G'day all…
My wife and I have 3 IP's and are currently building our PPOR…our LVR's are quite high (90-95%) and we were thinking of holding off for 12-18 months before reinvesting but I have found a positive cash flow property in the Hobart CBD Tas. We have about $30k in an offset account and on combined wages of $170k gross.
In July next year we will start a 12month study leave both on half pay….. I feel like this next property is definetley affordable but thought I would throw open the question to hear peoples advice, as my wife needs a lot of convincing. I am in the process of crunching the numbers now….any positive or negative arguments for or against would be appreciated. Cheers
tuggerhey, i dont think u'v given enough information about your position for anyone to offer you advice.
I dont see any harm in buying another property if it's cash flow positive but you have to consider the implications if interest rates were to rise
yeah suchy we have our other three IP's fixed IO loans for 3 years so that is all secure and stable, while our PPOR is variable on $280k… I suppose the great unknown is where will interest rates be when we come off the 3 year fixed….mind you by than I would hope our properties will be positive with rental increases and tax implications….
Hi Tugger
Youre LVRs are very high, you have low cash reserves and your incomes will halve in the comming year – sounds like it would be very risky to attemp another one. Unless maybe you could go back to work full pay if things suddenly go bad.
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
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