Hi guys, just thought i'd let everyone how helpful this forum has been! I've been lurking for a couple of years.
So, I've just turned 24 and three months ago I purchased an AFH home for 185k, I borrowed 95% and so with LMI I have a loan of 178k. I have 50k in an offset account while I live in the home to keep the payments down.
I've done some renos (5k worth) on the place and it's been valued at 245k.
Approx rental value is 275-300 a week.
Plan is to live in it for the 6 months then to rent it out, it should be about neutral. I've found another home for 205k that I want to buy and use immediately as an IP, would rent for 300 a week.*
My gf and I will be getting married next year and will want to buy a PPOR. I earn 85k a year, Chelsea's studying so I'll just buy this second one in my name, but by the time we get PPOR she'll be on 60k.
How should I structure loans to buy the 205k home, can I use equity from current home? Or equity and cash? Also, once they are both rentals how do you keep track of expenses for tax purposes? Do you have one credit card for IP expenses? Does all rental income go into the corresponding home loan?
Also, we won't spend more then 350k on PPOR, which will be an IP down the track anyway!
Currently my 178k loan is on variable with CBA.
Thanks a tonne guys!
So, I've just turned 24 and three months ago I purchased an AFH home for 185k, I borrowed 95% and so with LMI I have a loan of 178k. I have 50k in an offset account while I live in the home to keep the payments down.
I've done some renos (5k worth) on the place and it's been valued at 245k.
Approx rental value is 275-300 a week.
Plan is to live in it for the 6 months then to rent it out, it should be about neutral. I've found another home for 205k that I want to buy and use immediately as an IP, would rent for 300 a week.*
My gf and I will be getting married next year and will want to buy a PPOR. I earn 85k a year, Chelsea's studying so I'll just buy this second one in my name, but by the time we get PPOR she'll be on 60k.
How should I structure loans to buy the 205k home, can I use equity from current home? Or equity and cash? Also, once they are both rentals how do you keep track of expenses for tax purposes? Do you have one credit card for IP expenses? Does all rental income go into the corresponding home loan?
Also, we won't spend more then 350k on PPOR, which will be an IP down the track anyway!
Currently my 178k loan is on variable with CBA.
Thanks a tonne guys!