Can someone show me the path to enlightenment..?? please...!!!
Situation.
Husband - Earning $80K
Wife - Earning $35K
2 Kids under 8.
Property / Loan Status.
1.Old ish PPOH @ Normanhurst.Conservatively self valued @ $420K atleast.(If rented out expected to get atleast $350/week)
Paying principle and interest. Still owing $255K to CBA on PPOH.
Borrowed $60K against PPOH to buy IP below. Both on variable @ current 5.65%
2. New ish IP - Conservatively self valued $340K @ Quakers Hill. Rented @ $320/week.
Interest only loan Owing CBA $260 on 9 % locked till 2011
Wifey now wants to move to Quakers Hill for following reasons
1. Better house.
2. Closer to friends and family
Option 1.
Move into IP @ QH and Rent out PPOH.
Cop the huge interest bill on chin till we come out of it.
We may not get much advantage of neg gearing on PPOH @ N'Hurst.
Option 2.
Rent out both IP and PPOH and neg gear on both.
For our own residence rent out any wife approved accomodation @ QH.
Options 3
Buy IP # 2 (if possible i.e.) and make it PPOH and start paying P/I mortgage.
Option 4. As suggested by Somersoft wizards.
Feel free to ask any questions as I may have missed finer details.
Thanks and regards
Situation.
Husband - Earning $80K
Wife - Earning $35K
2 Kids under 8.
Property / Loan Status.
1.Old ish PPOH @ Normanhurst.Conservatively self valued @ $420K atleast.(If rented out expected to get atleast $350/week)
Paying principle and interest. Still owing $255K to CBA on PPOH.
Borrowed $60K against PPOH to buy IP below. Both on variable @ current 5.65%
2. New ish IP - Conservatively self valued $340K @ Quakers Hill. Rented @ $320/week.
Interest only loan Owing CBA $260 on 9 % locked till 2011
Wifey now wants to move to Quakers Hill for following reasons
1. Better house.
2. Closer to friends and family
Option 1.
Move into IP @ QH and Rent out PPOH.
Cop the huge interest bill on chin till we come out of it.
We may not get much advantage of neg gearing on PPOH @ N'Hurst.
Option 2.
Rent out both IP and PPOH and neg gear on both.
For our own residence rent out any wife approved accomodation @ QH.
Options 3
Buy IP # 2 (if possible i.e.) and make it PPOH and start paying P/I mortgage.
Option 4. As suggested by Somersoft wizards.
Feel free to ask any questions as I may have missed finer details.
Thanks and regards