Hi need sum advice My wife and I just sold our 1st house, we should come out with about 280k cashWe are looking at buying a few acres and large house for around 700k including stamp duty, we can service the mortgage no probs. I have an IP that I have had for 10 yrs value 310k owe 125k bought for 170k it positively geared, should we sell and use the money to lower our debt on out PPOR and try to pay down the loan over the next 5 yrs then build a new IP that we can claim max tax deductions or should I keep and pay down the PPOR slower. I see a big interest saving on PPOR loan by selling it and can see the market moving drastically (Maitland NSW) in the next 5 yrs Thoughts??— Thanks
Hi Stocko,
My first thought is to always consider what you can afford and whether the extra interest payments you will make are worth it considering the capital growth your IP can make (I'm an advocate of never selling property as long as you can maintain the debt and they appreciate!) over the next 5 years…
I certainly would not be paying down the IP loan and would if not already be switching it to interest only.
Your Mortgage Broker should be able to suggest ways in which you can structure the loan appropriately and save interest at the same time.
Richard Taylor | Australia's leading private lender
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