Hello , this is mum's situation. her current house .
she bought as a first home in January 2009 on P&I, 100 offset standard variable loan .
1st property total purchase $ 350 000
loan 190 000
first home owners grant 18 000
cash deposit 142k
current loan 178 k to date
now she would like to make this first home an investment property and purchase a brand new property (town house in good location) to live in as PPOR @ 390k, what is the best way to finance strategy for on-going investing?
it is posible to re-finance that 142 cash deposit + equity gained in last year and a half to put in new townhouse PPOR so she doesnt have to borrow much to buy this new ppor?
worth a mention is she will probably live in this place for next 25 years so i advise her to borrow less as possible if any at all as she have another 150k cash on top in the Offset account.
i am trying to point to her that theres no tax deduction on loans on your ppor. and the cost of re-financing her 1st home would be worth it in long run, to monthly repayments of interest only 90% LVR or 80% LVR as long not secured to her new house.
she bought as a first home in January 2009 on P&I, 100 offset standard variable loan .
1st property total purchase $ 350 000
loan 190 000
first home owners grant 18 000
cash deposit 142k
current loan 178 k to date
now she would like to make this first home an investment property and purchase a brand new property (town house in good location) to live in as PPOR @ 390k, what is the best way to finance strategy for on-going investing?
it is posible to re-finance that 142 cash deposit + equity gained in last year and a half to put in new townhouse PPOR so she doesnt have to borrow much to buy this new ppor?
worth a mention is she will probably live in this place for next 25 years so i advise her to borrow less as possible if any at all as she have another 150k cash on top in the Offset account.
i am trying to point to her that theres no tax deduction on loans on your ppor. and the cost of re-financing her 1st home would be worth it in long run, to monthly repayments of interest only 90% LVR or 80% LVR as long not secured to her new house.