Hi - looking to buy my 2nd property/ 1st investment property

Hi everyone,

Im starting to think I am in a good position financially to get into investment properties. I bought my first home which I occupy 4 years ago for 240k I have chipped the loan down to 120k with 70k excess payments.

My current goal is a lifestyle goal of which originally I wanted to get a bigger block of land (approx 4000sqm) somewhere to live in, which i am on track to being able to do within the next 7 years comfortably.

But my financial goals would be to become financially independent by 40 which is about 15 years. I realise getting an investment property(s) would most likely set my lifestyle goal of getting that dream house back a few years which I can stomach.

My thoughts were to finish the current house loan and then get another mortgage on this house to use for the next house and rent my current house out to gain the tax benefits on the loan (if this is possible). But im starting to think an investment property wouldn't be too hard to manage for me at the moment.

What would you do in my shoes, and who are the people to talk to? My mortgage broker?

Thankyou and look forward to learning from you guys

 

If this is the case AND you intend to keep your existing property as an investment then paying down the loan is not the best idea, better off putting that extra cash in an offset against the loan so when it becomes an investment property the debt is tax deductible, in my opinion.
If you pay the existing loan off then borrow against it to buy your next property and live in that new property then the loan against the existing home will not be tax deductible. Just because it's secured by the Investment property doesn't mean it's tax deductible, it's the purpose/use of the funds that determine tax deductibility.
Suggest you get some tax advice and correct loan structuring before making any decision and before you pay out that existing loan...

 

Ok awesome I already have an offset open that I use as my daily account, thanks for the info good to know that if I did it the way I was thinking it wouldn't be tax deductible. Will start just building up the offset then. Thankyou