Ok, here's the scenario:
My wife and I both own a property which we purchased in a our own names a few years before we met. The properties are both 2 bed units.
Currently we are living in my wife's property and I have been renting my property, which thanks to current interest rates / rental increases has become +ve geared.
In the next 6-12 months we intend to purchase a larger property (more bedrooms needed) and retain IP's. I would like to extract some equity from the two IP's to free up cash to purchase our property?
Is the best strategy (in terms of negative gearing of investment loans) to refinance my current IP to extract equity to purchase my wife's property from her. At this point all the loans are purely for investment only. The proceeds of the property sale are passed to my wife who can then (with me) buy our larger property.
The IP loans would be a maximum of 80% of property value (avoiding mortgage insurance). I earn the greater salary and hence would be benefit the most from any -ve gearing strategies.
I am new to property investment and have stumbled into it by accident rather than design. However, I do find very interesting to read some of the advice on this website.
Any comments would be greatly received,
Thanks
The Curious Investor!
My wife and I both own a property which we purchased in a our own names a few years before we met. The properties are both 2 bed units.
Currently we are living in my wife's property and I have been renting my property, which thanks to current interest rates / rental increases has become +ve geared.
In the next 6-12 months we intend to purchase a larger property (more bedrooms needed) and retain IP's. I would like to extract some equity from the two IP's to free up cash to purchase our property?
Is the best strategy (in terms of negative gearing of investment loans) to refinance my current IP to extract equity to purchase my wife's property from her. At this point all the loans are purely for investment only. The proceeds of the property sale are passed to my wife who can then (with me) buy our larger property.
The IP loans would be a maximum of 80% of property value (avoiding mortgage insurance). I earn the greater salary and hence would be benefit the most from any -ve gearing strategies.
I am new to property investment and have stumbled into it by accident rather than design. However, I do find very interesting to read some of the advice on this website.
Any comments would be greatly received,
Thanks
The Curious Investor!