2 mortgages - 1 as PPOR and the other an investment

[Cazza]

Hi everyone,

Bit of a long one - sorry!
I'm wondering if I could get some advice or suggestions from anyone who is in the same situation:
I currently have a rental property which I purchased with the first home buyers grant nearly 12 months ago. The tenant will move out soon - before the 12 months is up (as a condition of the grant stipulates we need to live in the property for 6 months within 12 months of settlement). We have the luxury of living rent free at the moment and were goimg to move in the the property after we had renovated a little.

What I am now thinking of doing is renovating a few things as it does need it and then renting it out again in 6 months at a higher price. (Property is in Tullamarine.)

What I want to do in the meantime is save up for a deposit to purchase another property. Am I able to in effect have 2 mortgages - with the rental income covering one and me covering the other with my income. Obviously this would depend on the bank but I wanted to hear from anyone else who has done this and any advice you have. What are the pros and cons?

Thanking you all in advance!

 

[gooram]

It's not really clear what you are asking. Most people on this forum would have at least two mortgages. Most people would have one on their PPOR and one or more for each investment property.

You cannot really invest in property, or get all the benefits from investing in property without taking on a mortgage. Waiting until your PPOR is paid off before taking on another loan is extremely counter productive.

I suggest reading some of the other threads on this forum to get a better understanding of what it's all about.

Sorry to blow you off but it sounds to me like you need some education and this is a great place to do it, but read read read then think about posting some more specific questions that can be answered without having to write a book.

Cheers,
Gooram

 

[Propertunity]

Am I able to in effect have 2 mortgages - with the rental income covering one and me covering the other with my income.

I think you'll find most investors have 1 PPOR mortgage + n other mortgages where n is the number of IPs they have (value of n = starts with "a" ends with "lot")

 

[Cazza]

Thank you for your replies I will do some more research.