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  • Profile photo of eljayceeeljaycee
    Member
    @eljaycee
    Join Date: 2004
    Post Count: 6
    November 5, 2004 - 2:39 am

    Hi everyone,
    I’m very new at all this and hope I’m in the right area.

    My question is this:
    I currently live in Canberra and I am actively seeking work in either Townsville or Perth.
    I am in my own home and have about 70K in equity.
    However I am unsure whether to sell this house in Canberra and buy again in either city when or if I move or to rent this out and rent in the new city.
    I don’t think turning this one into an investment is an option as I don’t think I earn enough to cover it.

    Where do I go to ask someone this and to have it worked out for me. I am confused as to what would be best.
    Or should I not move?

    Any suggestions would be great.
    Thankyou!

    Profile photo of ShOw_Me_ThE_MoNeYShOw_Me_ThE_MoNeY
    Member
    @show_me_the_money
    Join Date: 2004
    Post Count: 80
    November 5, 2004 - 3:19 am

    Hi,
    U said if u rent this property u wont be able to cover your costs! is that current mortgage or the mortgage amount after borrowing some more off your equity?
    If the rent u get = mortgage payments, then rent it and buy a new home with your equity, else umm…… i’d say still do ur numbers properly as 70K of equity sounds great and this time is great for buying property…… I’d be lookin at renting this one and buying a new one for sure….. the market is just perfect!

    enjoy

    Profile photo of ShOw_Me_ThE_MoNeYShOw_Me_ThE_MoNeY
    Member
    @show_me_the_money
    Join Date: 2004
    Post Count: 80
    November 5, 2004 - 3:23 am

    Hey…. just realised that u also asked “Shall i Move?”…. this gives me the impression that u are prepared to stay back? Man! dont let ur property help u decide where to stay….. it work should be given most priority…. wwhat i mean is… if u getting job satisfaction and good money….. there’s where u wanna be…. so that u can pay off ur properties and build ur portfolio…. no matter where the properties are..

    enjoy

    Profile photo of eljayceeeljaycee
    Member
    @eljaycee
    Join Date: 2004
    Post Count: 6
    November 5, 2004 - 5:01 am

    Thanks for the reply.

    I have a secure job, but I guess I just have the urge to go to somewhere warmer. When I had orginally thought of doing this, my aim was to ease the monthly burden by selling this place, using the equity on a cheaper home to reduce the monthly payments. But of course since then my brain has been working over time and in the process getting my thoughts all mixed up.
    I would not move unless I had another job to go to and I am trying to move with work (public service) but if I can’t I am willing to stay put *sigh*.

    I bought the property for 185,000 2 years ago and had it valued 6mths ago at 240,000. Due to a marriage payout I now only a 160,000 mortgage.
    I am making 520.00 p/f payments which only leaves me about 500.00 p/f in my pay to pay for everything else. I don’t think a bank would touch me would they?
    A real estate agent told me that I could probably get about 230-245p/w rent for this place.

    However – if I did it the other way and bought somewhere in Townsville or Perth and rented it out then I would probably only get 160 p/w rent with a purchase price of about 180,000.

    I’m not a really ‘money’ type person, my ex did all that so I am learning while stumbling. I stuffed up already and had to re-finance the house – I had a equity home loan but found I was eating into my equity so bailed out after loosing 7K and went for the standard variable.

    Thanks for letting me ramble LOL

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