Decissions, decissions?
The situation:
Mid 30's married 3 kids, building investmensts to fund retirement. Serviceability is an issue, PPOR is in great location don't want to move / sell / rent it, do want to get rid of mortgage. What to do, cash bonds? or sell pay off debt buy more? Would like to stop having to work in 5 years or so, eg work when I want to doing what I want.
Bank values
PPOR - 550k value | 230k debt
IP 1 - 250k value | 135k debt | 190wk | joint names
IP 2 - 250k value | 170k debt | 310wk | joint names
IP 3 - 250k value | 245k debt | 320wk | joint names
IP 4 - 350k value | 330k debt | 500wk | family trust
I've thought about cash bond and use that to service loans to buy more IP's but not sure if this is the best way to go, gut feels is selling IP 1 & 2 pay out PPOR mortgage and then use salary to service more IP loans. IP 2 is a 3b/room house and 2b/room unit 500m from beach should be able to sell at 300k so the cash from sale of 1 and 2 will almost pay out the PPOR mortgage.
Umm, what to do?
I've been scratching the head for a couple of months wondering what to do so I thought I might ask for a different opion.
Cheers
Quoll
The situation:
Mid 30's married 3 kids, building investmensts to fund retirement. Serviceability is an issue, PPOR is in great location don't want to move / sell / rent it, do want to get rid of mortgage. What to do, cash bonds? or sell pay off debt buy more? Would like to stop having to work in 5 years or so, eg work when I want to doing what I want.
Bank values
PPOR - 550k value | 230k debt
IP 1 - 250k value | 135k debt | 190wk | joint names
IP 2 - 250k value | 170k debt | 310wk | joint names
IP 3 - 250k value | 245k debt | 320wk | joint names
IP 4 - 350k value | 330k debt | 500wk | family trust
I've thought about cash bond and use that to service loans to buy more IP's but not sure if this is the best way to go, gut feels is selling IP 1 & 2 pay out PPOR mortgage and then use salary to service more IP loans. IP 2 is a 3b/room house and 2b/room unit 500m from beach should be able to sell at 300k so the cash from sale of 1 and 2 will almost pay out the PPOR mortgage.
Umm, what to do?
I've been scratching the head for a couple of months wondering what to do so I thought I might ask for a different opion.
Cheers
Quoll