principal residence vs investment

[Harry01]

I have inherited a unit in Sydney Australia value $400k and have a mortgage on my home for $250k (Australia). I also have an investment property in another state value $300k and morgaged for $240k. I keep being given differing opinions on borrowing on Syd. unit and payoff the residential loan of $250k. Sole purpose tests, neg gearing, neutral gearing..... don't know who's advice to go with. by the way not terribly computer literate, please excuse me if I do something wrong. lol

h

[snafu]

Welcome to Savings Advice. There are several OZ participants who Blog regularly in the 'Blog' heading. What is your long term plan fort the recently inherited unit in Sydney? Do you have the time and interest in being landlord/manager?
Will/if rented, will sums garnered be sufficient to pay it's taxes, 1% set aside for upkeep, maintenance and costs should it become vacant and the mortgage payments? Will you manage the property and make needed repairs? What interest rate do you anticipate for a mortgage on the new unit?

Have you talked to a tax expert to ascertain the tax repercussions? In Canada, interest on a mortgage of a potential income producing property is a tax deduction while interest on a mortgage that is your primary residence is not. Would it be more efficient to sell the property out-right, pay off your residential mortgage and invest the remaining sum as well as discipline yourself to likewise re-direct your current mortgage payment to an investment program at your level of risk tolerance?

Understand that your current, residential, monthly payment includes principal, interest, taxes and possibly insurance, HOA or other applicable fees If you are more than 15 years from mortgage pay-out, you can likely save yourself a considerable amount of interest. It's critical to run your specific figures due to the way amotorization tables work.

Sorry to have more questions than answers but there is a lot of math involved that is specific to you.