Hi folks,
I've been lurking here for the last 3 years but only recently signed up.
My wife and I have recently exchanged on a PPOR in Anna Bay. We have a house in Medowie that we had planned on converting to an investment however we came unstuck with a lower valuation than we needed to get the Anna Bay house.
Coincidentally, we got offered about $16k above the valuation and are about to go unconditional tomorrow (or so I'm told). I'm not worried if it doesn't sell as we have formal approval for the Anna Bay house so that will go ahead if the buyer falls through.
Basically, if the sale goes ahead we will have about $25k left over and I'm not sure how I want to use this. We could put $14k towards the deposit to the Anna Bay house and save around $5k in LMI, or cop the LMI and put the extra towards the next IP.
The other option is to renovate the new place which we will do at some stage either way but having recently renovated the Medowie house I would rather live in a finished home for a couple of years than rip it apart as soon as we move in.
The Scottish side of me is saying to pay the extra to save on LMI, my wife is saying pocket it and renovate/buy furniture. I also have a business that could do a lot with $25k but I would like to have a second IP under my belt soon too and with a $25k headstart I should be able to double that in 12 months. What would you do?
I've been lurking here for the last 3 years but only recently signed up.
My wife and I have recently exchanged on a PPOR in Anna Bay. We have a house in Medowie that we had planned on converting to an investment however we came unstuck with a lower valuation than we needed to get the Anna Bay house.
Coincidentally, we got offered about $16k above the valuation and are about to go unconditional tomorrow (or so I'm told). I'm not worried if it doesn't sell as we have formal approval for the Anna Bay house so that will go ahead if the buyer falls through.
Basically, if the sale goes ahead we will have about $25k left over and I'm not sure how I want to use this. We could put $14k towards the deposit to the Anna Bay house and save around $5k in LMI, or cop the LMI and put the extra towards the next IP.
The other option is to renovate the new place which we will do at some stage either way but having recently renovated the Medowie house I would rather live in a finished home for a couple of years than rip it apart as soon as we move in.
The Scottish side of me is saying to pay the extra to save on LMI, my wife is saying pocket it and renovate/buy furniture. I also have a business that could do a lot with $25k but I would like to have a second IP under my belt soon too and with a $25k headstart I should be able to double that in 12 months. What would you do?