Hello,
OK here goes my somewhat long winded situation and eventual query.
My aim is to accumulate several IPs to have a secure and comfortable future. Iam 26 years old.
As a result of a work transfer we are about to rent our PPOR (3br home) so it now becomes an IP. Purchase price (in Bundaberg area) was $89500 -FHOG= $82500. We paid $11500 deposit to have a $71k mortgage in July 2002. We now have a mortgage of $57500 paying 5.99% P&I over 25 years with Members Equity(Super Members HomeLoans). Once this place is rented out we will be 40 mins away paying $130p/w rent. Our combined incomes are $67k and I am very keen to buy another IP, perhaps a unit.
1.Should we refinance by going to a IO loan on the soon to be IP and open LOC to purchase another one?
2. What is the best way to structure our loans to purchase a second IP and then a third and so on?
Different authors tell you different things, so I just need advice which will assist us to accumulate IPs and therefore long term wealth. Thanks in advance.
OK here goes my somewhat long winded situation and eventual query.
My aim is to accumulate several IPs to have a secure and comfortable future. Iam 26 years old.
As a result of a work transfer we are about to rent our PPOR (3br home) so it now becomes an IP. Purchase price (in Bundaberg area) was $89500 -FHOG= $82500. We paid $11500 deposit to have a $71k mortgage in July 2002. We now have a mortgage of $57500 paying 5.99% P&I over 25 years with Members Equity(Super Members HomeLoans). Once this place is rented out we will be 40 mins away paying $130p/w rent. Our combined incomes are $67k and I am very keen to buy another IP, perhaps a unit.
1.Should we refinance by going to a IO loan on the soon to be IP and open LOC to purchase another one?
2. What is the best way to structure our loans to purchase a second IP and then a third and so on?
Different authors tell you different things, so I just need advice which will assist us to accumulate IPs and therefore long term wealth. Thanks in advance.