+ Reply to Thread
Results 1 to 9 of 9
  1. #1
    Join Date
    Mar 2007
    Location
    Melbourne
    Posts
    8,162
    Thanks
    752
    Thanked
    765
    Reviews
    5
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts

    Default Sell now and rent? Advice pls.

    Hi all, I live approx 20 min away from my parents and Dh's parents (they are 10min away from each other) and my parents are sick at the moment. My dad has pancreatic cancer and is palliative care, so he wont get better and my mum has bowel cancer. My mum was lucky to have caught hers early, so with some chemo she should be cancer free.
    I want to live closer to my parents so that it is easier to pop around and see how they are, bring the kids around etc. Also I love the area (it is where I grew up) and I want to send DS to the same school I went too.


    Here is my dilema. I am a SAHM at the moment (returning next year to work) and DH works for himself (just started off, so his annual salary is quite low once you work out last financial years expenses / losses etc).

    If we sell out house, we would make around $170,000- $200,000, but would still need to borrow another $160,000 to buy another house in the area we like. (That would bring our mortgage up as we still owe around $200,000 on our current house). So I think the banks will say 'see you later'!

    I am thinking of selling our house and renting in the area we like and then once I am back at work and DH has worked for himself a bit longer, the banks will then lend us the extra money. The rent in that area is less than our repayements, so we would be ok with that, even have a tad over to save.

    Is that a bad idea, to sell and rent for 1-2 yrs and then use the money we made selling our home as a deposit later on?

    Also if we do sell our home, and made $170,000- $2000,000 what sort of interest would we make on that money?

    Thanks for reading.
    Last edited by 2BlueBirds; 27-02-2012 at 09:00.

  2. #2
    Join Date
    Mar 2007
    Location
    Melbourne
    Posts
    8,162
    Thanks
    752
    Thanked
    765
    Reviews
    5
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    bump

  3. #3
    Join Date
    Jul 2010
    Posts
    10,315
    Thanks
    3,126
    Thanked
    6,319
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    Check with the banks, you would be borrowing less than 50% so as long as you can afford the repayments you will be fine - not sure on the current interest rate for investing cash but don't forget you will be taxed on the interest!

  4. #4
    Join Date
    Mar 2007
    Location
    Melbourne
    Posts
    8,162
    Thanks
    752
    Thanked
    765
    Reviews
    5
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Thanks, we will be seeing the house on sat and then go from there (banks).

  5. #5
    Join Date
    May 2008
    Location
    Where the wild things are
    Posts
    7,022
    Thanks
    106
    Thanked
    686
    Reviews
    15
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    You could also keep the house and rent it out til you are ready to sell

    But I would move now if it is what you want xx

    Sorry to hear about your parents **hugs**

    **Mum, Dad, Big boy (Dec 08) and Baby girl (Feb 11)**

  6. #6
    Join Date
    Jan 2006
    Posts
    395
    Thanks
    61
    Thanked
    253
    Reviews
    0
    I commend you for wanting to move closer to your parents. Spend as much time with your Dad as you can.

    I noticed you said that if you were to rent it would be less than your repayments. You need to also take into account how much rent you would receive from your tenants. If they would cover the mortgage or at least be paying more than your proposed rent, it could be great. I would only rent out my home if the rent you receive is higher than any rent you pay (or else you are going backwards). Also if your rent is lower than your current mortgage payments, pay that extra bit straight to your Mortgage you would have been paying if you were still in your home (eg mortgage $400pw, your rent $350pw - put the extra $50 you would have been paying on your mortgage) IYKWIM. That way you will still be getting in front.

    As long as the rental numbers stack up, I would rent. That way you are not desperate to sell to move and maybe have to take a lower offer than you would have liked. It would give you more time to consider your options and still be close to your parents to spend time and offer them support.

    Good luck to you and your family.

  7. #7
    Join Date
    Mar 2007
    Location
    Melbourne
    Posts
    8,162
    Thanks
    752
    Thanked
    765
    Reviews
    5
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Thanks all, I spoke to the real estate agent and the house we like is still for sale,but it is being rented out until jan 2013.That is good as it means we would have time to sell our house first, but we wouldnt be able to move in until then (meaning if we sell earlier we would have to rent elsewhere until the tenants move out). So we need to see the house, then the bank (that part I am worried about).

  8. #8
    Join Date
    Mar 2008
    Location
    The 'Gong, NSW
    Posts
    2,624
    Thanks
    1,671
    Thanked
    374
    Reviews
    2
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Maybe you should speak to a mortgage broker to find out their advice. They may be able to conditionally approve you, or at least offer some idea of the best way to go about the situation

  9. #9
    Join Date
    May 2008
    Location
    Where the wild things are
    Posts
    7,022
    Thanks
    106
    Thanked
    686
    Reviews
    15
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    If you want that property, you could offer the tenants some money to move out earlier, generally moving costs is sufficient. If they know they have to move within the year they may accept.

    **Mum, Dad, Big boy (Dec 08) and Baby girl (Feb 11)**


 

Similar Threads

  1. How much do you pay in rent?
    By aquarius22 in forum Single Parents
    Replies: 15
    Last Post: 17-07-2012, 08:42
  2. To keep or to sell? Advice please!!
    By CluckySC in forum General Chat
    Replies: 9
    Last Post: 31-03-2012, 18:50

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Babybee Prams
Save $50 in our pre-Christmas sale! All Comet's now only $500. Our bassinet & stroller set includes free shipping AUS wide, $75 free accessories, 18-months warranty & a 9 month free return policy. Check out our new designer range today!
sales & new stuffsee all
CarmelsBeautySecrets
Growing your own natural nails is easy. Years ago, I devised a simple and very effective technique which really helps boosts the nails' growth in as little as three days! And most importantly keeps them that way.
featured supporter
GymbaROO
GymbaROO offers activities for babies & toddlers in a fun learning centre, focussing on developmental education. Classes are available Australia-wide. Enrol today & help your child to reach their full potential. Visit the website to find out more.
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!