Browse Forums Real Estate 1 Feb 03, 2013 1:51 pm Hi guys, New to this forum, I hoping to get some advice ! We live in a southern suburb of Adelaide, built here 2 years ago, turns out we have a made a mistake the house is tiny as is the yard and the suburb is decreasing in value, We were pressured by the sales consultant to buy off the plan , " the are is going to boom in the area" and house and land packages are going to run out if you don't get in now " We were naive I guess at the time and had the deposit so just did it, now we are wanting to buy a bigger house with a big backyard as we have one daughter and are hoping to expand soon, We also have a personal loan of $25k that we just can't budge, My question is , we pay $1100 per fortnight on mortgage with about $1600 a month in interest , and then the personal loan , We had a appraisal and should be able to sell the house and pay off the personal loan , and rent for say two years , I made a budget and we could save $80k for a house deposit , meaning we could by the house we want in a better area ( providing the market doesn't sky rocket in the next two years) And have no personal debt, Or keep our house and try and pay off the personal debt and hope the market picks up to sell and by bigger in a few years time, I just don't want to take a step back or not be able to get back into the market , but don't want to be stuck we we are for ever ? What do you think we should do? Any advice would be fantastic ! And thank you in advance Re: Sell up,to save for bigger house? 2Feb 03, 2013 6:45 pm I would go option 2 if you think there will be a good amount of equity and you can still pay off the personal loan and as much off the mortgage as you can afford. It gives you leverage with the bank, you could possibly earn income by renting it out once you move (if you're that way inclined) and gives time for the market to pick up again. However, we went for option 1 sort of but we were lucky the market had just started picking up again. We bought our house naively thinking we could renovate it or at some point detonate and build. 2 years on and we realised there was no way that was going to happen anytime soon. We want to start a family soon and don't want a bigger mortgage. Our suburb got hit by the gfc but luckily when it came time that we thought we wanted to buy land and build the market started to pick up. We sold our house with enough money for deposits on the land and construction. We are just in the final stages of pre construction now. We didn't bother paying off the personal loan as the bank wanted us to have the deposit more than getting rid of the debt. I guess what I'm saying is i would wait it out and see what the market does but in the meantime pay off as much debt as i could and possibly then save the money I was paying in to the personal loan for a deposit. Re: Sell up,to save for bigger house? 3Feb 03, 2013 8:48 pm Also consider the option of renting out the current property and renting elsewhere. For us it was better off for us to rent out the property I owende and rent elsewhere rather then to stay living int it. Look at all your options. If you know where you want to build look at keeping and renting, selling or staying where you are. There are many options so look at what will be best for you! Re: Sell up,to save for bigger house? 4Feb 04, 2013 6:34 am Yes I would investigate renting it out also. Check how much rent you'd get and also there would be great depreciation being a new property. Also you can take advantage of the 6 year rule and not have to pay capital gains tax when you sell. You would also be best to pay interest only on the loan and put the extra money in an offset account. You never know things may pick up and you may want to keep it as an investment property. Best to have all scenarios covered. Are prices likely to go up in your area (or are they still building off the plan?). Re: Sell up,to save for bigger house? 5Feb 04, 2013 8:35 pm Thanks for the advice , it's hard to say lots of new developments where I am, hard to say if it will add value or not in the future. Will def look into keeping the house as a investment property , and try and pay the personal debt in the meantime. Re: Sell up,to save for bigger house? 6Feb 28, 2013 3:41 pm Be careful going into the Rental situation, we have moved twice in two years due to the rental being sold, we have 6 months to go on our build and have to find another rental! I've just had a look at the website. The company are just building broker's. There are plenty of similar companies that basically draw your plans (they own them so you… 8 11875 Use a product like Equisol's Vitalise to clean the deck then coat with a penetrating timber oil. It will look 10 years younger and add value to your home. Visit for… 1 16675 Good on you for having a go I am the opposite of DIY (so will pay a builder) - our vibe is industrial/simple so current thinking is 150mm concrete and then internally is… 3 3162 |