Hi everyone,
First of all id like to say a big thankyou to all the Somersoft members for doing such a great job in this forum. Us newbie’s ask soo many questions and we do really appreciate the information the more experienced guys and gals give us. Thank you.
Just plodding along living and paying off our PPOR that we purchased in May 2009. It’s a very small house (11sq) on a largish block of land (680sq) with approx $70k in equity built up due to a discounted sale price. (Owe 160k, Value 230k). My partner and I are starting to consider how we may be able to make use of this fortunate head start.
Our income story go’s like this. I make a very average $40k PA and my partner is not working at all. She receives government payments while looking after our baby girl (Now 10 months old) of $3,792 PA so in total we make $43,792. Our monthly mortgage payment is $1000, so you can see we are pretty stretched in regards to our cash flow at the moment.
The possibilities we have come up with are the following
- Live in PPOR and apply to sub divide the backyard, built another house out the back and rent it out. Keeping both houses for CG.
- Live in PPOR and apply to sub divide the backyard, sell the backyard land and use these funds to pay down the PPOR. Helping our cash flow.
- Live in PPOR and pay it off as we are, improving it as we go and enjoy the big backyard and watch the CG go up with the land content.
I just turned 30 yrs old and my partner turns 39 this year. We are on a very small income and feel there should be some way we can make use of our discounted purchase price.
The question I guess im putting forward to you is, what would you do in our situation? We want to be able to purchase residential IP’s through out the next 10-15 years and with CG, be able to LOE by approx 2025.
What ways would you “gear” and make good use of the situation we are in?
What other options along with the ones stated would you recommend?
Any questions, advice and information is greatly appreciated.
Cheers
Mick
First of all id like to say a big thankyou to all the Somersoft members for doing such a great job in this forum. Us newbie’s ask soo many questions and we do really appreciate the information the more experienced guys and gals give us. Thank you.
Just plodding along living and paying off our PPOR that we purchased in May 2009. It’s a very small house (11sq) on a largish block of land (680sq) with approx $70k in equity built up due to a discounted sale price. (Owe 160k, Value 230k). My partner and I are starting to consider how we may be able to make use of this fortunate head start.
Our income story go’s like this. I make a very average $40k PA and my partner is not working at all. She receives government payments while looking after our baby girl (Now 10 months old) of $3,792 PA so in total we make $43,792. Our monthly mortgage payment is $1000, so you can see we are pretty stretched in regards to our cash flow at the moment.
The possibilities we have come up with are the following
- Live in PPOR and apply to sub divide the backyard, built another house out the back and rent it out. Keeping both houses for CG.
- Live in PPOR and apply to sub divide the backyard, sell the backyard land and use these funds to pay down the PPOR. Helping our cash flow.
- Live in PPOR and pay it off as we are, improving it as we go and enjoy the big backyard and watch the CG go up with the land content.
I just turned 30 yrs old and my partner turns 39 this year. We are on a very small income and feel there should be some way we can make use of our discounted purchase price.
The question I guess im putting forward to you is, what would you do in our situation? We want to be able to purchase residential IP’s through out the next 10-15 years and with CG, be able to LOE by approx 2025.
What ways would you “gear” and make good use of the situation we are in?
What other options along with the ones stated would you recommend?
Any questions, advice and information is greatly appreciated.
Cheers
Mick