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Dilemma

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robcig | 23 Feb 2019, 01:56 PM Agree 0
Hello all, great information on this site, would love to hear your thoughts on my dilemma. We are in our mid fifties and own a home in the Hills district of NW Sydney. The house is (was) valued at $1.2m about a year ago however, property prices seem to have come down at least 10-15%. We owe $120,000 on our home and purchased a house and land package in Box Hill for $982,000 also a year ago. The bank will lend us the full amount without issue. We based our move to becoming debt free on achieving $1.2m on the sale of our home, which seems a stretch now. Being realistic, we might only get $1m which means we will have a bigger mortgage than we have now. For me, this is not an option. Should we rent out the new home and negatively gear it considering the million dollar mortgage and continue to live in the old home? I'm OK having to contribute the difference on an interest only loan, and the rent would come in at $2800 per month. I’m guessing I’d have to cough up maybe $2000 which is tax deductible. What should we do?
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