Hi All,
Iam relatively new to this forum and seek expert opinion and thoughts about what you think to buy a second home ?
Iam owning a property which is worth 390K and I still owe about 250K (minus the redraw) to the bank. The purchase price was 320K. Now we are planning to move to a bigger home which is estimated around 450K. We have about 70K in redraw. We have an annual income of 150K and home is 50%/50% between me and my spouse.The existing house is having a loan of P+I and redraw facility available.
Our objective is to build a sound investment portfolio for long term (10 yrs) but at the same time attain a good livingstyle and meeting needs (Growing family) by purchasing this 450K property as our next home in suburb we wish for short term horizon(5 yrs).
Once we move into second home, we would like to rent out my existing property..with rental income around 1300 per month expected.
My questions are:
1. First of all, Can i buy the house 450K using money from equity of present house and about 60K deposit from my side.?
2. Loan structuring process so as to put max debt on IP and less on my next home.I look forward to your suggestions and advice.
Best,
AbhiYou would have been better having the extra money in an offset account then you could have pulled it out to do with what you want.
If you pull equity/and or the redraw out to put on your new home it is not tax deductable. You can do it though.Only money you spend on an asset that creates an income is tax deductable. Sorry.
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