i live in the newcastle area and have recently purchased the property next door privately from an elderly neighbourwho wanted to move to a retirement village.
i paid $250k for the place but it could sell for close to $300k.
my first thoughts were to rent it out for 5 years and then knock down the both houses and build our “dream home” on a double block (we love the area and don’t plan on moving.
i can rent the property for about $230 a week which on an 80% p&i loan puts me about $90 a week behind.
selling for $295k would give me about $90k for further investing, but renting gives me the “dream home” scenario and i can still refinance to get about $30 – $40k to invest
i am interested in more experienced opinions before i decide on the best path for my future.thanks all
btw – very good info available through these forumsHi,
Thanks for your post… I just moved it to the correct forum.
Ah, you have the same issue as many others.
It comes down to distinguishing between an investing decision (buy more property) and a lifestyle decision (dreamhouse).
Furthermore, outside of making money it’s likely that you have not set a goal or reason to invest.
This being the case, if you sold (or refinanced the equity) in the property and invested elsewhere, what would you buy? I think it’s important to work through this question in order to understand the risk:reward before you.
You’ll need to prioritise in your own mind which you want more… the dream house or the possibilty of building wealth via investing.
Personally, I choose the investing option and delayed gratification so that I could have the dream house and not have to work later.
As for the numbers, your property will be -vely geared, so while the property appreciates in value above the cost of holding it you’ll be infront.
When the market moves sideways or down you’ll be behind. As such, in deciding to sell or keep the property you need to form an opinion about where the market is and what it is likely to do, and then act accordingly.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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] thanks steve
i appreciate the feedbackdean
] thanks steveThe topic ‘newbie – would like opinions before deciding’ is closed to new replies.
