Hi all, I have been on this site for a few weeks now and have read a lot of good forums and seen some good advice so thought it time to ask for some advice for myself.
We are a married couple both 26 living in QLD. We have an IP that used to be our PPOR but we moved for work, now rent it out for 210 pw. Cost us 220K and we have 110K left on mortgage. Been an IP for 4 months.
We are very interested in expanding our IP portfolio and are looking at a few areas in QLD.
I currently earn $5600 pw after tax and wife earns 50K pa. We are only paying $15 pw rent as we live in a mining town. We have no other debt.
We currently have 40K sitting in another account. Our loan is not offset as we didnt need it at the time because all our money bar about 1K used to go into the loan.
To be eligible for the offset account with current lender we need to have minimum mortgage of 250K. We dont want to refinance as we have good IR and fees with current lender.
My first question is… what should we do with the 40K I have sitting in my other account? Should I put most of it into my loan to reduce it more? Should I wait until we purchase another property and have the offset facility (probably about 2 months away)?
Second Question… more opinion. We are looking at townsville area and Ipswich area for IP. Any opinions or advice on these areas?
Any advice welcomed.
thanks
Mark.Hi Mark
Looks like your on a very good salary, so you should be able to save a heap – especially if you are only paying $15 rent.
I would suggest you not put the spare money into the home loan as it can cause problems if you wanted to take it out later (from a tax POV). Why not look at using the equity in the existing house to buy a new house for ivnestment and then get an offset account attached to this one. Keep saving into the offset and keep repeating the process. In the meantime you may want to stash your cash in an ING or a high interest account. BTW, all loans should ideally be IO.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry.
Does this mean I would essentially have 2 loans or would I combine the two into one loan?
(would the offset facility only be available to the new loan?)
Mark.
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