Whats Next?

[celsioraus]

Ill lay it out flat.

I have a house i bought for 940k which is now worth about 1.2m and it is cash flow positive. My name is also on my brothers house which has 350k remaining which he has not taken me off yet.

I spoke to the bank and she said i can borrow 700k with my name on his house and 850k without. Assuming I can get my name off his house i can afford to buy 2 units.

Im lookin at buying a 1 or 2 bedroom apartment for around 400-450k in dee why and rent it out for about 400 - 450 a week. I assume Itll take a few years until its cash flow positive.

Does anyone reccomend I buy 2 apartments or just buy one and wait 6 months to a year and re-asess before buying again. My rent is nil as I live in the house and my wage is about 130k with no dependants.

What do you guys think i should do.

 

[The Y-man]

Which house do you live in? The brother's?

The Y-man

 

[celsioraus]

Hi

Sorry, no i live in my own house.. i live there and get 900pw rent. brothers house i have nothing to do with

 

[The Y-man]

Hi

Sorry, no i live in my own house.. i live there and get 900pw rent. brothers house i have nothing to do with

Oooh, this could get interesting....

"Rent" or "board"?

The Y-man

 

[MichaelPark]

Oooh, this could get interesting....

"Rent" or "board"?

The Y-man

I'm gonna guess if he has nothing to do with his brothers house, it'd just be board, or brotherly love .

$900 a week in rent is crazy haha, guess I'm just use to Brisbane prices.

 

[celsioraus]

Hahaha wait.. i stuffed this one up lol.

I own my own house. I live in my own house but also get 900pw rent from the other part of the house.

My brother lives in his own house seperate from me

 

[Kinnon Bell]

Do you receive rent in the sense that a lease agreement has been drawn up and you claim the income or is it more of a board situation with nothing official in place?

 

[celsioraus]

Does it make a difference? Its a bit of both..

 

[D.T.]

Does it make a difference? Its a bit of both..

Makes a big difference on
A) whether you can include that income in your loan application or not, and
B) whether you'll pay cgt or not when it comes to sell

 

[The Y-man]

....and whether you are declaring the rental income for tax purposes and claiming costs or whether it is "cash in hand"

The Y-man

 

[PJB]

It wont make a difference if your rental income is "official" or not, I have just obtained finance from NAB where they have used rental income from another property I have ( but receive no rent as my inlaws live there ) all I needed was a letter from an estate agent stating how much the property would rent for in todays market

 

[celsioraus]

And if your tenants are depositing the same amount of money into your bank which your loan approver is looking at it can also be verified.

Either way the point of my original question was missed. Basically it is,.. do i pay down the mortgage on a CF+ loan or buy another property

 

[Noknee]

Ill lay it out flat.

I have a house i bought for 940k which is now worth about 1.2m and it is cash flow positive. My name is also on my brothers house which has 350k remaining which he has not taken me off yet.

I spoke to the bank and she said i can borrow 700k with my name on his house and 850k without. Assuming I can get my name off his house i can afford to buy 2 units.

Im lookin at buying a 1 or 2 bedroom apartment for around 400-450k in dee why and rent it out for about 400 - 450 a week. I assume Itll take a few years until its cash flow positive.

Does anyone reccomend I buy 2 apartments or just buy one and wait 6 months to a year and re-asess before buying again. My rent is nil as I live in the house and my wage is about 130k with no dependants.

What do you guys think i should do.

Since nobody has answered your original question I will!

Personally if I had 700 and wanted to buy in that area I would be buying house and land.
Dee why for 400 -450 probs won't get you anything that amazing and yes I know 700 for house and land is stretch but IMHO a better investment

Also depends on how old depreciation blah blah with how long it will take to be positive

Personally I think a while!

I would go narrabeen or freshie over dy any day!!!
Any unit in particular? Or age etc

 

[D.T.]

And if your tenants are depositing the same amount of money into your bank which your loan approver is looking at it can also be verified.

Either way the point of my original question was missed. Basically it is,.. do i pay down the mortgage on a CF+ loan or buy another property

Popular opinion around here is to never pay down debt whilst in acquisition phase