Hi, first time forum poster. love the website, lots of good stuff.
Hoping for a bit of advice for our first IP. We currently live in and are paying off our house. its worth about 200k, and we owe 140k on it. we want to move into a bigger, newer place. probably need to look in the 280k-300k range in the area we are looking in.
My question is, can i work it so i can move into the new place, while retaining the current one as an IP? i believe we can get enough rent from the current one to service the loan on it, so i figure we just need to be able to afford the new mortgage. however, i’m not quite sure where using the equity in our current place comes into the calculations. do i need to increase one or both of the loans to access that equity? will the repayments on our current place increase if i borrow more to access the equity in it?Thanks in advance for any advice or suggestions. love to hear some pro’s and con’s of my plan.
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