Hi everyone I'm new and have spent the last two days reading near on every part of this forum trying to come up with an answer for Hubby and my's situation.
We are both 45 he is the main income earner and I have been the stay at home mum without income all of this time.
He earns gross $50000 a year and we have raised 3 kids on this and less sometimes and still managed to buy our prinnciple place of residence which is Water Front in River Heads / Hervey Bay Queensland. The value of this has risen (value today around $550000 - $600000) since we bought so we have around $200 000 equity but still owe $260 000 on the I + P loan.
With the interest rate rises happening this year we are worried that we may not be able to service our loan and eat at the same time. Plus pay his petrol costs to work (averaging $100 a week) with the distance (I've had no luck getting that part time job to help either)
We've never thought to invest in another property as the serviceality on a ip was a worry while the kids lived with us. Now they are independant we can ---- Please share your opinions
1. Take out an interest only loan for more money on the ppor to have 20% deposit on an IP and then borrow the 80% on the IP? (servicing both could prove difficult I've worked out we'd need his whole take home pay to pay this mortgage and the shortfall of the IP !!) ??
2. Sell up out of this growth position currently rising at 10% per annum) they aren't making anymore waterfront) and start again by owning our residence in a growth area outright and then going for property investments?
3. Higher risk but willing to give it a shot to hang onto our waterfront find a broker who could find us a lender who would lend us a line of credit for the maximum amount on our Ppor.
Buy the Ip and renovate (we are great at that) leaving the buffer of funds to drawn on to take up the short fall in both loans and costs assciated with owning properties. This would have to be a short term plan for the IP anyway. Max 2 years
Any other suggestions or better way to go around it? Idealy we'd like to keep this place but as rents aren't particularly good in this area (fishing village) we can't think about renting it out consistently So that's it
All opinions and help appreciated. Thanks Julles
We are both 45 he is the main income earner and I have been the stay at home mum without income all of this time.
He earns gross $50000 a year and we have raised 3 kids on this and less sometimes and still managed to buy our prinnciple place of residence which is Water Front in River Heads / Hervey Bay Queensland. The value of this has risen (value today around $550000 - $600000) since we bought so we have around $200 000 equity but still owe $260 000 on the I + P loan.
With the interest rate rises happening this year we are worried that we may not be able to service our loan and eat at the same time. Plus pay his petrol costs to work (averaging $100 a week) with the distance (I've had no luck getting that part time job to help either)
We've never thought to invest in another property as the serviceality on a ip was a worry while the kids lived with us. Now they are independant we can ---- Please share your opinions
1. Take out an interest only loan for more money on the ppor to have 20% deposit on an IP and then borrow the 80% on the IP? (servicing both could prove difficult I've worked out we'd need his whole take home pay to pay this mortgage and the shortfall of the IP !!) ??
2. Sell up out of this growth position currently rising at 10% per annum) they aren't making anymore waterfront) and start again by owning our residence in a growth area outright and then going for property investments?
3. Higher risk but willing to give it a shot to hang onto our waterfront find a broker who could find us a lender who would lend us a line of credit for the maximum amount on our Ppor.
Buy the Ip and renovate (we are great at that) leaving the buffer of funds to drawn on to take up the short fall in both loans and costs assciated with owning properties. This would have to be a short term plan for the IP anyway. Max 2 years
Any other suggestions or better way to go around it? Idealy we'd like to keep this place but as rents aren't particularly good in this area (fishing village) we can't think about renting it out consistently So that's it
All opinions and help appreciated. Thanks Julles