Advice needed!!!
I was hoping to get a point in the right direction, I guess I need to start from the top. My wife and I are currently selling our recently finished second (and only property) and have come across a few hurdles. We are both from fairly rural areas (approximately 1 hour north west of melb) and would love to raise our family on land in the area. Our original intentions were to build and sell properties in the macedon ranges area until we could afford to pay cash for a sizeable piece of land and then start buying properties to rent. We have two issues that we need to sort out. I run my own Landscaping business and it is doing quite well, but to get a loan we need to have an abn for two years which will be about april 2010. We have found "the dream property" and is within our reach but we would have a mortgage of more than we want and I am worried this will affect any future plans for investment.
To break it down, after the sale of our current place we will have about 70k. The property we want will cost about 290k and we want to keep our current loan (no other choice) of approx 220k. The property needs some superficial tlc but I am confident (looking at other places of similar size in the area) that with approximately 20k in improvements it would be worth around the 400k mark. If this scenario was to pan out and we had around 150k in equity, can we do something with this in terms of buying rentals?
Other option (maybe) would be to buy a block down the road (2000sqms) and subdivide, building on 1, selling and then building on the other and selling. Assuming we get our price for our current residence on paper we will have around 150-200k in about 2 years. It would mean looking for a less than diserable loan to get us through and lots of moving which I am over (I have 3 kids and its getting too hard)
I guess I am realy looking for a way to make option 1 work, as it is better for the family but I dont want to risk the dream of being financially independant through investments
This is a bit of a novel but what are my options? What other suggestions? any help would be much appreciated.
Sorry luvmud
Appears to be a lot of soft data missing to provide a decent recommendation.
Richard Taylor | Australia's leading private lender
what other info can I provide?
Simplified Assets & Liabilities statement together with an income & expenditure break up would help.
Richard Taylor | Australia's leading private lender
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