Rental Investment

[aturo]

Finally got a rental investment in Brisbane the monthly collection can meet mortgage payment. Any Ideas how I can reduce mortgage payment and taxes so that I can use the extra funds to get another rental building?

[samprime]

You can reduce the amount of mortgage interests that you pay as well as taxes that accumulate in order to invest the savings in another housing project. The sooner you clear your mortgage, the better for you since you can save quite a lot. Mortgage Institute of Australia offers you a mortgage interest calculator that enables you test the truth of this statement.

[gmerriel]

Aturo, currently there might not be many options for you to reduce the costs of your mortgage or increase your rent, although if the bank will allow you to, you might be able to negotiate an interest only mortgage so that you don't pay off any principle amounts. Many investors use this method as it can decline their monthly costs and can provide them with more capital for their next investment.
Further down the road you can get the bank to bring an independent valuer to you home which may show that your home has increased in value. This means you can withdraw that equity out from the mortgage that you currently have. Again, an easier way to purchase your next investment property, rather than saving.

Cheers,
Grant Merriel
Realty Forum - Australia's #1 Real Estate Community