Hello all
I am after some advice and i am sure the mountains of wisdom posting on this forum will come to the party.
current situation.
smoking hot wife (34) and me (36) and two kids under 4.
PPOR inner city perth. Value $950k, outstanding P&I loan of $390k with Bank A.
Also have another 20% IO loan against the equity of PPOR for IP1.
IP1 in SE Qld. Remaining 80% of purchase price an IO loan with Bank B.
For lifestyle and health reasons, thinking of moving interstate (and soon before kids start full time schooling).
Option 1 - simply sell PPOR and buy house $300k and land $450k. Effectively reduce our 390k mortgage to around 200k. Keep IP1, transfer 20% loan against current PPOR to new PPOR (that can be done yeh?).
But logistically, how would I go about option 1?
Would i get a new loan from Bank C for 80% of land value first (360k), and use existing equity in Perth PPOR for remaining 20% (90k) with Bank A? And then, sell PPOR, pay out 390k loan for PPOR, pay out recently acquired new loans for the land, transfer IP1 20% loan to new PPOR (which is just land at this stage), and then use what profit is left (~100k) and new construction loan (200k) for the build?
Option2 would be to somehow keep our existing perth PPOR but convert to rental. could i change P&I loan to IO loan and refinance it at the 390k and it would be tax deductible? If I could, my plan would be to borrow to do the land purchase and build.
If there is any other information needed to answer my questions, feel free to ask.
I am after some advice and i am sure the mountains of wisdom posting on this forum will come to the party.
current situation.
smoking hot wife (34) and me (36) and two kids under 4.
PPOR inner city perth. Value $950k, outstanding P&I loan of $390k with Bank A.
Also have another 20% IO loan against the equity of PPOR for IP1.
IP1 in SE Qld. Remaining 80% of purchase price an IO loan with Bank B.
For lifestyle and health reasons, thinking of moving interstate (and soon before kids start full time schooling).
Option 1 - simply sell PPOR and buy house $300k and land $450k. Effectively reduce our 390k mortgage to around 200k. Keep IP1, transfer 20% loan against current PPOR to new PPOR (that can be done yeh?).
But logistically, how would I go about option 1?
Would i get a new loan from Bank C for 80% of land value first (360k), and use existing equity in Perth PPOR for remaining 20% (90k) with Bank A? And then, sell PPOR, pay out 390k loan for PPOR, pay out recently acquired new loans for the land, transfer IP1 20% loan to new PPOR (which is just land at this stage), and then use what profit is left (~100k) and new construction loan (200k) for the build?
Option2 would be to somehow keep our existing perth PPOR but convert to rental. could i change P&I loan to IO loan and refinance it at the 390k and it would be tax deductible? If I could, my plan would be to borrow to do the land purchase and build.
If there is any other information needed to answer my questions, feel free to ask.