We are nearing retirement and our idea is to downsize our PPOR and sell one investment property to pay down some loans. I will go part time in 1-2 years. Hubby has about 3-4 years until he'll retire.
Selling the investment property will give us $20,000 a year in our pocket (less interest- taking into account lost rent etc as well).
I was hoping to clear $150,000+ when downsizing but after looking at houses we will only clear $100,000 so giving us $6,500 roughly in less interest. Our current house is also expensive to run (too big + pool etc).
So I'm thinking we will be about $50 a week better off in a smaller house.
So with the investment sold and down grade we will have extra income of $30,000.
Just wondering whether it's worth the hassle of the downgrade for $100,000? Also thinking the banks may want some of their money when we retire. Our LVR is 55% including our PPOR (but no personal loan on it).
Your thoughts are welcome.
Selling the investment property will give us $20,000 a year in our pocket (less interest- taking into account lost rent etc as well).
I was hoping to clear $150,000+ when downsizing but after looking at houses we will only clear $100,000 so giving us $6,500 roughly in less interest. Our current house is also expensive to run (too big + pool etc).
So I'm thinking we will be about $50 a week better off in a smaller house.
So with the investment sold and down grade we will have extra income of $30,000.
Just wondering whether it's worth the hassle of the downgrade for $100,000? Also thinking the banks may want some of their money when we retire. Our LVR is 55% including our PPOR (but no personal loan on it).
Your thoughts are welcome.