Hello all.
I've been lurking here a while and have found this forum very helpfull. I have just signed a contract on the following appartment and thought I'd better find out that I haven't done the completely wrong thing while I still have a cooling off period.
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=104501830&s=qld&snf=rbs&t=res
This unit is in the same complex with more pics.
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=104345008&s=qld&snf=rbs&t=res
Now the situation we are in, is that I bought our current PPoR in February just around the corner where this IP is. Our intentions are to eventually rent a larger house in the area, so while we have some extra cash we thought we'd buy out first IP in the same area. Any loss on the IP will also help me tax wise. Our PPoR is very similar to the IP except has a double lock up garage and second bathroom.
At present, I have 110k equity in my PPoR, and intend on borrowing 100% for the IP on an interest only loan. The IP has been rented long term at $320/wk with the lease up for renewal one month after settlement (60 days). After paying both mortgages and before tax breaks we will have approx $4k/month spare which we intend on pumping into our PPoR for the time being. We don't want to get ourselves to tight at the moment financially as we want the spare cash to do some travel next year.
AS I first asked, are we completely doing the wrong thing?
Cheers.
I've been lurking here a while and have found this forum very helpfull. I have just signed a contract on the following appartment and thought I'd better find out that I haven't done the completely wrong thing while I still have a cooling off period.
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=104501830&s=qld&snf=rbs&t=res
This unit is in the same complex with more pics.
http://www.realestate.com.au/cgi-bin/rsearch?fslm=1&a=o&id=104345008&s=qld&snf=rbs&t=res
Now the situation we are in, is that I bought our current PPoR in February just around the corner where this IP is. Our intentions are to eventually rent a larger house in the area, so while we have some extra cash we thought we'd buy out first IP in the same area. Any loss on the IP will also help me tax wise. Our PPoR is very similar to the IP except has a double lock up garage and second bathroom.
At present, I have 110k equity in my PPoR, and intend on borrowing 100% for the IP on an interest only loan. The IP has been rented long term at $320/wk with the lease up for renewal one month after settlement (60 days). After paying both mortgages and before tax breaks we will have approx $4k/month spare which we intend on pumping into our PPoR for the time being. We don't want to get ourselves to tight at the moment financially as we want the spare cash to do some travel next year.
AS I first asked, are we completely doing the wrong thing?
Cheers.