPoR.At the end of the day you will be controlling 4 IPs and PPoR.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]If you want to head down the IP route, then listen to the advice above.
If it were me, the question I would first ask is around the “sleep at night” factor. If you are not comfortable being on one income with a larger mortgage than you have then you would be better off selling your current place.
Re your original question, I would still be looking towards owning something (whether IP or PPOR) to stay in the market.
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