Renting out PPOR and purchasing second property

Hi all,

I've lurked on these forums for quite some time, but finally decided to join up and ask some questions. I'm looking to rent out our current PPOR and purchase a new property closer to the city.

Our situation is, we are a young couple with a 6 month old child. My partner is returning back to work shortly, part time. Her income below is pro-rated based on her full time salary, child is in childcare for the days my partner works.

Our situation currently is:
Primary income: $95k per year before tax
Secondary income: ~$33k

PPOR
Current valuation (by a valuer 3 weeks ago) $380,000
Current Morgage $330,000 @ 5.59%
Repayments: Approx. $1650/month

Future place of residence
Budget (hopefully) ~$650,000

We've also had a real estate agent out in the last week who has advised they can rent the property out for $450/week.

Some final details. I currently have a personal loan of around $20k (4 years remaining) years, which was from some debt consolidation. No credit cards, not a heap of savings. I have a company car/phone and don't pay any FBT or expenses related to this.

My question is, is this a feasible plan? Any advice?

 

It will be very hard as you have little equity and no savings. Your current loan is 87% LVR.

Have you considered just renting your place and renting another. You will get all the tax deductions and still can retain the CGT free status.