Greetings,
First time post, long time fan of PT. This is an incredible forum to say the least. I have a situation on hand which I can't get my head around. I have been trying to rack my brains on the best possible alternative, but the more I think, the more the confusion and the vision is getting blurred. Any suggestions are graciously welcome.
I own my residence property which is valued at $325,000, with a mortgage of $260,000. Based on the equity, I bought my first IP in West Auckland in Oct '06 - a 3 bedroom on leasehold for $265,000 - just got a RV for it for $285,000. I have now secured some revolving credit on the equity of both the properties and will be using some of it doing some improvements to the rental. This should take the value to about $295K I think (hope). The rental is under my LAQC and my LVR at the moment is 95% which I am not comfortable about.
The dilemma is:
>> When should I get the improvements done to the rental? Immediately, or wait for a couple of months? I would like to increase the rent after making the changes, but since its not a year since the tenants have moved in, I don't want to lose them as a result of a rent increase.
>> I am keen on buying another property in the next couple of months (with the intention to hold), but I cannot afford to top up the rent as I am already paying about $100 per week on the existing rental in addition to my residential mortgage. Having said that, would I be better off selling the rental and starting again? Though I would love to hold, I think it is limiting my next steps.
I know that trading and assignments are an option to help me pay off some of the mortgage and increase the equity. I am in full time employment and therefore feel limited in a sense. Is trading too difficult? And does it require full time dedication?
What else can I do? I have the drive and passion to succeed, but I fear that I am fighting a losing battle with nowhere to go! Can anyone help me set it straight?
Many thanks for any guidance.
First time post, long time fan of PT. This is an incredible forum to say the least. I have a situation on hand which I can't get my head around. I have been trying to rack my brains on the best possible alternative, but the more I think, the more the confusion and the vision is getting blurred. Any suggestions are graciously welcome.
I own my residence property which is valued at $325,000, with a mortgage of $260,000. Based on the equity, I bought my first IP in West Auckland in Oct '06 - a 3 bedroom on leasehold for $265,000 - just got a RV for it for $285,000. I have now secured some revolving credit on the equity of both the properties and will be using some of it doing some improvements to the rental. This should take the value to about $295K I think (hope). The rental is under my LAQC and my LVR at the moment is 95% which I am not comfortable about.
The dilemma is:
>> When should I get the improvements done to the rental? Immediately, or wait for a couple of months? I would like to increase the rent after making the changes, but since its not a year since the tenants have moved in, I don't want to lose them as a result of a rent increase.
>> I am keen on buying another property in the next couple of months (with the intention to hold), but I cannot afford to top up the rent as I am already paying about $100 per week on the existing rental in addition to my residential mortgage. Having said that, would I be better off selling the rental and starting again? Though I would love to hold, I think it is limiting my next steps.
I know that trading and assignments are an option to help me pay off some of the mortgage and increase the equity. I am in full time employment and therefore feel limited in a sense. Is trading too difficult? And does it require full time dedication?
What else can I do? I have the drive and passion to succeed, but I fear that I am fighting a losing battle with nowhere to go! Can anyone help me set it straight?
Many thanks for any guidance.
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