Good morning Paul

Not too much of a problem! I have a 1 bedroom unit full owned I live in and have just bought anither 1 bedroom unit $252000.00 - mortgage $288000.00 which the tenant vacates in January 2020. Should I move in there and pay a lower interest rate and receive $4700 refund from Stamp Duties or keep it rented out at $350.00 per week? Thankyou in advance

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Hi Liz,

Thank you for your comment. Unfortunately Paul cannot reply to questions in the comment section. We will pass your message on to him for consideration in the Ask Paul section of Money magazine.

- Money team

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I'm not a financial adviser, but I'm not sure the information here is enough to provide good advice.

All my calculations here have been done quickly from my mobile phone so may be inaccurate.

I calculate that David is paying just over $1900 in interest. Depending on his LVR, he could refinance with an online only bank. One of the better known ones is currently offering 2.84% P&I, so making a ~$250 a month saving based on a 30 year loan, with the added benefit of building equity in the property. That $250 a month could make a big dent in the credit card debt quite quickly.

Alternatively, David could consider renting. Depending on where he lives (again, we don't have this information), he could possibly find a suitable property for his family for $400 a week, so a similar outgoing to the P&I mortgage above. This would also have the added benefit of meaning he doesn't need to pay any maintenance costs, and is protected from any potential decrease in value of his property, although also meaning that he wouldn't benefit from any potential increase in value.

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