to renovate or to sell

Couple of questions spring to mind. What is the home worth? If you sold it what would you be left with after paying out the loan? Have your circumstances changed that you now can’t afford that loan?

I am not sure what duplexing it actually means, but I assume it means you somehow split the house in two and rent half, or both sides. If that is right, could you rent out to two lots of tenants and maybe rent somewhere much, much cheaper for a while to catch up or at least hope the market picks up.

You say you want to keep it and cannot meet the payments so before making any decision you need to investigate all angles.

If you just cannot meet the repayments whether you duplex it or rent it, I suppose selling has to be investigated, but don’t forget the costs involved in paying agent fees will be high on that value of house and buying again incurs even more costs.

I am sorry to hear your predicament, but think you should seek some advice from a broker, or financial adviser. I cannot even get my head around having a PPOR debt of $1M but only you know your particular circumstances, so don’t rush into anything.

Good luck, Wylie.