Hi all,
My wife and I are currently looking at selling and moving to a semi rural house (both in SEQ).
Currently the finances are:
PPOR
Worth 350k
Owe 250k
Income
70k & 60k
We are about 2 weeks away from putting it on the market to sell, using the 100k to pay of personal debts and purchase a new house (LVR to be about 97%), and have some change in the bank (10-20k for renos, contingency, etc).
Because the wife has just started her job, she was not included on the new home loan application (pre approved on my wage only to 350k), although we are both on the current house.
Now this has got me thinking……is there a way to hang onto the house as an IP?
I'm not sure how lenders work with our current arrangement.
My idea was to:
Rent the house out for 350 p/w (I have confirmed this is the going rate for the area)
Continue to pay the mortgage 2000 p/m
Utilise the equity to pay off the debts and as a deposit to obtain a new mortgage for ~300-350k (repayments 2100-2400 p/m) - Not sure how this would be structured….??
On paper, the repayments are not an issue as we have 2 wages, however only mine is being used on the new house mortgage. How would a lender view the current mortgage and future rent to the new mortgage? Would it count as 1k loan outgoing (half) and additonal income of 175 p/w against my salary?
Can anyone suggest a solution to hang onto the current house or would it be best to sell up and start afresh again?
Thanks!
My wife and I are currently looking at selling and moving to a semi rural house (both in SEQ).
Currently the finances are:
PPOR
Worth 350k
Owe 250k
Income
70k & 60k
We are about 2 weeks away from putting it on the market to sell, using the 100k to pay of personal debts and purchase a new house (LVR to be about 97%), and have some change in the bank (10-20k for renos, contingency, etc).
Because the wife has just started her job, she was not included on the new home loan application (pre approved on my wage only to 350k), although we are both on the current house.
Now this has got me thinking……is there a way to hang onto the house as an IP?
I'm not sure how lenders work with our current arrangement.
My idea was to:
Rent the house out for 350 p/w (I have confirmed this is the going rate for the area)
Continue to pay the mortgage 2000 p/m
Utilise the equity to pay off the debts and as a deposit to obtain a new mortgage for ~300-350k (repayments 2100-2400 p/m) - Not sure how this would be structured….??
On paper, the repayments are not an issue as we have 2 wages, however only mine is being used on the new house mortgage. How would a lender view the current mortgage and future rent to the new mortgage? Would it count as 1k loan outgoing (half) and additonal income of 175 p/w against my salary?
Can anyone suggest a solution to hang onto the current house or would it be best to sell up and start afresh again?
Thanks!