which one do U think should I buy ?

[blaster]

Hi guys
We have a new home choosing dilemma , what do you think ?

We own two IP's outright , only cheapies but on some new news yesterday they are looking v/good now . Where as only last week not so good because we do have some other debt worrying us and at the moment only renting ourselves.

So we've been hunting for a new house for ourselves and were looking for a cheapie being pretty worried about some debt and whether the Ip's would go ok.
But with the news and looking better we could go higher in price and get something better than what we thought we'd be able to manage only a wk ago.
Last week I spoke to the agent about a cheapie, 180ish, we found. It has nice reno and lifestyle potential but admittedly if we could spend more we'd choose a bit better but it'd turn out nice none the less.

Now with the IP's we could spend more and did have another one at 350k in mind just in case. Dream property, no compromises , everything we'd love no ifs or buts.
But the price is very much Dependant on the Ip's going according to plan because of the other debt we still have and the first Ip won't be finished for another 4 or 5 mths .
That would cover a huge deposit alone and that debt , but thats if all still went well.
So if I worked out a deal with the seller on this one , long settle or something along those lines , all would be well as long as ip went well.
But if something else happens or the economy takes bad turn or effects the first IP we'd be depending on it could get very messy.
But eh , she's a gorgeous property, but there is the gamble and stress element attached to it hinging on the ip .

Where as the cheapie , no worries none of it really matters . As I say it's nice , got some great potential but youknow !

Sorry to go on but I know you'd need the picture to help .
So what would you do, go safe and almost content , or grab the dream ? No can't wait any until Ip is finished , been renting 12 mths and been a rough few yrs , had enough . Anyway , they both might sell.

Cheers

 

[Jamie_D]

First you will need to do the numbers
Dreams can only be reached if you can afford it

Ask yourself what are your short/medium and long term plans?

Give me a yell if needed

 

[blaster]

Thanks Jamie.

Trouble is, the numbers would be great and very comfortably plus we'd still have the 2nd IP free and clear but when the first Ip is finished and sold .

Until then a fine line.

Cheers

 

[fatboy4]

Just a few points to clarify

#the other debt is personal debt?

#you are looking at either a cheaper ppor without selling an IP or

# at buying a better ppor with partly financed by the sale of an IP (which will be finished in 4 or 5 months.

If this is true-

clear up the personal debt
have as small a debt as possible on the ppor
have tax deductible debt on the IP/IPs

Additionally, given the stimulus to the bottom end of "the market" I wouldn't be tying your cheap IP to the ppor you would like buy because it is possible that the cheaper property(IP) will outperform (by that I mean have some capital growth) the dearer one across that period.


eg the IP goes up 10k and the other one down 5k in that 4 to 5 month period.

 

[csc]

unless they are sensational buys and the raw figures add up id honestly stay on the sidelines....

having said that ive just purchased two in two mths but they were super desperate sellers...and the prices were quite exceptional.

im staying out of further buys until late this year or in 2010..

theres going to be some real gems that popup.

good luck with your choices.

 

[blaster]

Just a few points to clarify

#the other debt is personal debt?

#you are looking at either a cheaper ppor without selling an IP or


# at buying a better ppor with partly financed by the sale of an IP (which will be finished in 4 or 5 months.

If this is true-

clear up the personal debt
have as small a debt as possible on the ppor
have tax deductible debt on the IP/IPs

Additionally, given the stimulus to the bottom end of "the market" I wouldn't be tying your cheap IP to the ppor you would like buy because it is possible that the cheaper property(IP) will outperform (by that I mean have some capital growth) the dearer one across that period.


eg the IP goes up 10k and the other one down 5k in that 4 to 5 month period.

Thanks FB .

Yeah bit of personal debt , couple of loans and a bit on a card , about 40k all up . Nothing really but as in separate payments right now it grinds away at incomes let me tell you especially trying to finish of Ip's
Will consolidate and pick rest off once reestablished and as we're looking rght would soon be out of the way so not worth the grief of doing much else with it for now!
I think your on the money with the cheapy demand in the future , pretty comfortable about seeing them through at this stage . one at $130k , gonna rent that one and hold , it's way CP so and one at $170k which will probably sell.
So there's plenty there to cover the 350 place , it's just not quite ready.

As Csc says I'd love to be sitting on the fence myself in anything else from here on to but unfortunately we need a new home/residence and can't wait any longer.

Cheers

 

[Bradsdad]

No hope in crunching the numbers so you can have your cake and eat it too?
Consolidating PLA's & C/C's would free up a bit that's for sure.



Regards
Steve

 

[blaster]

No hope in crunching the numbers so you can have your cake and eat it too?
Consolidating PLA's & C/C's would free up a bit that's for sure.



Regards
Steve

Thanks BD.

I reckon there is quite comfortably to be honest. It's also only 350k after all, quite cheap these days and the Ip's we own outright so .
But , as always comes down to a good broker and lender in the end I guess . It doesn't really sound like a big ask to me considering though so I've decided I'll give them a nudge and see what they've got to say .

Cheers