We are still renting. The whole 'family home' question rears it's head every time we try to invest. We own 2xIPs resale value of $435k, $450k and total equity $220k approx.
we are increasingly frustrated on many levels with renting and feeling unsettled. So our discussion turns to 'is it time to bite the bullet and get a family home?'
We keep putting it off but 7 years on and a few kids later we are really unsettled.
There is only one home I'm interested in as a PPOR and it's complicated. It's 'over $900'. Land is 1700m2.. It has a 3br home, 20m frontage , prime land, on top of the hill. There are sweeping beautiful views from the whole block. I've loved the charm of the home for about ten yrs. it's old and land value only to any but aesthetes!
the challenge is how to fund (and hold) the purchase.
My crazy dream is to somehow buy it keeping 800m2 for now as family home. goal- Pay $450-500k for the half. Which is a very good price for that location.
Ideas so far on how to fund it:
- somehow get approved to borrow $900k and have all the subdivision arranged so on settlement a developer buys half off us. Then we have a non TD mortgage off pp of $450-500k.
- JV - purchase partnership- have an agreement in place whereby we agree to subdivide and each pay half ...
-In an ideal world we'd keep all the land and work with a dev who'd sell villas OTP to fund it and we'd keep one as IP. But
we don't see how it's profitable for us to hold the vacant land while all the approvals took place. The house is rented now for $400pw. A $900k purchase is a massive mortgage and if PPOR it would be non TD. Although in this scenario we'd rent it out til it became profitable to live there. Which then defeats the point of a family home. Plus - wd prefer to pay out the PPOR mortgage ASAP.
Any other ideas how to fund it??? We don't know anyone who's interested. We e never done development.
Ta !
Other ideas??
we are increasingly frustrated on many levels with renting and feeling unsettled. So our discussion turns to 'is it time to bite the bullet and get a family home?'
We keep putting it off but 7 years on and a few kids later we are really unsettled.
There is only one home I'm interested in as a PPOR and it's complicated. It's 'over $900'. Land is 1700m2.. It has a 3br home, 20m frontage , prime land, on top of the hill. There are sweeping beautiful views from the whole block. I've loved the charm of the home for about ten yrs. it's old and land value only to any but aesthetes!
the challenge is how to fund (and hold) the purchase.
My crazy dream is to somehow buy it keeping 800m2 for now as family home. goal- Pay $450-500k for the half. Which is a very good price for that location.
Ideas so far on how to fund it:
- somehow get approved to borrow $900k and have all the subdivision arranged so on settlement a developer buys half off us. Then we have a non TD mortgage off pp of $450-500k.
- JV - purchase partnership- have an agreement in place whereby we agree to subdivide and each pay half ...
-In an ideal world we'd keep all the land and work with a dev who'd sell villas OTP to fund it and we'd keep one as IP. But
we don't see how it's profitable for us to hold the vacant land while all the approvals took place. The house is rented now for $400pw. A $900k purchase is a massive mortgage and if PPOR it would be non TD. Although in this scenario we'd rent it out til it became profitable to live there. Which then defeats the point of a family home. Plus - wd prefer to pay out the PPOR mortgage ASAP.
Any other ideas how to fund it??? We don't know anyone who's interested. We e never done development.
Ta !
Other ideas??