Opinions on direction.

Afternoon,

Quick rundown.

My partner and I recently bought a 3500sqm block to build our family home for $380,000. Similar blocks in the estate with houses are selling for 990k up to 1.3mil for decent sized homes. We have saved up 50k towards our build but have thought about selling our investment (which we just moved into) once we can minimise CGs on it. We have a mortgage of 330k but value in around 530k maybe more in current market. Although it would rent for $470pw.

Selling it allows us to build our family home sooner and unlock extra equity sooner. (380k + 450k build = 830k. Val min ~950k). We can save money on build due to access to machinery and I am also a tradie.

So do we put off the build to keep the IP or do we sell up, build, access cheap finance for build and unlock equity in preparation for next property cycle downturn to reinvest?

Confused which direction to take.

Thanks,
Andrew.
 
Have you considered just accessing equity on your ip via a new loan split? You might be able to have your cake and eat it too if servicing works.
 
Afternoon,

Quick rundown.

My partner and I recently bought a 3500sqm block to build our family home for $380,000. Similar blocks in the estate with houses are selling for 990k up to 1.3mil for decent sized homes. We have saved up 50k towards our build but have thought about selling our investment (which we just moved into) once we can minimise CGs on it. We have a mortgage of 330k but value in around 530k maybe more in current market. Although it would rent for $470pw.

Selling it allows us to build our family home sooner and unlock extra equity sooner. (380k + 450k build = 830k. Val min ~950k). We can save money on build due to access to machinery and I am also a tradie.

So do we put off the build to keep the IP or do we sell up, build, access cheap finance for build and unlock equity in preparation for next property cycle downturn to reinvest?

Confused which direction to take.

Thanks,
Andrew.

Start at the end and work backwards. What are your goals. What are you trying to achieve? Look 10years into the future and figure out EXACTALLY what you want and where you want to be.

As an example
Fully paid off PPOR, and living of rent of $50k/pa after tax. Then work backwards from there and figure out how to achieve it (there are a million ways to do it - you just need to find the way that you are comfortable with).

Only that plan will be able to tell you which direction to take now.

Blacky
 
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