hi all,
been investing in property for a few years now, but am still VERY green at how it all works, in relation to loan structures, gearing ,etc...
And reading through these (very helpful !) forum threads over the past few months, I'm beginning to think i'm going about it (somewhat..), the wrong way...
I would dearly love to hear the opionions/advice of some of you seasoned, and much more experienced investors out there.
Here's my situation -
I'm in my early 30's, this is my portfolio thus far -
PPOR - own outright - value = $300k
IP#1 - owe $105K - value = $380k (rents at $300/wk)
IP#2 - owe $120k - value = $270k (rents at $250/wk)
IP#3 - owe $120k - value = $250k (rents at $220/wk)
IP#4 - owe $200k - value = $220k (rents at $250/wk) just purchased
You see, I have been paying off the loans (always) at P&I, thinking the best idea was to try and own them as soon as possible, not realizing that perhaps I should be going Interest Only, and freeing up cash to buy more..?..?
I am technically 'ahead' on my actual loan payments, by approx. $85k, and my bank manager suggested refinancing and using that to put towards paying off IP#1 completely, which i could then own outright within 12 months.
Then there would be $300/wk rent coming in as income, to help pay off the others..... Does this sound like the way to go..?
Any info or help is GREATLY appreciated, as I don't know who else to ask..?
Thanks heaps !
been investing in property for a few years now, but am still VERY green at how it all works, in relation to loan structures, gearing ,etc...
And reading through these (very helpful !) forum threads over the past few months, I'm beginning to think i'm going about it (somewhat..), the wrong way...
I would dearly love to hear the opionions/advice of some of you seasoned, and much more experienced investors out there.
Here's my situation -
I'm in my early 30's, this is my portfolio thus far -
PPOR - own outright - value = $300k
IP#1 - owe $105K - value = $380k (rents at $300/wk)
IP#2 - owe $120k - value = $270k (rents at $250/wk)
IP#3 - owe $120k - value = $250k (rents at $220/wk)
IP#4 - owe $200k - value = $220k (rents at $250/wk) just purchased
You see, I have been paying off the loans (always) at P&I, thinking the best idea was to try and own them as soon as possible, not realizing that perhaps I should be going Interest Only, and freeing up cash to buy more..?..?
I am technically 'ahead' on my actual loan payments, by approx. $85k, and my bank manager suggested refinancing and using that to put towards paying off IP#1 completely, which i could then own outright within 12 months.
Then there would be $300/wk rent coming in as income, to help pay off the others..... Does this sound like the way to go..?
Any info or help is GREATLY appreciated, as I don't know who else to ask..?
Thanks heaps !