Hi
I rented out my four bedroom house for $380 a week last year when I moved in with my fiancé. I have an interest only offset loan for $210K with ANZ and the house is worth around $400K.
I can't move back to my house as (a) I have tenants and (b) it will not be cost effective to move back when I am getting good rent to cover interest and expenses.
I do not want to pay rent as IMHO it is money wasted. What I was thinking was:
1. Draw some equity out of the house.
$400K - $210K - $190K.
80% of $190K is around $150K.
2. Look at buying another house in Cairns for ~$300K so $330K with expenses
Use equity for 20% deposit and 10% expenses = $60K+$30K=$90K
Take out a loan for 80% = $240K
3. Repayments on $240K loan at 7.05% are $350 a week. I bring home $700 a week after tax.I don't have any other loans or expenses and no dependents.
Is this feasible and how can I tweak this to best advantage.
Thanks in advance, Cam
I rented out my four bedroom house for $380 a week last year when I moved in with my fiancé. I have an interest only offset loan for $210K with ANZ and the house is worth around $400K.
I can't move back to my house as (a) I have tenants and (b) it will not be cost effective to move back when I am getting good rent to cover interest and expenses.
I do not want to pay rent as IMHO it is money wasted. What I was thinking was:
1. Draw some equity out of the house.
$400K - $210K - $190K.
80% of $190K is around $150K.
2. Look at buying another house in Cairns for ~$300K so $330K with expenses
Use equity for 20% deposit and 10% expenses = $60K+$30K=$90K
Take out a loan for 80% = $240K
3. Repayments on $240K loan at 7.05% are $350 a week. I bring home $700 a week after tax.I don't have any other loans or expenses and no dependents.
Is this feasible and how can I tweak this to best advantage.
Thanks in advance, Cam