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  1. #1
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    Default Need some real estate/financial advice! Pls

    Ok here is the low down


    We have a town-house at Capalapa.Repayments are reasonable at $320 (good down payment meant a loan in the high 100 thousands) but pay extra on that to keep ahead and so on.


    The problem is the TH is not really big enough for all of us to live in (especially since we want to add to the family) We are trying to work out what to do. DP thinks it wont sell because of the market and that he should hold on to it because the area will boom.


    Is it a bad time to sell? Obviously if we sell and buy in the same market it really makes no difference??? he may not budge on wanting to hold on to it for a while longer so is it a ridiculous idea to rent it out and then rent something else for ourselves that is more suitable? I mean obviously the rent incoming and outgoing would need to be the same so that it cancels each other out, know what I mean? Or is that just financially stupid?


    I'm not really sure that we could afford to keep it and rent it out and get a whole other loan but I'm thinking that would be the ideal situation. Buying while the market is down and then sell the TH when the market starts creeping up again???


    Ok so it's clear I really don't know much about this stuff but I'm so over this situation and desperate to resolve it, like.... yesterday!!!

    TIA

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    How about, use your equity in that property as a deposit to purchase an investment property - where the rent on the new property will be considered to service the loan.

    Then, once the rental term on the new property is complete, evict the tenants and move into it yourself, renting out your townhouse.

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    Default Need some real estate/financial advice! Pls

    Compare the rent you'd get for your existing property to the amount of your repayments. If it's about the same it might be worth considering using it as an investment property and either renting or buying something bigger.

    It's definitely worth getting some decent financial advice though - there are so many swings and roundabouts and possible consequences that it really is worth spending a few hundred dollars to sit down with an expert and nut out the implications of all options and help you decide what your end goal is.

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    Default Need some real estate/financial advice! Pls

    Quote Originally Posted by sweetseven View Post
    How about, use your equity in that property as a deposit to purchase an investment property - where the rent on the new property will be considered to service the loan.

    Then, once the rental term on the new property is complete, evict the tenants and move into it yourself, renting out your townhouse.
    ^^^^ yep I agree with this.. It's exactly what we did..

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    Default Need some real estate/financial advice! Pls

    Have you calculated how much you'd pay in stamp duty and agent's fees if you sell? It's a lot, and might make keeping it as an investment a lot more attractive.

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    Sweetseven - You sound very savy! I will mention it to DP!!! I only wish I understood it a bit better

    Nancy - I agree it would be great to get some serious advice. Just have to convince DP to actually take it lol (stubborn man!)

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    BabyG4 - could I trouble you to expalin/share your story with me?

    Gentoo - Thanks for that heads up hadn't factored that in as yet!

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    Quote Originally Posted by Gentoo View Post
    Have you calculated how much you'd pay in stamp duty and agent's fees if you sell? It's a lot, and might make keeping it as an investment a lot more attractive.
    I agree. When we sold our unit and bought a house, I think it was close to $20k in duty and commission. Plus the conveyancing costs (which we didn't pay for as my work did it).

    Is there any chance of keeping your unit as an investment, and buying a house as well? that's what we wanted to do, but it was too much of a stretch at the time.

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    Quote Originally Posted by sweetseven View Post
    How about, use your equity in that property as a deposit to purchase an investment property - where the rent on the new property will be considered to service the loan.

    Then, once the rental term on the new property is complete, evict the tenants and move into it yourself, renting out your townhouse.
    Id do this too

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    Default Need some real estate/financial advice! Pls

    Quote Originally Posted by OneLove View Post
    BabyG4 - could I trouble you to expalin/share your story with me?

    Gentoo - Thanks for that heads up hadn't factored that in as yet!
    If you would like I can PM you some details and a great site that can explain it better then I prob could?


 

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