Hi All,
My family and I have been really fortunate, to be recently mortgage free, in a decent area in Auckland. No IP's, but a few smaller investments. To celebrate, we want to do some travelling next year with the family.
The house we feel, is not an ideal rental, for example the property maintenance (garden pool, building etc) is high.
We also would prefer at some point, to live in an area which offers better high schooling options for our kids.
The question I have is, I would like to make a start on some retirement assets, but also live for a year without regular (job) income.
I have in my mind selling my PPOR and using the cash to purchase IP's structured in a way to give me some cash monthly, and still retain a foot in the property market, for when I need it in the future.
Is this a wise decision, or am I better putting the cash from the house in a manged fund or similar, paying dividends? My concern with that, is the risk and lack of capital gain.
Or could I borrow the value again of my house, sell the house, and purchase several IP's at 50% LVR, structured so that the IP's mortgage is self sustaining, and providing some cashflow?
Would the bank lend on expected IM return, or would serviceability be an issue, for the time I am away?
My family and I have been really fortunate, to be recently mortgage free, in a decent area in Auckland. No IP's, but a few smaller investments. To celebrate, we want to do some travelling next year with the family.
The house we feel, is not an ideal rental, for example the property maintenance (garden pool, building etc) is high.
We also would prefer at some point, to live in an area which offers better high schooling options for our kids.
The question I have is, I would like to make a start on some retirement assets, but also live for a year without regular (job) income.
I have in my mind selling my PPOR and using the cash to purchase IP's structured in a way to give me some cash monthly, and still retain a foot in the property market, for when I need it in the future.
Is this a wise decision, or am I better putting the cash from the house in a manged fund or similar, paying dividends? My concern with that, is the risk and lack of capital gain.
Or could I borrow the value again of my house, sell the house, and purchase several IP's at 50% LVR, structured so that the IP's mortgage is self sustaining, and providing some cashflow?
Would the bank lend on expected IM return, or would serviceability be an issue, for the time I am away?
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