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Where to start ?

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Patrick | 10 Sep 2013, 10:36 AM Agree 0
Hi all thank you in advance for taking the time to read this,

I am 28 and have owned and lived in a house on the Gold Coast QLD for two years.

We bought the house for 380k and currently owe 315k on the mortgage.

We are looking at turning this house into an investment rental property and buying a new house to live in. We would like this house to be the first in hopefully a long and successful investment portfolio but have no idea where to start looking and what we should watch out for on the way.

If anyone has any suggestions they could share or help on who would be the right people to see for advice it would be greatly appreciated.

In the mean time i will keep researching till i find the right direction to go in :)

Thank you in advance for your help.
  • Eos Property | 10 Sep 2013, 03:29 PM Agree 0
    Based on the information provided your level of accessible equity is limited.

    For example if you can secure a 90% loan against the value of your current property this will give a total of $342K less the $315K you currently owe - this releases, at best, $27K and that is without any consideration of any mortgage insurance payable.

    If this property is going to become an IP in the future then I suggest you seriously look at changing your existing mortgage to interest only with an offset account linked to it. Plough surplus cash into the offset account.

    This means that when the time comes you'll be able to grab your cash savings and use this towards your new home without compromising the tax deductibility of your existing property loan.

    I would start by finding yourself a good broker and getting them into your team. Suggest giving Andrew Kemeney a call 0407557638 of Kastle Home Loans.

    Knowing Andrew I suspect he'll say need more equity - but he'll be able to give you good advice.
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