Hi everyone,
I have a question and i seeking some opinion on what to do!
I living in a ( 3 Bedroom 1 bathroom )in Joondalup W.A it is valued at $420,000 i owe $115,000 on the property. I also have a investment loan of $120,000 in shares and managed funds. I am keen to hang onto the Joondalup property and rent it out, the going rental rate is $350 a week. I would like to move to a new property in the price range of $500,000. Do i reduce my debt a little bit more first or do i sell my Joondalup property and purchase a new property and borrow the shortfall.
Any guidence or opinion would be a great help.
Thanks
TrentEither way, it might be an idea to consider refinancing the Joondalup property to be an IP loan, and pull some money out of it (then the costs associated with the property would be deductible). This money could be used to get rid of the investment loan in shares & managed funds, while you rent something to live in elsewhere. Or it could be used to get you into another property.
It might be an idea to have a chat to a mortgage broker to understand whether you would have enough borrowing capacity to get another place at this stage or not. You wouldn't have to actually submit a loan application. Just have the conversation.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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