Hello
Dean here again, been research lot and lots in NZ, getting more confidence to soon purchase a property there, im unsure what i should do re: fiance, the hardest decision that im still locked into a Honey Moon Period with the CBA till April 05, which i have just learnt that you cant access the equity, unless you pay exit fees etc. My IP Unit is worth $400,000 and i owe about $290,000, thats my one and only debt, so i have abouta bit over 100K in equity. Very soon ill have about $50K in cash, so now i need to figure which way to fo re: finance, a mortgae broker reckons i should pay the exit fees and use the equity, should i use some of the cash that I have as a intial desposit until April 05, im planning to buy a place for anywhere between 40K-90K, so the deposit will be pretty minimal along with legals etc, so i wont need to really spend much of the availble cash i have, so now i need advice what is the best option or alternative options. Look fwd to hearing from you. Many thanks in advance
Best Regards
DeanHi Dean,
I suggest you use the equity for the deposit and associated costs; the interest on the investment loan is deductible debt.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
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 have just moved to Alice Springs for a 2 year work contract, and am wondering whether it is best to buy or rent the house we will live in. What will this decision do to my intention of building up a portfolio of properties? The houses I am looking at cost $350/$400 per week to rent, and to purchase cost around $350K plus Stamp Duty of around $15K. Deposit would be $22K with a loan of $334K repayments $515 pw over 30 years. I own one house in Sydney which is currently rented out at $310 per week and providing positive cashflow of $30 per week or $150 depending on whether I pay principal and interest or interest only.
Do you think there will be growth in alice Springs in the next two years?
Would you buy an IP there if you were leaving shortly?
I wouldn’t buy there unless the answer to both these questions is yes.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks. Yes to both, however I’m still not clear on the best path. Alice Springs had 17% growth in the past 12 months. I would consider buying an investment property here, but none seem to be positive geared, that is unless I pay a substantial deposit to make it positive geared. Rental returns are reasonable good 7% and more. I had thought it might be a good idea to rent what we live in and purchase an investment property as there may be advantages in expenses I could claim on an investment property. I’m not sure if this then means I am negative gearing though, which is not what Steve’s wealth creation philosophy is about.
Dean, if you are only looking around $90k purchase I suggest you use your own cash for deposit of 20% being $18k. Sure this may not be tax deductable but $18k at 7.5% = $1350. Say u get a third of this back that is effectively $445per annum. It will then depend how long you hold the property for as against you break cost and break fee what is the best option.You can get your break costs then make the decision.
Regards
TerryDean,
Remember that nearly every property had growth in the last 12 months. Check figure for a quieter period than that.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
