My Husband and I are in our early Thirties and we purchased our first home two and a half years ago. We payed $93000 for and it has since been valued at 120000. We have just refinanced, now paying by doing Line of Credit. We have been told we could easily get $200 a week if we rented it out. We would love to buy more property but we’re not sure if we should move to rent this one out, or just buy another house as an investment and stay. We also live nextdoor to a bad Co Op House and was told if we could buy that then the property value in our area would increase also. Is this true?
If your comfortable where you are – stay. Then use the equity in your current home to purchase another investment and rent that out. You see to sell your current home, you would get 120k but to purchase aother home – the new one would cost you maybe 200-250k.
If the agent said you could get 200 p/w – I would get him/her to put it in writing. Look at the rental demand in your area. Is it highly likely that your current property would be rented or is the agent playing games with you.
Kind Regards,
George“If You never never ask, you’ll never never know”
Hi Rebecca,
Originally posted by Rebecca B:We have been told we could easily get $200 a week if we rented it out.
We also live next door to a bad Co Op House and was told if we could buy that then the property value in our area would increase also. Is this true?
A few pointers from your post.
Be wary of the potential problems misuse of a line of credit can cause. There are documented cases of individuals using a line of credit like a big credit card with the result that they get further and further behind.
That is why we use an offset account which does a similar job – yet is cleaner and easier to maintain a disciplined spending habit.
I would also consider who is ‘telling’ you this will rent for $200 or buying a single house in an area will improve the value of the ‘whole area’ – sounds like someone with vested interests or possibly someone with little understanding of real estate investment.
And finally – what’s a co-op house? It may help in getting more valid opinions on your questions.
Derek
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