Hi all. Today turned out to be a very good day for me. Here goes…
I had about 20 mins to spare so I went into one of the local Real Estate agents to ask about some units for sale. I was informed that they had just listed one for $103K.
Being the same design etc ( same estate ) as my own I was quite taken aback considering that I paid $67k in ’98.
All of a sudden I have $35K to $40K equity in my unit. What to do now?
With what I have saved, and the now available equity, I am able to deposit another property somewhere AND update my car, without it costing me a cent ( except for increased loan payments ).
If I did this, it would make the current unit negative, but I would have two IPs instead of one.
Any suggestions?
“Looking forward to the day when I can tell the boss where to go”
Hi Myydral,
Congrats on your good news,
I would sugest you keep the loans separate, access the equity on your current unit and use these funds for the deposit and closing costs on the next purchase,
You are probably already aware that you will not be able to claim the interest on borrowed funds for the new car, cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
It wouldn’t really make your unit negative again. Any future borrowings would be for the new property and/or car, so any interest payments should be attributed to these. I suggest you leave the car out of it as it will get messy at tax time. (and cars are depreciating assets so should not be purchased on borrowed money). If you have cash like you say, use this to buy the car and borrow 100% + costs for the new house.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Myydral,
Ditto the previous comments – at this stage use your equity to progress your financial future.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Suggestions are right on target so far. Avoid cross collaralisation and most of all try to place loans with different lenders thus that cannot call all loans as part of a discharge clause for any future loan applications….. you know the one ” all accounts including cheque, credit and other loans must be paid in full to discharge this loan..”
Cheers,
KiwiKiwi, all accounts clauses are rare in Australia. I have yet to see one.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
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