confused & lost - need urgent help/advice please

[dollar]

Hi

am a newbie, keen to learn and this is my 1st posting. Please forgive me if I make mistakes or am not clear enough. Here it goes:

1. my PPOR is debt free in surburb A. 4 double b/r. potential rent of $550 p/w ? theres enough land at the back of my hse to build a 2 bedroom GF.

2. my IP is in surburb B, 5mins drive from my hse. IP land size 1055 sqm with 1 hse on piers/post sitting in the middle of the land. ANZ loan of $470K is 100% interest only. Rent p/w $480

3. we would like our kids to this high school in surburb C, 7 mins drive from my hse. we are currently "out of area" for the school to take our kids. surburb C is a brandnew subdivsion and land approx 544 sqm is approx $360K plus 4b/r hse approx $250K.

4. Got $185K in "savings" off setting my IP
5. gross yearly wages - $80K
ps: my finance/accounting knowledge is weak at the moment

Objective/ Question
1. would like to move to surburb C so thats kids go to a good high school in couple of yrs.
2. whats the best way to achieve this without sell my hse or IP ?
- is it financially or investor smart/safe to buy land/hse in surburb C now, approx total cost (L -360K & hse 250K) $610K ?
- or shld I 1st build GF at the back of my hse.
- or shld I sell my PPOR, approx selling price $535K
- what are my other options

any advice/tips will be appreciated.
sorry for the long post, didnt know how to explain any better

 

[Aaron_C]

Dollar - would be a good idea to work out your affordability and see whether you can actually do both the construction of the GF and buy in suburb C where you want to live. Hard to say from what you've told us but there's lots of people in your similar situation.

 

[Rooster]

Urgent?.....Really?

 

[Rolf Latham]

Hiya

Welcome

Couple of things that come to me pretty much straight away.

1. Your current PPOR is fully owned. Thats a good thing ! Unless you buy another PPOR with borrowings and rent the old one out. Your loan for prop c will be NON deductible pretty much in full( minus the 185 cash that you can park against the loan).

On the surface from what I can see so far it would make sense to sell the current PPOR once your PPOR c is ready for occupation.

Typically, id suggest looking at a "spousal or unit trust" sale of the current PPOR, to "regear it" but from what I can see so far, i expect this will not be a financially viable option for your circumstances

Sit with a decent broker that can take you through the options, find a good accountant and work those options through.

You can move to house C, no probs, you could just choose to maximise the financial benefits for some

ta
rolf

 

[VYBerlinaV8]

Rent out you PPOR in Suburb A. Use this money to pay the rent on a property in Suburb C.

That way you can try out Suburb C, and you keep your existing property.

When the kids finish high school, move back to your PPOR in Suburb A.