Hi all newbie here,
OKay so I own my home which was purchased in mar 2009 for mid $500k mortgagee sale so good price, that was paid outright so no mortgage now in a different place and considering upgrading to acreage.
At present we have a $100k line of credit against home with value of mid to high $800k maybe more (waiting for estate agent to do valuations) houses we are looking at are in the $950k and we thought we would borrow our combined income would be $65k and may need to borrow $250k. This is only the second house we have purchased so not sure abut all the lingo, so please forgive me.
So questions are chances of borrowing that amount on that income? (3 dependents our ages are 30/32) In your opinions would it be a smart thing to do or would you stay and wait? I am undertaking a uni degree from next year so income will rise to $120+ after that, just a big mess and because house is in my name only (paid for from my funds) hubby is a bit like its you choice.
I just don’t want to go from owning a lot of a house to not as the debt bit scares me but this whole moves is about more of a lifestyle change so it is going from one house back from waterfront and everything you need to space and peace and a rural setting arrgghhhh is an understatement.
Thanks in advance.
Hi didi1981,
Firstly, you ought to be congratulated for acquiring a "practically" debt free house. $100K loan against an $800K asset is marvelous, someone so young, too.
Consider me your Agony Aunt, my advice will have nothing to do with finance but with life's practicalities. You can say I've been there and done that. I have four kids, one young adult, two teenagers and a tweener. Three sons and a "terrorist." You have three kids, wow, I can really relate.
You will be going back to Uni next year, I assume hubby works full-time. Your hands are full. Your life is busy in more ways than one. Changing address CAN cause much upheaval and you may find yourself at a "tipping point.".
You are young, there is no need to hurry. Unless your current house is a shoe box and may in fact cause one of you to become homicidal, stay put for now. Wait till you finish Uni, get your new employment and then move. If you could buy another property without selling this present home, then you're on your way towards becoming a property investor.
This is my experience talking – it would be foolish to suggest it could become yours. But conventional wisdom dictates that too much upheaval at any one time is best avoided.
Regardless, enjoy the family and each lovely moment it brings.
Take care.
Angelina
You know…. this year is not the only year left in your lifetime that you will be able to move residence and/or invest. I agree with Angelina. Sometimes you need to ponder whether you really want to add extra stress onto yourself. An upgraded house or an extra investment property will be of no use to you if you kill yourself from stress. Also remember that financial pressures are big contributors to marital stress. Perhaps this year is not the time to do it.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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