Witzl,
Can you explain how you will achieve this?
Is it just a simply moving out of your PPOR and then turning the property into an IP?
How long did it take you pay off your PPOR ?
Witzl,
Can you explain how you will achieve this?
Is it just a simply moving out of your PPOR and then turning the property into an IP?
I assume Witzl is meaning debt recycling. This is when you channel all your income including from investmests etc into your ppor loan to reduce the balance leaving your interest on investment loans to capitalise.
You effectively reduce the debt on ppor and increase the debt on investment loans.
We are putting $6k into the mortgage offset account per month, so 1st PPOR will be paid off in 8 years!
Like the others though, we are going to buy more IPs, and keep the home loan on IO for as long as we can, so I voted over 20 yeaars too
Tess, just how big is your home loan? 6K payment X 12months X 8 Years is about $600K, plus what ever the interest / minimum payments is makes for what seems like a big mortgage!
Not that I'm against big mortgages....
Sheesh ... our entire household earns about $3k a month, give or take ... but after rent coming in, the mortgage is about $40pw. Next year if things go to plan we'll be positive after rent by $100pw, and that includes the PPoR. Fingers crossed. Trying to grovel money to pull this off out of the family at the moment.
PPOR is IO as I will be converting it to an ip at some stage in the future
Those who have IO mortgages on your PPOR, may I ask how much your mortgage is for?
I was told that banks don't like IO for PPOR mortgages. We still have $338k left on our PPOR mortgage. I think it's a big sum and I'm wondering if we are better off paying it down some more before switching IO or better off going IO now?
I'm not sure if there is any real different actually as the same money would still go into the account to offset the interest.
I was told that banks don't like IO for PPOR mortgages. We still have $338k left on our PPOR mortgage. I think it's a big sum and I'm wondering if we are better off paying it down some more before switching IO or better off going IO now?
I'm not sure if there is any real different actually as the same money would still go into the account to offset the interest.
My first PPOR was paid off in approx 2 years by doing a deal with another older property that I bought soon after my PPOR.
As you can tell by my name I am a painter,(Actually a house doctor)I was adding approx $100,000 value to my customers houses after 2-4 weeks work on them, and realized I could be doing it to my own.
Bought an old PIG (That's what I call a dump) done it up , sold pretty well straight away and paid my PPOR off in full , also my car loan.
As you can tell by my name I am a painter,(Actually a house doctor)
I was adding approx $100,000 value to my customers houses after 2-4 weeks work on them, and realized I could be doing it to my own.Bought an old PIG (That's what I call a dump) done it up , sold pretty well straight away and paid my PPOR off in full , also my car loan.
Why pay it off when you can access the equity and buy IP's with it?
Ours was nearly paid off and then we refinanced, bought an old house, knocked it down and built new. Then revalued the new property and used the equity to buy IP's.
This way we have a more expensive PPOR and a bigger CGT exemption plus we are still investing in the property market so we won't be missing out on any IP gains either.
Ours was nearly paid off and then we refinanced, bought an old house, knocked it down and built new. Then revalued the new property and used the equity to buy IP's.
This way we have a more expensive PPOR and a bigger CGT exemption plus we are still investing in the property market so we won't be missing out on any IP gains either.
Not all of us can access that equity - I have around $100k equity in my current house and I want to build a new house that will cost $100k. The catch is, the serviceability limit on our income is only $30,000 more than what we currently owe. So, no house, and I will be selling in a few weeks to get that cash out.
Creative buying and selling gets us a house to live during the build AND a new build ... for $30k extra debt. I really really don't want to move house twice (we're going to hire a container for storage to limit what we need to move), but the end result means I can live with that.
