Your Suggestion on my Situation Please.

[long88]

Hi all,

Just asking everyone opinion on what should i be doing, and the consequences of my action, on my current position now.

Here is some info on my current situation:

- PPOR (Noble Park, Walking distance to station 3 minutes), currently owing 7k, bought 260k 2 years ago, do about 20k reno, make a granny a nice granny flat at the back.
- Have just bought (suppose to be IP) Frankston South, but now sort of a little bit of unsure on what to do with current market.

i borrow 100%, and setup Offset account, have 200k fixed @8.25% for 5 years, and the rest is on variable (around @160k)

me and wife current salary about $1000/week, no dependent. age 30.

Recently, house close to my street sold for 354k, (i think mine is in better condition), so i expect mine should be able to fetch that now ?

Question that pops up/options that i am thinking of:

1. Sell current house, move to frankston, and will be buying from there again (look for another 250k house, and do some reno while live on it). keep the profit on the newly offset acc.
2. Keep paying the new IP, and build up some equity, until time permit, then go to buy another one.
3. Any other suggestion ?

one thing that i didn;t think/count is the cost of selling,buying, and moving.

i have been reading about people says that never sells. but it will be hard to just keep gathering the weekly money, while at the same time try to catch up with bank repayment (I seek financial freedom).

Any suggestion ?

Thank you for reading this.

 

[alexlee]

i have been reading about people says that never sells. but it will be hard to just keep gathering the weekly money, while at the same time try to catch up with bank repayment (I seek financial freedom).

There are a number of choices after you build up a chunk of equity: living off equity, using the equity to buy other assets (such as shares, managed funds, commercial, etc) during the building phase, or, when you do reach financial freedom, just sell enough to pay down some of the loans.
Alex

 

[toony]

The first question i would ask is - Do you want to live in Noble Park or Frankston?

If so, sell the PPOR in Noble Park and buy a new PPOR in Sth Frankston. You will then have 2 properties in Sth Frankston.

Me, i prefer Sth Frakston to Noble Park. So the choice would be easy for me.

 

[long88]

I like it being here (noble park), as i am asian, and i like to be 5 minutes down to asian market, asian food.

also 1 room is rent out ($75/week), planning to rent the granny flat out (possibly $120/week).

Do i sort of answer the question that i have asked everyone now ? (being to sell or not ?)

thx toony and alexlee for quick response.

toony, i think you are on the computer all the time. always see your response so quick.

 

[toony]

I think you have answered your own question. You like Noble Park. Stay there in your PPOR and invest in Frankston or Noble Park.

You could always upgrade your PPOR later by selling your PPOR and an investment property.