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Hi all, We became investors 2 years ago when we did the sums in a flat Auckland Market and realised it really wasn't worth selling our family home (in New Lynn) given the money we had spent fixing it up. We sold it to ourselves as a company, bought a 2nd house in the same suburb, of lesser value (smaller) and as a result the interest free mortgage on the first house is covered by the rent and our personal mortgage has been much reduced.
Fast forward 2 years and happily both properties have gained in equity and we have had the same good tenants for 2 years. However our personal income fluctuates greatly (self-employed) and we need to take steps to keep ourselves sliding backwards. We don't want to sell the investment, as a purchaser would soon pick apart the unpermitted downstairs (yes we were that naive when we bought it) and various other eccentricities that come with an old home. Also on advice of the agent that found our tenants she would rent it at $50 more per week if renting it out again now. We don't want to change or lose tenants though.
So should/can we take the equity gains out of the rental and add that to our personal mortgage - reducing that and saving us some money week to week? Is this actually allowed and/or a good idea as a short term fix? We are waiting for our personal incomes to improve before we do the obvious and use the equity in the rental to buy another investment property. We are not in a desperate position but want to maximise our finances so any advice welcome.
Fast forward 2 years and happily both properties have gained in equity and we have had the same good tenants for 2 years. However our personal income fluctuates greatly (self-employed) and we need to take steps to keep ourselves sliding backwards. We don't want to sell the investment, as a purchaser would soon pick apart the unpermitted downstairs (yes we were that naive when we bought it) and various other eccentricities that come with an old home. Also on advice of the agent that found our tenants she would rent it at $50 more per week if renting it out again now. We don't want to change or lose tenants though.
So should/can we take the equity gains out of the rental and add that to our personal mortgage - reducing that and saving us some money week to week? Is this actually allowed and/or a good idea as a short term fix? We are waiting for our personal incomes to improve before we do the obvious and use the equity in the rental to buy another investment property. We are not in a desperate position but want to maximise our finances so any advice welcome.
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