Hi, First time poster..thanks for taking time to read...would greatly value your thoughts! We are facing a big decision in our family. Scenario: We live in the country and own our home (only 16K mortgage to go) We also own a house in outer Melbourne...value about 750K...no mortgage. (That 750K returns about 18K a year in rental return.) We want to extend current country home...will cost about $200K for our growing family. We don't like the idea of debt! Choice A..Sell House .it has doubled since about 2003....house was new...now starting to show signs of wear. Pay 200K for extension...no debt...take remaining $450K or so after expenses/gains tax...invest in a wise (not risky) share portfolio/managed fund of some sort. (or maybe a cash positive property) Choice B - Debt...but keep house. Take a loan out for $200K....keep house in Melbourne. Pros of keeping house. Melbourne steadily keeps rising in value...mind you the bubble might be starting to ease. Pros of Selling: It might be time to harvest the windfall...the house has doubled. Having no debt is a nice thing to have...and $450K in investments should bring a wise return...that may be better than the rental return. What would you do? Thanks so much for any thoughts!