We are bit scared to owe more than 1 million bucks. Any advice is welcome.
Here is our situation;
We are a couple in late 20s with 2 kids living in Christchurch.
We have a mortgage free home and 3 rentals. (1x CHC and 2 X Hamilton).
Our Home : $ 400,000 (No Mortgage)
3 x Rentals : Value$800,000 Mortgage $700,000
Rental Income: $55,000
Expenses (Interest Only + rates +Insurance +main): $ 50,000
Profit from Rentals: $ 5000
Salaries: $165,000 (gross)
Issue: We want to build a new house(150m2 4 bed) in spareland next to one of the rentals. This would cost us $300,000. Rent would be $450-550
This would make our total borrowings more than 1milion bucks. Thinking of this number is bit scary.
Should we do it?
We don’t have any mentor and learnt everything thoughProperty Talk threads since 2007.Have read few threads over and over.
Here is our situation;
We are a couple in late 20s with 2 kids living in Christchurch.
We have a mortgage free home and 3 rentals. (1x CHC and 2 X Hamilton).
Our Home : $ 400,000 (No Mortgage)
3 x Rentals : Value$800,000 Mortgage $700,000
Rental Income: $55,000
Expenses (Interest Only + rates +Insurance +main): $ 50,000
Profit from Rentals: $ 5000
Salaries: $165,000 (gross)
Issue: We want to build a new house(150m2 4 bed) in spareland next to one of the rentals. This would cost us $300,000. Rent would be $450-550
This would make our total borrowings more than 1milion bucks. Thinking of this number is bit scary.
Should we do it?
We don’t have any mentor and learnt everything thoughProperty Talk threads since 2007.Have read few threads over and over.
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