We have read hours and hours of material within the forums and thank everyone for their comments. Great support and knowledge.
We are expecting our first child in July and Yes we agree with what other members have said about your re-direction in motivation when you have kids.
Our goal is to generate a passive income for my wife so that she does not have to go back to work full time.
Our current situation is a combined income of $90k (down to $50k in July). We will struggle to keep making mortgage repayments unless we both remain working fulltime. We are at out limit for lending capacity based on our ability to service the debt. If we sell our house we will have approx $140k net left over (agents fees, legals, bank fees etc taken out).
Our dilemma is that we are wanting to make a start towards investing in +cash flow properties and are leaning towards selling our house, investing a % into +cashflow properties and renting, rather than selling and buying a property and still having a relatively high mortgage. Rent would be our only liability. We would appreciate any comments.
Hi Damien,
Welcome to the forum!
I have recently done what you are talking about. Sold our home (in November) and using the money to buy +ve cashflow property. It is working very well for us, and we are building our portfolio quite quickly now.
It is a very personal thing for each person though. I would not like to suggest to you to sell your home, especially if you are expecting your first child in July. I don’t know you, and I don’t know your goals in life. This is something that you both need to consider very carefully. It is a lifestyle choice, over an investing choice. A bit like comparing apples to oranges.
Once you rent, and spend all that equity, it may be a little while before you can afford to buy again.
Prices are beginning to slow. I personally believe that there will be some great bargains coming along perhaps at the end of this year. At the moment though, I would not be buying my first cashflow property and risking my home to do it.
Good luck with the big decision, and the impending parenthood
] Let us know what you both decide.Regards,
Del
Hi Del
Thank you for the reply, it is certainly appreciated.
Yes it is a big decision and one that we have gone backwards and forwards over many times recently. I suppose the good thing is that our current house, while lovely is not THE house for us. We do have very specific long term goals and are not concerned with renting for a period.
Hi Del
Thank you for the reply, it is certainly appreciated.
Yes it is a big decision and one that we have gone backwards and forwards over many times recently. I suppose the good thing is that our current house, while lovely is not THE house for us. We do have very specific long term goals and are not concerned with renting for a period.
wilandel,
That’s some downsize- selling one’s own PPOR and buying up CF+ houses! Are you now renting? That is a drastic move in property! Would the new home you now live in- if you now have a PPOR- be comparable to the PPOR you sold?
kay henry
Hi Kay,
NO WAY !!![
]We had finally found our dream horse property on 20 acres. It had great fencing, stables etc.. The house was just right, with great entertaining area. We had only lived there 11 months.
We have gone to no dishwasher (after having one for at least the last 5 yrs), no ensuite – (dito) 30sq home to approx 13 sq home. We had to ditch half our furniture. I now have no office, and this is tricky at times, as we run a large farming business. We are now renting on 25 acres, but the fencing is old barbed wire, and we are replacing it ourselves – expensive…. We must be dream tenants, but one of our horses recently got caught up in the wire and almost died. It’s times like that, that you have second thoughts…[
]It will all be worth it in the end – we are sure!![:o)]
At least we are not using a line of credit any more. The bank was getting all of our profits. Now it is coming back to us!!
We did this because we were selected onto Steve’s MAP program. It was something that doesn’t come around every day. We had to seize the opportunity!!
We have no regrets selling our home, although at times, we miss our old home! Everything we had was lifestyle stuff. We are not snobs, and so don’t mind sacrificing them, if it means we can achieve a less stressful working life in the long run. If we lose everything tomorrow, we will simply start again. We still have our health, and our love for eachother & kids. This is what is important to us. Bricks & sticks are simply bricks & sticks….
Regards,
Del
Deal,
Thanks for sharing :o) Actually, it sounds like a really sad story. You had everything- a home you loved, and a lifestyle. Isn’t it all about enjoying the life we have now? What about if, by the time you get all these CF+ houses, you are too old to enjoy it? What if you can never afford to buy your dream home again?
It sounds as if you were living the dream before. I hope one day you’ll be able to live it again, Del
kay henry
Thanks Kay,
It certainly makes life interesting!!
You are never too old to have fun!! [^] I hope!!
Del
delayed gratification isn’t it, we are doing the same, all with the goal of enjoying life to it’s fullest (with no worries of working to make a dollar).
the investments can work for us
] Let us know what you both decide.
]
]
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