PPR into IP + how to get another PPR on the way
Hi Everyone,
I have a query I hope you can shed some light on for me.
My husband and I are owner occupiers of a 1 bedroom apartment in Melbourne CBD. I've researched and found that the amount we are paying on our mortgage ( principle and interest) a month is the same amount we could rent it out a month. We have lived in the property for 3 years so there's still a fair amount to pay off. We bought the property for $297,000 and it's worth about $430,000 now.
If we turned it into an investment property is there any way we could use this property to help us buy a second property ( for us to owner occupy) worth $230,000 for instance. What would the process be? How much of our own savings would we have to have behind us?
I've been reading about negative gearing an equity but ultimately I don't really know how this applies to the above situation.
If anyone could shed some light on this, give some advice etc, I would greatly appreciate it.
thanks in advance
Champas
Hi Everyone,
I have a query I hope you can shed some light on for me.
My husband and I are owner occupiers of a 1 bedroom apartment in Melbourne CBD. I've researched and found that the amount we are paying on our mortgage ( principle and interest) a month is the same amount we could rent it out a month. We have lived in the property for 3 years so there's still a fair amount to pay off. We bought the property for $297,000 and it's worth about $430,000 now.
If we turned it into an investment property is there any way we could use this property to help us buy a second property ( for us to owner occupy) worth $230,000 for instance. What would the process be? How much of our own savings would we have to have behind us?
I've been reading about negative gearing an equity but ultimately I don't really know how this applies to the above situation.
If anyone could shed some light on this, give some advice etc, I would greatly appreciate it.
thanks in advance
Champas
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