What would you do in our situation?

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Bonnie
Participant
@bonnie
Join Date: 2004
Post Count: 69
April 6, 2005 - 12:05 am
A bit of advise needed please –
We have a block of land that won’t have titles due until at least September this year and therefore won’t have to pay for it until then. We then have a further 18 months in which to build our house.
We have sold our PPOR and are currently renting it back from the new owners for at least a year (and hopefully until we build our new house on the above block).
In the mean time, since we are paying out a relatively low rent (compared to what a mortgage would be), what do you all suggest we do to make a bit of extra cash to put into our new home? Whatever we choose to do will be a quick buy and sell, so should we –
buy, renovate and sell?
buy another block of land and sell in a year’s time?
buy another block of land, build and sell (and hope that we can do that in under 18 months so that it’s in good time for us to build our new PPOR?
Any other suggestions? or should we do nothing and try and pour as much money into a savings account between now and when we build our new PPOR?
Any suggestions will be greatly appreciated?
diclem
Member
@diclem
Join Date: 2003
Post Count: 537
April 6, 2005 - 1:50 am
Hi Bonnie,
Have you had your plans drawn up yet for the new place, or are you going with a “project” home?
If the plans aren’t drawn up, I’d start the process rolling so you may be able to build soon after settlement and get into your new place sooner. i.e. less time paying rent.
Whatever you choose to do, make sure you keep the difference between your rent and old mortgage payment aside.
I’m sure you’ll get some more helpful responses than mine,
Good luck,
Sue [biggrin]
“Be careful not to step on the flowers when you’re reaching for the stars”
Bonnie
Participant
@bonnie
Join Date: 2004
Post Count: 69
April 6, 2005 - 3:02 am
Hi Sue,
Thanks for your reply. Yes we have had the plans drawn up already so that as soon as we get a plan number we can get the ball rolling, however if it’s in our better interest to hold off building the house in order to do another little money spinner along the way then we’re happy to do that.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 6, 2005 - 3:19 am
Just be careful that you don’t get your funds tied up for too long. Things don’t always go to plan and often go over time.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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