Recommendations for next step
Question from j updated on 29th March 2015:
We have $400,000 equity in our personal property and $150,000 in our rental (in a LTC). We are trying to decide if we should sell our personal property and buy something with a lower mortgage or to keep our current property and loan our equity to the LTC to purchase additional rental properties?
Any recommendations or considerations?
Our expert Kris Pedersen responded:
Hi J, a hard question without knowing more about what age you are at and what your goals actually are. Start with looking at what you are actually trying to achieve as you need to have this very clear before making a move either way. It's worth taking some tax advice through the process to ensure you are doing your numbers correctly as well in regards to how your after tax cashflow will actually look under the different scenarios. Regards Kris Pedersen
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz