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  1. #1
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    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
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    bump

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    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
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    Thanks, we will be seeing the house on sat and then go from there (banks).

  5. #5
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    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)**

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    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
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    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
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    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
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    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)**


 

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