Need a practical advice
Hi,
I just wanted some practical advice from more experienced investors.
The current situation:
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My wife and I own a four bedroom house on approximately 600 sqm block of land in a good location, close to shopping and transport, and not far from the city. After having done renovation we could get about $200,000 - $230,000 capital gain (no CGT). It’s a good equity but the thing is the house is expensive to maintain – the gas bills are enormous, we have to use the services of a cleaner, garden maintenance, insurance etc. It is also a big liability, we own to the bank about $260,000. The house is the only property we have, we have not bought any IP’s yet.
Possibility:
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I’m thinking of selling the house through auction and then buying a smaller place, maybe a 2/3 bedroom unit. Selling the house would pay out our existing loan and would pay for %50 to %70 of the new place (I would use a loan with redraw facility so that I can always access the cash). That way we would have a almost paid out property and be prepared for the possible property price decrease having enough equity to buy few ips.
So, is it worth doing or should we just keep the house and start buying IP’s? I am not looking for someone to tell me what to do but rather I’m expecting that more experienced person could point out things that I’ve missed, something I should consider etc. I would appreciate any advice.
Thanks in advance.
Hi,
I just wanted some practical advice from more experienced investors.
The current situation:
-------------------------------------------------------------------------------
My wife and I own a four bedroom house on approximately 600 sqm block of land in a good location, close to shopping and transport, and not far from the city. After having done renovation we could get about $200,000 - $230,000 capital gain (no CGT). It’s a good equity but the thing is the house is expensive to maintain – the gas bills are enormous, we have to use the services of a cleaner, garden maintenance, insurance etc. It is also a big liability, we own to the bank about $260,000. The house is the only property we have, we have not bought any IP’s yet.
Possibility:
-------------------------------------------------------------------------------
I’m thinking of selling the house through auction and then buying a smaller place, maybe a 2/3 bedroom unit. Selling the house would pay out our existing loan and would pay for %50 to %70 of the new place (I would use a loan with redraw facility so that I can always access the cash). That way we would have a almost paid out property and be prepared for the possible property price decrease having enough equity to buy few ips.
So, is it worth doing or should we just keep the house and start buying IP’s? I am not looking for someone to tell me what to do but rather I’m expecting that more experienced person could point out things that I’ve missed, something I should consider etc. I would appreciate any advice.
Thanks in advance.