Join our investing community

do we sell or rent?

Discussion in 'General Investing Discussion' started by kiro, 24th Jan, 2011.

  1. kiro

    kiro New Member

    Joined:
    24th Jan, 2011
    Posts:
    1
    Location:
    Wodonga, Vic
    Hi, first time on so sorry if this is a dumb question. We want to down size & buy a new property which is going for $359K. We have been told we'll get max of $320 for our property. We owe $260K, plus have numerous CC debts & loans related to vehicles/equip for my husband's business. We have made the assumption that we can reborrow for the new property when we sell this one. It has now been suggested that we don't sell but rent this property out & borrow the whole amount for the new place. Assuming we could get the loan, is this the way to go? We are in our early to mid 50's, 1 teenager left at home, I earn $60K & my husband has a not very profitable business. I only have $25K in super, hubby has more but it is going down as he can't afford to add to it now that he is self-employed. Could this be a way to get some super?
    Thanks
     
  2. Damaged

    Damaged New Member

    Joined:
    9th Jan, 2011
    Posts:
    2
    Location:
    Sydney NSW
    Hi
    Going by the amount of money owing on your property and the cost of the new down sized property.You could be around $324k in debt once you have paid all the fees and commissions to move to a smaller home.Keeping your house and renting it and moving to a new one could put a enormous strain on your budget if things were to go wrong.If your were to do that the current family home would have to go in your name to claim the tax benefits against your salary of 60k.That could incur paying stamp duty again on your family home.As you said your husbands business is not profitable so you cant really claim against that.I would recommend paying down your debt more before doing anything.Sorry if i come across some what negative.
    Thanks
    David