Hello everyone!
We think we have found the property that has the potential to become our first IP.
Just thought I would pick a few of the knowledgable brains around here to find out the best way to set it all up.
Hubby is currently on salary package of around $89K including Super. Sal sacs around $15K. I am a stay at home mum of two earning lots of love (ie no money!)
We have $100K in cash ready to invest from the sale of our PPOR late last year and are currently living in a relatives property rent free (absolutely ideal!).
We have found a property interstate listed at $150K. I have been told by the agent that it has a rental potential of $160 pw, however, if floors are polished and the whole house is given a paint - the agent advises they have someone that can do this for us for around the $4K mark - the property would have a rental potential of $200+ pw.
Based on all this - a couple of questions:
1. Should we use the money we have towards purchasing the property therefore only borrowing around $50K then redraw the equity later on when needed (hopefully for the second IP)? Is accessing the equity in a property pretty straightforward?
2. Should we borrow the full amount and put the money we have in an offset account? Is this easier or more practical than the above ^^ scenario?
3. Whose name would you recommend putting the property in? Hubby's, mine or both?
Sorry if it is a bit longwinded....I am incredibly excited about the whole investing adventure we are about to undertake.
I would be deeply grateful for any advice you are able to give
We think we have found the property that has the potential to become our first IP.
Just thought I would pick a few of the knowledgable brains around here to find out the best way to set it all up.
Hubby is currently on salary package of around $89K including Super. Sal sacs around $15K. I am a stay at home mum of two earning lots of love (ie no money!)
We have $100K in cash ready to invest from the sale of our PPOR late last year and are currently living in a relatives property rent free (absolutely ideal!).
We have found a property interstate listed at $150K. I have been told by the agent that it has a rental potential of $160 pw, however, if floors are polished and the whole house is given a paint - the agent advises they have someone that can do this for us for around the $4K mark - the property would have a rental potential of $200+ pw.
Based on all this - a couple of questions:
1. Should we use the money we have towards purchasing the property therefore only borrowing around $50K then redraw the equity later on when needed (hopefully for the second IP)? Is accessing the equity in a property pretty straightforward?
2. Should we borrow the full amount and put the money we have in an offset account? Is this easier or more practical than the above ^^ scenario?
3. Whose name would you recommend putting the property in? Hubby's, mine or both?
Sorry if it is a bit longwinded....I am incredibly excited about the whole investing adventure we are about to undertake.
I would be deeply grateful for any advice you are able to give