I would like to run this by some more seasoned investors. I feel I am on the right path for me however am open to other ideas because I am still a novice in a lot of ways.
- I have PPOR 90% LVR. Property worth approx. $290-$300k if I were to sell it. Bank val came back at $285,000. Currently owe $234,000.
- I have a property which I purchased with my brother to help him out. He is living in the property and paying the full mortgage repayments. I was just on the loan for servicing and stronger application. Purchase price $347,000. Owe approx. 315,000.
- I am currently refinancing to another lender who will consider 95% LVR on IP which would enable me to buy a property locally for up to $250k. I am planning to buy something which requires a basic reno. My husband doesn't work and would do a lot of the work himself.
- My income this year is $220k but mainly commission based so can fluctuate year to year by a fair bit.
My concern is once I buy the next IP then equity in my place will be used up. I know through reno I should be able to increase value of IP and tap into that for next property. Rent after reno is forecast to be approx. $100p/w positive geared. But if I remain buying properties around $250k due to available equity this may limit my opportunities.
I understand I have plenty of disposable income to throw toward it however I am not wanting to factor this in as it will be used for reno's and to pay down my PPOR mortgage mainly to start with.
Also curious if I should buy another place, live in it while renovating and rent out my current PPOR. Will this strategy help with CGT 6 year rule? I don't particularly want to move all the time lol.
I want to thank you in advance for any assistance or direction you can give me.
- I have PPOR 90% LVR. Property worth approx. $290-$300k if I were to sell it. Bank val came back at $285,000. Currently owe $234,000.
- I have a property which I purchased with my brother to help him out. He is living in the property and paying the full mortgage repayments. I was just on the loan for servicing and stronger application. Purchase price $347,000. Owe approx. 315,000.
- I am currently refinancing to another lender who will consider 95% LVR on IP which would enable me to buy a property locally for up to $250k. I am planning to buy something which requires a basic reno. My husband doesn't work and would do a lot of the work himself.
- My income this year is $220k but mainly commission based so can fluctuate year to year by a fair bit.
My concern is once I buy the next IP then equity in my place will be used up. I know through reno I should be able to increase value of IP and tap into that for next property. Rent after reno is forecast to be approx. $100p/w positive geared. But if I remain buying properties around $250k due to available equity this may limit my opportunities.
I understand I have plenty of disposable income to throw toward it however I am not wanting to factor this in as it will be used for reno's and to pay down my PPOR mortgage mainly to start with.
Also curious if I should buy another place, live in it while renovating and rent out my current PPOR. Will this strategy help with CGT 6 year rule? I don't particularly want to move all the time lol.
I want to thank you in advance for any assistance or direction you can give me.
