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Should I keep this house and rent it out and buy another one?

Discussion in 'Introductions' started by Monzi77, 30th Mar, 2013.

  1. Monzi77

    Monzi77 New Member

    30th Mar, 2013
    Castle Hill, NSW
    Hi All

    I'm wanting some good advise please as I don't really understand the property market and I want to keep my house, rent it out and buy another one to live in.

    I am 35 yrs old, single and currently paying off a mortgage.

    Current House:
    Valued at $550k
    Mortgage: $120k
    Mortgage Repayments: $410 per fortnight
    Approx Rental Return: $500 per week

    New Property
    Value $550k
    Strata & Rates: $900 per quarter

    Annual Income: $90k
    Annual Bonus & car allowance upto $48k

    If someone could please let me know if this is doable and how much I will be looking at per month in mortgage repayments, that would be great!

    Thanks All
  2. jeffery85

    jeffery85 Active Member

    20th Jul, 2012
    Hey Monzi,

    There is still a few variables there e.g. interest rates, other investments & salary scarifies amounts, current loan structure etc. Best thing is to possibly sit with a broker and they can go through some loan structures with you & more personal information; Members equity are pritty good.

    Alternatively you can use some loan calculators here:

    Loan Repayments - MeBank

    Rams had an awesome property analyser calculator to that you put all of the information in and it showed you how everything looked for quite a period of time (if they don't have it anymore do a google search).

    Usually the best thing is to have your investment property loaned up to the max so your tax is tax deductible but i am unsure how it works with capital gains tax if you are currently accessing the equity from the house you live in to use to support the investment etc.