From: Andrew G
Hi all,
Here is my current position, and was curious to get some opinions on whether I've done the right thing, and what to do from here :
1. PPOR Value 180,000, Owe 31,000
2. IP #1 Value 82,000, Owe 70,000 (rent = 130/wk), Loan: P&I
3. IP #2 Value 82,000, Owe 70,000 (rent = 130/wk), Loan: P&I
At the current rate, I will have paid the PPOR off in about 2 years. Both my wife and I are 31 yrs old, and most of our combined income is going into the home at the moment to get rid of the mortgage.
Q: Does what you see above look 'ok' so far? I've only owned the IPs for one year now..
Q: Is it still best for me to pay most of our income into our own mortgage to get rid of it altogether?
Q: I like the idea of eventually owning the properties (P&I IP Loans). Our combined wages total $62,000 with us planning to start a family within 12-18 months. As I don't earn a whole lot, and I'll be buying cheaper properties which I can't claim any depreciation anyway, is it OK to continue purchasing properties P&I rather than I/O?
Q: I can save a STACK of interest by increasing my IP loan repayments by as little as $100/fortnight. Is it a good idea to add a 'little' bit extra to your IP loans just so you own them faster? (I'm looking to retire BEFORE 50, so I've got a 20 year plan).
I know there's quite a few questions there - thanks for anyone who takes the time to respond. I've been pretty open about my details, but I'd rather be honest from the start and get honest responses....
Also, last question. Current plan is to get more properties under 100K or just a bit over, so the rent return is higher. Not too bothered about capital growth as I'm in Adelaide and would prefer to stick to this state. I'm figuring that eventually I will own a higher % of the IP properties, so the combined loan repayments will snowball assisting me to pay them all off sooner. Is this a logical way of going?
Thanks,
Andrew.
Hi all,
Here is my current position, and was curious to get some opinions on whether I've done the right thing, and what to do from here :
1. PPOR Value 180,000, Owe 31,000
2. IP #1 Value 82,000, Owe 70,000 (rent = 130/wk), Loan: P&I
3. IP #2 Value 82,000, Owe 70,000 (rent = 130/wk), Loan: P&I
At the current rate, I will have paid the PPOR off in about 2 years. Both my wife and I are 31 yrs old, and most of our combined income is going into the home at the moment to get rid of the mortgage.
Q: Does what you see above look 'ok' so far? I've only owned the IPs for one year now..
Q: Is it still best for me to pay most of our income into our own mortgage to get rid of it altogether?
Q: I like the idea of eventually owning the properties (P&I IP Loans). Our combined wages total $62,000 with us planning to start a family within 12-18 months. As I don't earn a whole lot, and I'll be buying cheaper properties which I can't claim any depreciation anyway, is it OK to continue purchasing properties P&I rather than I/O?
Q: I can save a STACK of interest by increasing my IP loan repayments by as little as $100/fortnight. Is it a good idea to add a 'little' bit extra to your IP loans just so you own them faster? (I'm looking to retire BEFORE 50, so I've got a 20 year plan).
I know there's quite a few questions there - thanks for anyone who takes the time to respond. I've been pretty open about my details, but I'd rather be honest from the start and get honest responses....
Also, last question. Current plan is to get more properties under 100K or just a bit over, so the rent return is higher. Not too bothered about capital growth as I'm in Adelaide and would prefer to stick to this state. I'm figuring that eventually I will own a higher % of the IP properties, so the combined loan repayments will snowball assisting me to pay them all off sooner. Is this a logical way of going?
Thanks,
Andrew.
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