My wife and I are planning on buying land soon and building our dream house. We are nearing the point where this is feasible, so we are obviously quite excited, but I'm wondering if I should cool my jets and wait a few months, or if I can proceed right now.
- Own an investment property. We will need to sell this to afford our new house. Value around $500k, owe around $310k. Lease ends in April and we are looking to sell vacant in May/June. So around ~190k of equity (minus selling costs). It's our only property so still considered out PPOR for tax purposes.
- $30k cash in the bank.
- Renting the house we live in.
So the straightforward thing to do is wait for the house to sell/settle during the year, and then buy a block of land. The issue is that the town I live in has pretty limited land releases, so I'd be keen to jump onto something suitable asap. I'm thinking of putting a deposit (5-10%) on a block of land now. If the land titles before we sell our IP, I can restructure the loan to access the equity. If not, even easier.
What do you guys think?