Hi, I've been following MMM for a while but decided to ask for some help because I'm not sure what to do. I am 45, single have 75,000 in super, a $220 mortgage on a house that's worth about 750,000 and thinking about building an investment property in a beachside suburb for $335,000. The problem is I only work part time with an income of about 42,000 (after tax) because I study. A good aspect is that my house is big with 5 rooms and two bathrooms and two lounge areas and I live in Fremantle which is a hot spot and I rent out these rooms when I need to for about 170 a week each.
Should I just pay my mortgage off as quickly as possible or buy this investment property (which is 500 metres from the beach and should get about $350 a week rent)? Any advice would be greatly appreciated. Thank you!!
