Hi Fishman,
My partner and I were in a similar situation as you and your partner though we were not going to realise as much capital, but selling our PPOR would release us from mortgage commitments of $30,000/year and unlock $250,000 equity.
We decided to sell as we could rent a similar place for half the amount of mortgage repayments, we did not want to have to service a larger loan if we just borrowed on the equity and we weren’t comfortable with having so much debt on our family home if we did unlock equity. Also we feel the market is soft at the moment and we weren’t expecting any more significant capital gains on our PPOR.
Our PPOR settled end of Feb, we have since bought 3 (soon to settle) positive cashflow properties, are renting a great house with great facilities and have so much more disposable income thet we can actually add $500/week to our invest account and not scrimp on lifestyle.
Just thought I’d share our experience.
Cheers [biggrin]