Hi All,
Again this site is a great resource for learning which has helped us in the past and i'm hopeful for some feed back to get us to the next level.
We took a few years off in terms of property acquisition while we built up our businesses.
Currently we own 2 properties with valuations of about 2.3m and have debt which is also against the business of 1.3m
So I guess now that the business is running well and we are saving somewhere between 5k-8k per month we are considering purchasing more properties with the intention to hold for a passive income in 10 -15 years. (We are 41 & 40)
Just not sure the best way forward..
We have been on Interest Only since we purchased but are now thinking maybe we should change this over from a 30 year term to a 20 year P&I term to start paying down debt..
Is this advisable or should we look to use our 500k equity and monthly saving to purchase properties somewhere else? Our two properties are in Queenstown and have nearly doubled since we owned them.
Im leaning towards looking in Dunedin but it could be anywhere, to me Queenstown is peaking and there will be better opportunities in the future.
The two properties are in a Look through company with one bank so I guess the question with regards to serviceability is should we go to the bank and get the 500k into a revolving credit so it sits at 20%. Use that money as deposits for another 4 properties (120k each) in Dunedin on properties around the 300k mark? Is it 40% deposit requirements if there is a loop hole we could get 6-8 properties etc
Put the lot on 20 year P&I loans and use our monthly savings to pay down the revolving credit account? Hold long term and reevaluate in 5 years or so?
Very nubbie question I'm sure..... We have been lucky and done well already but we just want to make it to the next level without a huge amount of risk so we can draw a passive income in the future.
All the best
Murph
Again this site is a great resource for learning which has helped us in the past and i'm hopeful for some feed back to get us to the next level.
We took a few years off in terms of property acquisition while we built up our businesses.
Currently we own 2 properties with valuations of about 2.3m and have debt which is also against the business of 1.3m
So I guess now that the business is running well and we are saving somewhere between 5k-8k per month we are considering purchasing more properties with the intention to hold for a passive income in 10 -15 years. (We are 41 & 40)
Just not sure the best way forward..
We have been on Interest Only since we purchased but are now thinking maybe we should change this over from a 30 year term to a 20 year P&I term to start paying down debt..
Is this advisable or should we look to use our 500k equity and monthly saving to purchase properties somewhere else? Our two properties are in Queenstown and have nearly doubled since we owned them.
Im leaning towards looking in Dunedin but it could be anywhere, to me Queenstown is peaking and there will be better opportunities in the future.
The two properties are in a Look through company with one bank so I guess the question with regards to serviceability is should we go to the bank and get the 500k into a revolving credit so it sits at 20%. Use that money as deposits for another 4 properties (120k each) in Dunedin on properties around the 300k mark? Is it 40% deposit requirements if there is a loop hole we could get 6-8 properties etc
Put the lot on 20 year P&I loans and use our monthly savings to pay down the revolving credit account? Hold long term and reevaluate in 5 years or so?
Very nubbie question I'm sure..... We have been lucky and done well already but we just want to make it to the next level without a huge amount of risk so we can draw a passive income in the future.
All the best
Murph
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