I would really value your thoughts with the following:
I live 20kms from Melbourne city and should I sell my 4 bedroom home that is 5 years old, I would have in my pocket, $500k, after paying off the mortgage and all relevant expenses.
I would then rent.
With the cash, I would like to buy older properties to renovate and sell. We would start small, on properties that do not require structural renos and my husband although not technically qualified, is extremely handy. He has installed several bathrooms, kitchens and built a decks.
This would become a full time job for my husband so we can turn the houses around quickly.
Idea would be to finally make enough money to buy an owner occupied home, with cash.
We can't afford to make the repayments on the loan from the equity of our current home.
Is this feasible or am I crazy?
Never done it myself so im only passing on what i have picked up in conversations and forums. You would have to be very carefull and do complete feasability studies. You may turn a large supply of cash into a small one if not carefull. Many variables like rates,sale prices and timeframes may affect your end profit. That being said it is possible and people do it. Just crunch your numbers well before hand.
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