Ok, I am an investing dummy, and need some serious help. I have posted a similar question on here previously, but need further advice.
My wife and I owe $240K on our 2 bedroom apartment on the Gold Coast. We bought it for $270K in 2007, and feel it has most likely dropped in value. We owe $11K on a credit card, and have 8K in the bank. Our weekly repayments are about $380.
Our home loan is with Anchorage and is at a rate of 6.21%.
We want to buy a house on land that has the potential to be developed into townhouses/duplexes in the future. We would live in it in the meantime and rent our unit out. We should be able to receive $280 per week in rental income. We want to buy soon.
What is best to do from here? Should we change our current home loan to a lender that has a more attractive rate – they will then conduct an evaluation, and we can assess how much (if any) equity we have, and we can move on from there……
Or is it best to arrange for a mortgage broker to assess our entire situation and let them do the groundwork?
If we have no equity – yet we could still service another loan (taking into account anticipated rent from the unit), would it even be possible to acquire another loan on such a low deposit amount?
I have $112,000 in super and have also considered setting up a SMSF to invest in property. Any thoughts on this? Is this amount sufficient to make a start?
Another thing, I have heard that lender evaluations often come in lower than insurance company evaluations. Is this often the case?
I would welcome any suggestions as to what you guys think may be best.
Mikko.
Hi Mikko
Hm could be tricky getting a refinance on your place, given the likely current value of it compared to the outstanding balance.
Is there a reason you've not paid off the build of your credit card with the $8k you have in the bank? I'm thinking of that high credit card interest and how it would be a good thing to get that knocked on the head.
Investing in a SMSF is a very awesome thing, yes. About $70k is enough to open the fund and acquire its first property. Also you can share a SMSF with up to three other people – so you and your partner could share a fund and as such pool your superannuation money together.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I’d be getting in touch with a mortgage broker. Their are a few good ones that post here. I’m currently using Jamie from pass go home loans, he’s a gun and will steer you in the right path like he has with me.
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