Hi guys,
My situation
Age:28
Income: 130k-160k (fluctuates) + girlfriend is paying me about $200 per week in rent and she earns about 50-60k.
Assets:
Live in a 2 year old townhouse in a nice, respectable suburb, close to the City in an exclusive development. Its valued at 470k. I currently owe 300k, therefore have about 170k of equity that's currently doing nothing.
I don't think its very achievable to eliminate a 300k loan overnight. I am surrendering to the fact that its like p155ing into the wind and that I better come up with some other kind of plan, otherwise it will be me and my big 300k mortgage when I'm 40.
I know inflation will start to make things easier over time, but still, I feel that's a long way off and you can't just rely on "things getting easier".
I got most of this equity because I bought my first house when I was 20 for 148k, just prior to the big boom, and I sold it a few years later for ~300k. So I was lucky like anyone who bought before the big boom. But since then, nothing much has changed and I am picturing myself working my *** off just to sustain this income, just to be able to service the mortgage, but there's nothing really in place for the future. The mortgage is going to tie me to having to keep bringing in the same income - but I don't want to be in this type of job forever.
However, living here is really nice and the lifestyle is great.
Am I being a narrow-minded Aussie blindly chasing the home-ownership dream by just having my big mortgage and working a stressful job to pay for it, with no other investment behind me from the equity?
Should I do something with the 170k equity, because lately I am really seeing some nice price drops around the place (my girlfriend works in real estate, so I am hearing the stories first hand).
This place can pull about $500 per week in rent. Financially am I better off renting this place out, moving out, and buying a cheap PPOR for me to live in and use this place as the investment? That sounds like it would kill my lifestyle, but at the same time, I don't want to be tied to p155ing into the wind forever, so am definitely prepared to make a sacrifice for the longer term good. Is there anyway I can remain living in this place, but use the equity for an IP somewhere else that's beneficial financially?
Any advice appreciated - WHAT WOULD YOU DO???
Thanks heaps for your time.
My situation
Age:28
Income: 130k-160k (fluctuates) + girlfriend is paying me about $200 per week in rent and she earns about 50-60k.
Assets:
Live in a 2 year old townhouse in a nice, respectable suburb, close to the City in an exclusive development. Its valued at 470k. I currently owe 300k, therefore have about 170k of equity that's currently doing nothing.
I don't think its very achievable to eliminate a 300k loan overnight. I am surrendering to the fact that its like p155ing into the wind and that I better come up with some other kind of plan, otherwise it will be me and my big 300k mortgage when I'm 40.
I know inflation will start to make things easier over time, but still, I feel that's a long way off and you can't just rely on "things getting easier".
I got most of this equity because I bought my first house when I was 20 for 148k, just prior to the big boom, and I sold it a few years later for ~300k. So I was lucky like anyone who bought before the big boom. But since then, nothing much has changed and I am picturing myself working my *** off just to sustain this income, just to be able to service the mortgage, but there's nothing really in place for the future. The mortgage is going to tie me to having to keep bringing in the same income - but I don't want to be in this type of job forever.
However, living here is really nice and the lifestyle is great.
Am I being a narrow-minded Aussie blindly chasing the home-ownership dream by just having my big mortgage and working a stressful job to pay for it, with no other investment behind me from the equity?
Should I do something with the 170k equity, because lately I am really seeing some nice price drops around the place (my girlfriend works in real estate, so I am hearing the stories first hand).
This place can pull about $500 per week in rent. Financially am I better off renting this place out, moving out, and buying a cheap PPOR for me to live in and use this place as the investment? That sounds like it would kill my lifestyle, but at the same time, I don't want to be tied to p155ing into the wind forever, so am definitely prepared to make a sacrifice for the longer term good. Is there anyway I can remain living in this place, but use the equity for an IP somewhere else that's beneficial financially?
Any advice appreciated - WHAT WOULD YOU DO???
Thanks heaps for your time.