Your expert advice please ...

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29-12-2010, 05: 07 PM your expert advice please ... say I am very new to this property get the buzz. I probably will miss critical information, so please bear with me and really dumb down if you can.

I have a few options and need some expert advice that under current conditions please.

Currently I own property in Petone I tenanted and managed by specialists. Rent the property is $ 450 per week. QV, this property is $ 450 k and I have a mortgage to $ 166 k, I'm currently paying Max payments for two weeks in an effort to reduce it as quickly as possible, while I can. I am staying with relatives, my advice is a minimum $ 100 per week. I'm about ready to take my own again and saw another house I like. This property is $ 580 k I thought the only way I could buy that property will sell my current, but it looks as if the Bank comes to the party. At the same time, I asked my property manager feel tenants on possible private sale from me, but I would need to sell at least $ 450 k (last registered evaluation was $ 454 k). First home buyers I doubt this price is in their area. But if I keep homes drops to lowest mortgage payments will be included in the rent. Then I could afford to pay $ 1000 for two weeks on the new mortgage loan.

So I am wondering what to do. Should continue to look for sale (private) know it's not the best time? Or should I try to have both properties? New home is valued at $ 650 k, but divorce case suppliers are desperate to sell. I truly hope this thread it airs, although I realize how green is my voice!

I have all advice please. Go easy on me!

Thank you

29-12-2010 07: 18 PM Mmm. I'd keep IP if I could or sell and buy IP with better yields.

Total $ 1030K
mortgage $ 746 K (166 + 580)
capital $ 284 K
LVR 72%
This app LVR, so it's not too risky.

But ... Maybe I'm missing something, but how do you care mortgage loans from $ 1900 in two weeks? At best you can get an interest only on the IP's $ 450 K for several years, which is $ 1073 in two weeks at the current rate of 6.2%. That leaves you with $ 296 K on a new mortgage and $ 827 in two weeks, as would be required to pay a rate of 31 years.

And that does not make grants to fill vacancies, interest rate rises, or two sets of rates, insurance, repairs, etc.

Whether you can increase your income, for example by adopting a boarder at the new location?

29-12-2010, 09: 53 PM, I think, for starters, you have not taken into account $ 450pw ($ 900f/n) must still be obtained an IP address lease. Now just $ 1000f/n deficit (excluding rates, insurance, maintenance, etc.).

In addition to this you might continue to qualify for certain costs against your income (most likely the interest portion of your IP (if you have successfully targeted at $ 450 k) Is likely to be quite significantly reduce that figure.

Good luck as you do.

Last edited by Perry; Today at 10: 46. 29-12-2010 11: 19 PM you should talk to your accountant. Personally, I'd keep the IP, but you need to organize it, so as much as possible is tax deductible. You talk about "drops to lowest mortgage payments will be covered under the rent", but that's not the way to get the best tax breaks. Now seems to be the time to refinance your best advantage.

Be careful not to be told in the cross of properties as this will affect your situation, if you want to sell IP-down tracks.

Also be careful deliberation private sales through professional because they could get snarky about missing on Commission.

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