Hi guys,
Another newbie hopelessly lost and needing advised ( )
Need some advise as to what we are about to do makes sense.
My wife and I own our PPOR outright and own 2 x IP near by.
Currently we owe our lender $400k for the 2 IP's
We have been keen to buy another property a suburb closer to where we want to live as it would assist with many of our day to day activities
My wife and I think the only way to do this is to place one of the IP’s on the market.
If we sell at the price we want (and we believe we will) that means our debt to the bank will only be $40k. We plan to buy in the suburb we want and turn our current PPOR into an IP.
What we don’t understand is what the pitfalls are if we go ahead with this plan.
What other alternatives are there?
Your feedback is greatly appreciated.
Regards
Q
Another newbie hopelessly lost and needing advised ( )
Need some advise as to what we are about to do makes sense.
My wife and I own our PPOR outright and own 2 x IP near by.
Currently we owe our lender $400k for the 2 IP's
We have been keen to buy another property a suburb closer to where we want to live as it would assist with many of our day to day activities
My wife and I think the only way to do this is to place one of the IP’s on the market.
If we sell at the price we want (and we believe we will) that means our debt to the bank will only be $40k. We plan to buy in the suburb we want and turn our current PPOR into an IP.
What we don’t understand is what the pitfalls are if we go ahead with this plan.
What other alternatives are there?
Your feedback is greatly appreciated.
Regards
Q