help - what to do?

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From: Anonymous


HI EVERY-ONE,
After reading Jan Somers book recently my Husband and I are wondering what would you advise to do; we currently live in near beach side suburb of Adelaide with a loan outstanding of $85,000 current market value approx $300,000. We also have an investment property inner city which we also have a loan outstanding of $88,000 current market value approx $160,000 receiving rent of @ $175.00 per week. Do we sell our home then downsize, purchase new home to live in loan free and then buy another investment property, do we sell our investment property and pay out our loan on the house we live in now and then borrow for another investment property or do we stay, keep both and just refinance to buy another IP? We are both aged 40, both work and would like to retire at 55? Any comments would be appreciated.
 
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Reply: 1
From: Rolf Latham


Hi

The reason you may not be receiving too many replies is that there is no right or wrong answer from the information youve provided.

What do you and hubby earn, other assets and liabilities, kids etc etc etc will all colour any answer.

Ta

Rolf
 
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Reply: 1.1
From: Samantha Lind


Howdy,
A little rule of thumb I like to keep is never sell unless you have too! ( unless of course I'm trading )If I don't need to sell and can afford to hold another property then that is always what I will do.
Just my opinion!
Sam
 
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Reply: 1.1.1
From: Manny B


What I would do is the following:

1. Ensure the loan on the rental property is IO, so that you try repay the loan off on the property you are currently living in.

2. Purchase another property utilising the equity you have gained from your rental property & ensure that is also on a IO loan

3. The rent you receive from the 2 properties should cover the IO loans & you can concentrate to pay off your house you live in. In a year's time re-assess your options/finances to see whether you can look for a 3rd IP.

Your main goal should be not to downsize your house & as we always hear on this website, NEVER EVER SELL

Good luck & happy investing...

Cheers,

Manny.
 
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