DH and I are considering our options when I return to full time work in the new year. We have a small villa style house (similar to townhouse) and believe it would be a great opportunity to hold onto it and rent it out and buy something bigger. I am just not sure of the logistics with all of this and pretty clueless with mortage type stuff.
What is equity? Is that the actual money that you have between what you own and what the house will sell/value at?
Do we need to save a whole new deposit for the next house or is there another way to leverage off our first homeloan?
What other costs are involved with renting out a property? (I can think of rental insurance, real estate fees to look after the renting?, maintenance, council rates)
As this is considered income, does it affect your child care benefits?
Any advice is greatly appreciated .