I raised this question as a side-issue in another thread, but it seems like a good question to ask.
I am in Melbourne. Our house is valued $290K by Council Rates but the house next door is going to Auction soon and their expectation is $350K, so I think that is a reasonable estimate.
Our mortgage is $130K, leaving us around $220K equity.
Mortage has another 18 years left, roughly, at about $1060 per month I think.
At our current rate of paying it off we should clear the mortgage in 5 years approximately.
Should I pay the mortgage off as fast as possible or divert some of the money into an IP (on the assumption that I'll be very unlikely to find a positively geared property unless I do something alternative like wrapping etc - in which I have no experience [heck, I have no experience in IP full stop]).
Will I have to cross-collateralise the loan?
What would be the suggested minimum maximum IP investment borrowings you would recommend based on existing equity and let's say $800-1000 per month available for servicing the loan (on top of rental income etc).
I am in Melbourne. Our house is valued $290K by Council Rates but the house next door is going to Auction soon and their expectation is $350K, so I think that is a reasonable estimate.
Our mortgage is $130K, leaving us around $220K equity.
Mortage has another 18 years left, roughly, at about $1060 per month I think.
At our current rate of paying it off we should clear the mortgage in 5 years approximately.
Should I pay the mortgage off as fast as possible or divert some of the money into an IP (on the assumption that I'll be very unlikely to find a positively geared property unless I do something alternative like wrapping etc - in which I have no experience [heck, I have no experience in IP full stop]).
Will I have to cross-collateralise the loan?
What would be the suggested minimum maximum IP investment borrowings you would recommend based on existing equity and let's say $800-1000 per month available for servicing the loan (on top of rental income etc).