Hi, We bought our PPR for top dollar ($285k) in 2004 (dont ask me why thats another story), anyway now our family has expanded and our little 3BR has become too small to meet our needs. To sell now we would lose approx $35k just on sale price plus expenses and then wouldnt quite meet the repayments to upgrade to a larger home for the same price on our reduced income and with rising rates. To just sell and go back to the rental market seems like a backward step, not to mention the money lost, but we really couldnt hang out here for another 12 months. I have considered putting it on the rental market and it would be negatively geared while we rent a larger home. We currently owe $195k on the PPR and I feel if we can hang on for another couple of years we would be OK and can leverage some of the equity for our PI goals. Does any of you experienced property people have any advise to point me in the right direction? Our Accountant says if we wanted to , we would be OK if we managed our budget. But we are just scared and need more perspective since we have more responsibilities with children now.
Welcome to the forum lissteve. I wonder…..would you consider renting for a couple of years if it saved you losing that 35k and gave you a few tax deductions? Maybe renting will allow you to take a breather so to speak while you plan a few things. Your rates and loan interest will be tax deductable then on your previous home, you won't lose that money by selling for less, and with little ones and renting you will find there mnay be some legit centrlink benefits to take the pain away – for example rent assistance. Don't rush into anything. All the best.
iv just bought my fist investment property. not sure if i got the right loan or not! so i got anz inv money saver loan. was recomended to me
Hi guys, we were in an identical situation some time ago, kids change your world (for the better)
So,
Owe $195,000
@ 7.5% Interest only loan
Repayments would be $271 per week.
(Fixed loan)
What kind of rent would your place attract? Could you live with a short fall for a while?
Sell as a last resort would be my unsolicitored advice. V8ghia is a wise soul (love your posts dude) and that could be your better option depending on your income. Good luckthanks guys, I appreciate your taking the time to respond. I had thought of refinancing for the remaining balance, but was concerned I'd lose access to the surplus we had created as I was thinking we could use it if we were untenanted for a while. Our current lender doesnt require any payments while we are in so much surplus. (though we are paying as much as we can right now).
Hi Lissteve,
Now I dont mean to sound trite or anything and I certainly do not know of your personal situation but have you considered hiring a storage shed for a while. Recently friends found themselves "outgrowing" their home and packed up alot of "stuff and put it into storage. Yes it is a bit inconvenitent but some "stuff" you dont need all year round. It has relieved their urgency to move house for a while. I agree, it is only a bandaid but it could be another option.
All the best
TammyDid you consider extension of the house?
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