Hi, first I'll give you some background information.
Last year my sister and I both inherited a house to share. I'm not going to specify where this house is, but we recently had it valued for 300k. The amount owing on the mortgage is just shy of $80,000.
Now I'm not a stupid person, I know that I can borrow up to $220,000 in equity to use on whatever I want. Anyway, I think we should buy an investment property with this extra money and use a portion of the rent to obviously pay back the equity borrowed.
My sister and I do not earn a lot of money, in fact, together it's not even 50,000 annually- She seems to think that there is no way we'll be able to afford the repayments that we'll incur by taking out this amount of money.
What are our options? We don't want to just sit on this house and do nothing. What are the advantages/disadvantages of buying multiple properties or a singular one?
My sister seems content in sitting on this house and watching the price rise, but I want to do something with it, help me decide my options. We're very new to the property market and young - < 23 years old.
Thanks for your help.
Last year my sister and I both inherited a house to share. I'm not going to specify where this house is, but we recently had it valued for 300k. The amount owing on the mortgage is just shy of $80,000.
Now I'm not a stupid person, I know that I can borrow up to $220,000 in equity to use on whatever I want. Anyway, I think we should buy an investment property with this extra money and use a portion of the rent to obviously pay back the equity borrowed.
My sister and I do not earn a lot of money, in fact, together it's not even 50,000 annually- She seems to think that there is no way we'll be able to afford the repayments that we'll incur by taking out this amount of money.
What are our options? We don't want to just sit on this house and do nothing. What are the advantages/disadvantages of buying multiple properties or a singular one?
My sister seems content in sitting on this house and watching the price rise, but I want to do something with it, help me decide my options. We're very new to the property market and young - < 23 years old.
Thanks for your help.