Selling or not selling?

Hi Alan

Welcome to the forum.

Only you can answer that question. Look at how much it costs to hold your IP at present and how much your new mortgage repayments will be. Combine those expenses with your living expenses and work out what you have left over.

Are there any ways you can improve the cashflow from your IP? Is your IP loan currently interest only? Have you got a depreciation schedule? Can you increase the rent at all?

Cheers

Jamie

Can you afford it?

Hi Alan

Yes, if you increase the loan amount the monthly repayments will also increase.

<Moderator: delete flame>

Hi Alan,

Interesting question.

Why don't you turn your first PPOR into an investment property by renting it out? Given that you've already created some equity in the first property, you can convert your mortgage for all of your properties into interest only loan with an offset account. This will reduce your repayments significantly given that you've got rental cash inflow, potentially over time your interest payments will reduce as your offset account increases, some negative gearing tax benefit and a lower repayment rate.

I wouldn't ever recommend taking equity out of your property and investing it into shares. Recipe for disaster if you're only starting out in the investment game. Plenty of professional hedge fund managers who geared up their funds to invest in equity have gone bankrupt over the last couple of years.

You can try one of the free suggested calculators to see if this solution could work for you.

Let me know if you need a hand.

All the best,
Jase