Hi,
I just wanted to get the opinion of some people on the forum. I hope I'm posting in the right area.
We currently own a townhouse, owe about $240,000, would probably sell for around $450,000.
We definitely want to buy a new house early next year, but are also at the stage in our lives where we want to start investing.
We have thought of 3 options:
The next house we buy will be the one we live in for the next 15-20 years, so we want to make sure it's the 'best' house we can buy. In order to spend more on our next house I'm thinking it would be better to have the most deposit we can in order to lower the repayments we will have in the house we move in to. In this sense, option 3 would be 'best', however it would mean putting off investing and my fear is that we may not be able to invest for a long time in the future if we take this option.
However I also think this would be a good opportunity to turn our current house into an investment property because the rent we get from the property would cover the mortgage repayments. If we take this option though our repayments on the house we move into would be more.
As I said, I'm hoping for some tips/advice/info from some other forum members.
I just wanted to get the opinion of some people on the forum. I hope I'm posting in the right area.
We currently own a townhouse, owe about $240,000, would probably sell for around $450,000.
We definitely want to buy a new house early next year, but are also at the stage in our lives where we want to start investing.
We have thought of 3 options:
- Keep current house, using equity that we have as a deposit for new house. I think we would have around $150-$160,000 to use for next house
- Keep current house, but my wife would sell her 'half' of the house to me. Without going into too much detail, advice provided to us by a property accountant has told us that doing this will mean we will be better off than just using the equity as per option 1 for tax purposes but would only have around $110-$120,000 to use for next house
- Sell the house and use the money from the sale to buy a new house. We would have around $200,000 to use for next house.
The next house we buy will be the one we live in for the next 15-20 years, so we want to make sure it's the 'best' house we can buy. In order to spend more on our next house I'm thinking it would be better to have the most deposit we can in order to lower the repayments we will have in the house we move in to. In this sense, option 3 would be 'best', however it would mean putting off investing and my fear is that we may not be able to invest for a long time in the future if we take this option.
However I also think this would be a good opportunity to turn our current house into an investment property because the rent we get from the property would cover the mortgage repayments. If we take this option though our repayments on the house we move into would be more.
As I said, I'm hoping for some tips/advice/info from some other forum members.