Hello.
I am reasonably new to investing and do not want to build a large portfolio just a nest egg for financial stability and future retirement. Just seeking advise on the next move.
We have IP1 (310K) in Gosnells and current PPOR (310K) in Ferndale. All going great and all on one part-time income. We do not have the income for large mortgage payments and therefore are considering if we need to sell PPOR or IP1. These are under the ANZ breakfree package and we have one loan still available to us. We now wish to transition to new PPOR (approx 400K) as we are outgrowing our home and have since decided not to move into IP1 as orginally planned. It is renting well and with negative gearing, neutral financially. Turning our current PPOR into IP2 would mean it is highly positive geared. The bank says if we do turn it into IP2 they will lend us the money for next PPOR. Just wondering from you experienced forum investors what is the best way of going about this transition? Is a long settlement period good in order to rent out current PPOR or is it better to secure renters first and move into friends before buying? How do the banks view things? Any advise, tips or hints for the physical move or how to structure finances would be greatly appreciated.
Also do you think it is a good time to sell in Perth, how long do you generally hold onto a good IP for and what profit margin do you look for when you sell?
Many thanks in advance.
Newdawn.What you can do is get a rental appraisal for your current PPOR. Then when you purchase the new house you can service the new loan. Just avod cross collateralisation if possible – there’s no need to move out first.
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