Hi
My parents plan to retire in around 7 or 8 years.
They have 2 properties. Their PPOR and 1 IP. LVR is 20%
They dont have any other debt. Dad has been salary sacrificing into super. Mum has some company shares and super.
Mum and Dad both working and are on $70 K pa & $60 K pa
I've been trying to encourage mum to buy an ip. She is not sure if she has enough time to buy seeing that she is only working for another 7 or 8 years.
I think with their equity they would be able to put down a couple of deposits on 2 ips and would be able to fund the repayments from her own job or capitalising the interest via line of credit. This way also if one of them decides to retire sooner or gets sick they would be ok cos their line of cedit is being used to make the repayments.
I believe they have a great opportunity to do something and that it is not too late for them! Im trying to convince mum.
I think its a possibility that they could buy two $350 K villas.
Mum is not sure of the exit strategy though. I know there has been other similar posts here in the past about oldies buying and I will search but I was hoping to get some individual advice.
I suggested that she goes IO with all loans. Buy 2 ips, then in 8 years time perhaps sell 1 to pay off the other 3. They would live in one as their ppor and the other 2 rentals that would be unencumbered will help to supplement their super.
My parents plan to retire in around 7 or 8 years.
They have 2 properties. Their PPOR and 1 IP. LVR is 20%
They dont have any other debt. Dad has been salary sacrificing into super. Mum has some company shares and super.
Mum and Dad both working and are on $70 K pa & $60 K pa
I've been trying to encourage mum to buy an ip. She is not sure if she has enough time to buy seeing that she is only working for another 7 or 8 years.
I think with their equity they would be able to put down a couple of deposits on 2 ips and would be able to fund the repayments from her own job or capitalising the interest via line of credit. This way also if one of them decides to retire sooner or gets sick they would be ok cos their line of cedit is being used to make the repayments.
I believe they have a great opportunity to do something and that it is not too late for them! Im trying to convince mum.
I think its a possibility that they could buy two $350 K villas.
Mum is not sure of the exit strategy though. I know there has been other similar posts here in the past about oldies buying and I will search but I was hoping to get some individual advice.
I suggested that she goes IO with all loans. Buy 2 ips, then in 8 years time perhaps sell 1 to pay off the other 3. They would live in one as their ppor and the other 2 rentals that would be unencumbered will help to supplement their super.