Buying your next real estate is not always going to be an investment property. It can also be upgrading to a bigger, newer and a better dream home for yourself.
You could either be buying a new established property or looking to build one. Either way, it is definitely very exciting to buy your second home.
Hence, it is important to be aware of a few things during this time.
Once you have moved to your new home, you are either going to rent out your existing property or sell it.
If you are going rent it out, think about the possible rental income, consider the loan repayments and the property management expenses.
If you are going to sell it, you are going to have no debt or an end debt.
If you are thinking of constructing your second home, it is important to revisit your expenses. This is because while the home is being constructed, you will be having your current home loan repayments as well as the new repayments - peak debt situation. It is a good idea to ensure you have some cash buffer to help you through the build.
If you have good amount of equity build up in your current home, it can be used as a deposit for the second purchase as well.
Depending on your financial situation, your goals and objectives, we can find the right solution for you.