Hello all
Current situation I own two investment properties, details are:
first is a country house rented at $155 a week and i owe $37k on it. Value $190k rates are $120 a year
2nd is 2 x 3 bedroom terrance and 2 x 2 bedroom units all rented in the CBD of a country town for $580 a week combine. Its a buisness loan paying 10.90% with NAB
as the residential properties is on comercial land. $199k to go. Value $300k. rates are since 1 terrace and 1 unit is a rate well both combine is $3200 a year. I wish this could be changed to residental loan.interest and principle for house 1 $37k plus a $10 morgage monthly fee is approx $75 a week + $10 fee per month
interest and principle for 2nd place plus a $50 monthly buisness fee is approx $1950 a month + $50 fee per monthcurrently me and my partner pays $1000 a week on property 2 as we want to beat down the interest and $125 a week on property 1
ok now this is the situation a presant. we are living in my GF family home and we have a option on buying it as her dad sadly went to age care. restbite care needs $125k as a deposit. current Sydney property is vauled at $440K and we only have $30k spare cash.
My partner has never owned a house so she is entitled to first home buyers.
both full time workers earning combined $170k a year Before tax. She earns near $60K a year could she be eligable to take on the loan and maybe with me signing a contract to assist.
I dont know how it works but i know we are paying additional $1400 or so a month without rental assistance form the I.P'sso I'm considering what to do. At the moment we are arranging the property to be valued before we get the ball rolling.
Is it possible to draw out on I.P 1 as i have little to pay and like transfer to assist in making the deposit look more attractive from $30k to maybe $130k? i dont want to draw on the buisness loan.thanks if you read all the way through
Hi there,
You certainly have sufficient equity to go ahead with your plan, however a few important things to consider:
If you borrow money for the purpose of buying your own home (PPOR) then the interest on that money which you have borrowed will not be deductible. While this is not a good thing, there are ways to fix that. Considering that you have some investment income, you can structure your affairs so that your debt is slowly recycled and becomes more tax efficient. Be warned however, there are ways to do this, and then there are ways not to do it.
Secondly, budget is important. Considering you have a joint income of $170,000 and it appears that you don't have major comitments (strong rental to cover your debts) then I would assume that you can afford to move into the property – however doing a budget will confirm this.
Finally, depending on what arrangements you can make on the purchase of the property, there are other structural ideas that you can utilise to may be able to shuffle things around – however it's not the kind of advice that can be given without a more thorough analysis. PM me if you like and I can take you through a few more things.
as the residential properties is on comercial land. $199k to go. Value $300k. rates are since 1 terrace and 1 unit is a rate well both combine is $3200 a year. I wish this could be changed to residental loan.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
