Hi Everyone
I have just been approved by the commonwealth for 2 loan one for purchase of land and the other for purchase of new house. I'm in a tight spot considering what is the best thing to do financially for myself. First some background info.....
My income $65K pa
Partner $20K pa
Currently have $24,000 in the bank doing sweet all nothing
I currently have an investment property I bought in 2009 for $452,000 I currently still owe the commonwealth $145,000 for it. I collect in the hand approx $350 per week letting it. My original plan was to own it outright before I went house hunting for myself this way the rent I collect each week and my pay will help me smash into the loan of the PPOR however I got impatient.
New loan sitting ready to be taken out on land $170,000
New loan sitting ready for purchase of house $275,000 Combine both loan for PPOR $445,000
What should I do now keep chipping away at investment or leave it alone, its in my partners name also so I can only claim tax benefit of 50% and last year I only got $1500 back in tax so its not really very tax advetageous. Where should I be scaling my payments down to on each loan for maximum benefit. Is there some sort of mathematical formula for this so I can make sure the commonwealth takes the least amount from me.
Also they are putting me on the wealth package no discussion on interest rate yet but on the papers he has written 5% but said we can discuss that all later. I have already asked for a good deal and told him I have looked at Ubank. I think its based on variable rate what should I be able to get him down to as im not afraid to walk and get a better deal as lets face it the biggest mortgage lender in Australia should be able to give a loyal customer a good rate.
I have just been approved by the commonwealth for 2 loan one for purchase of land and the other for purchase of new house. I'm in a tight spot considering what is the best thing to do financially for myself. First some background info.....
My income $65K pa
Partner $20K pa
Currently have $24,000 in the bank doing sweet all nothing
I currently have an investment property I bought in 2009 for $452,000 I currently still owe the commonwealth $145,000 for it. I collect in the hand approx $350 per week letting it. My original plan was to own it outright before I went house hunting for myself this way the rent I collect each week and my pay will help me smash into the loan of the PPOR however I got impatient.
New loan sitting ready to be taken out on land $170,000
New loan sitting ready for purchase of house $275,000 Combine both loan for PPOR $445,000
What should I do now keep chipping away at investment or leave it alone, its in my partners name also so I can only claim tax benefit of 50% and last year I only got $1500 back in tax so its not really very tax advetageous. Where should I be scaling my payments down to on each loan for maximum benefit. Is there some sort of mathematical formula for this so I can make sure the commonwealth takes the least amount from me.
Also they are putting me on the wealth package no discussion on interest rate yet but on the papers he has written 5% but said we can discuss that all later. I have already asked for a good deal and told him I have looked at Ubank. I think its based on variable rate what should I be able to get him down to as im not afraid to walk and get a better deal as lets face it the biggest mortgage lender in Australia should be able to give a loyal customer a good rate.