We bought a property in Sydney in mid 2006 for 360K of which 250K is currently owing. Due to a new job last year, we moved interstate and rented the property to family for 300\week (this is market rate).
We are planning to purchase another property to live (as we are currently paying rent of 1750\month). I am seeking some opinions on how to do this best - we'd like to maximise our tax benefits + pay off the new property quicker.
My initial thoughts are to re-draw the money on existing property to 80% of the property value and pay interest only. We'll then pay off the new property as quickly as possible.
Any advice would be appreciated. Feel free to ask additional information.
I am married with 2 kids, aged 6 & 4. Wife works part-time. Current annual combined income is 130K.
We are planning to purchase another property to live (as we are currently paying rent of 1750\month). I am seeking some opinions on how to do this best - we'd like to maximise our tax benefits + pay off the new property quicker.
My initial thoughts are to re-draw the money on existing property to 80% of the property value and pay interest only. We'll then pay off the new property as quickly as possible.
Any advice would be appreciated. Feel free to ask additional information.
I am married with 2 kids, aged 6 & 4. Wife works part-time. Current annual combined income is 130K.