Browse Forums Home Finance 1 Jun 10, 2023 1:01 pm Hi All, New here, looking for some advice on what you would do in the following situation. Wife & I are looking to build the proverbial dream home, with everything that we want. Have located land (Wedge Road, Skye, Vic), and the house - Carlisle Grand Montpellier 46 with a few upgrades. Total cost expected to be $1.3 M. Land & stamp duty is $650 K, and the build will also be $650 K We own our PPOR (Value $820K, with a nominal $20 k mortgage), and have a few investment properties, and this is where it gets tricky. 1st has a loan of $490K, and rent of $2000 PCM, with a shortfall of $800. We intend to keep this longer term. The 2nd is underperforming, and we are planning on selling soon, A sale should put $50 K back into our pocket after sale costs, legals, and mortgage paid out. This would also save us $2000 per month based on the current shortfall Our loan serviceability would increase. This property has to be sold to allow any current loan amendments after the last few interest rate changes. A 3rd is under construction, which we have put $450K of our own cash into, and will have a small loan of $190K to have it completed. My thought pattern is to sell IP 2 & 3 in the next few months, and then sell the PPOR early 2024. This would provide us with 95% of the funds required to build the house, and I would expect that we save the balance of funds during the construction period, but also leave the option open to borrow $100 K from the bank as a just in case, and act as a buffer for anything else that comes up. If we did this, we would next to rent for a period of time, allowing maybe $25- $30 K. Any money left in the bank wold earn some interest, off setting the rental costs. Our mortgage broker is suggesting that we sell our PPOR & IP-2 first, and move into property No 3,(in an area that we don't really want to move to, but still reasonably close to our work locations) and put excess funds into the offset account, but this would also mean we need to borrow money to complete the new house build, then sell No 3 at the end, in approx 2 years. IF we sell the PPOR & IP 2 & 3 now, the money we get back is a constant value, as we don't know where prices will be in 12-24 months, or whether rates will increase much higher. I see this as a vested interest on our brokers behalf - write up another loan and earn money from it, rather than what could be best for us. Not sure if there is a right or wrong answer here, or what the best way to go about it would be. Thoughts? Thanks Steve R. Re: Pathway to new build : WWYD 2Jun 10, 2023 1:10 pm Surely the accountant you use would have been chosen for his/her expertise in this field. Have you asked your accountant for advice? 3in1 Supadiverta. Rainwater Harvesting Best Practice using siphonic drainage. Cleaner Neater Smarter Cheaper Supa Gutter Pumper. A low cost, siphonic, eaves gutter overflow solution. Make sure you use appropriate flexible isolation joint between external concrete and building slab/footings for movements. A 10mm Abelflex is ok. 1 13361 New house with bare driveways and perimeter pathways. They've just scraped the whole block and we have pretty much sand and hard clay soil. Until we save enough and get… 0 12810 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 7 70199 |