Any Accountants Here?
- Thread starter Infest
- Start date
)
I agree, SS is a great place to ask questions, you'd be surprised at how knowledgeable people are on here. (it doesn't have to be on property investing, for example). Although I acknowledge that it does depend the question - things of a financial nature you may be hesitant to post up, for example, and that's fine.
Ok well,
I'm in the process of buying a house as you might or might not know. I am going to live in it for six months to receive the FHOG. I then want to rent it out and build up some equity over a few years and then buy another IP. When it comes to the figures, I understand where they come from and where they go, but I wish to understand it in a more simple term. I want to know whether (in my situation) it's better to pay Principle and Interest, or Interest only. I want to know, with my current salary am I able to do this? (high 30k pa). I want to know what funds I put where when I start renting it (IE: Maintainance, PM fees, Rates) etc.
I have a few more questions based upon those answers.
Figures:
House value: $317500
Loan value: $260000
Salary: $38100
Savings: $10000
Hope that helps...
I'm in the process of buying a house as you might or might not know. I am going to live in it for six months to receive the FHOG. I then want to rent it out and build up some equity over a few years and then buy another IP. When it comes to the figures, I understand where they come from and where they go, but I wish to understand it in a more simple term. I want to know whether (in my situation) it's better to pay Principle and Interest, or Interest only. I want to know, with my current salary am I able to do this? (high 30k pa). I want to know what funds I put where when I start renting it (IE: Maintainance, PM fees, Rates) etc.
I have a few more questions based upon those answers.
Figures:
House value: $317500
Loan value: $260000
Salary: $38100
Savings: $10000
Hope that helps...
Given the limited number of replies I would suggest that you put this question into another forum as it will probably be overlooked here under the current title.
My preference would be to get a loan with a 100% offset that is interest only.
Your lender will be the one to tell you if you can do it or not. If not, then talk to a couple of lenders who have the product (100% offset on interest only loan) you need and see if it is available to you on your salary and with your deposit. Better still go through a good mortgage broker from the forum and they will steer you in the right direction.
I would put all the incoming funds from the property into the offset account and just draw down on that what is needed to pay the interest and any costs associated with the property. Additional costs will come from Salary. As I understand it, salary could also be credited to your offset account helping you to save some interest costs on the loan.
Good luck.
My preference would be to get a loan with a 100% offset that is interest only.
Your lender will be the one to tell you if you can do it or not. If not, then talk to a couple of lenders who have the product (100% offset on interest only loan) you need and see if it is available to you on your salary and with your deposit. Better still go through a good mortgage broker from the forum and they will steer you in the right direction.
I would put all the incoming funds from the property into the offset account and just draw down on that what is needed to pay the interest and any costs associated with the property. Additional costs will come from Salary. As I understand it, salary could also be credited to your offset account helping you to save some interest costs on the loan.
Good luck.
