Join our investing community

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

    Joined:
    30th Mar, 2013
    Posts:
    1
    Location:
    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

    Income
    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

    Joined:
    20th Jul, 2012
    Posts:
    29
    Location:
    canberra
    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.

    Cheers

    Jeffery