I think I should be seeing a good financial advisor… financial management is not my strong suit but I know I could be in a better position with the right choices. So here I am on the Ozb financial forum.
So financially I've been resting on my laurels, kind of hands off for a while but very unhappy with the missed opportunities when I look at my financial situation.
I'm 46 earning 180k (super Inc) PAYG contractor in IT, offered permanent position at 190k (super Inc) but not confirmed with letter of offer yet… I'm full time WFH so not tied to a location for work.
Renting a townhouse, but have to move out in January as the current place just sold (bloody owner could have given us a few weeks heads up to organise finance, but we only found out 2 days before it had an open home and couldn't organise finance fast enough, or we'd have bought it), anyway, we want more space and a house we can make capital improvements on.
I'm married W/ three kids (2, 5, 6) wife (civil engineer) not back at work yet. Will put youngest in childcare 3 days/week from 2022 and wife can return to 3 days and up to full time in 2023 or 2024 depending on her earnings (maybe 80k/year to start with) vs out of school care and kindy costs etc.
Wife is hyper risk averse as a result we have 175k in Usaver ultra (which makes me want to cry looking at other investment options performance over last 18months) earning less than inflation. After a lot of me taking to her, she's agreed to let me invest our savings as I see fit. I've been thinking about CFS Acadian Geared Global Investment or high risk crypto.
Finances: income 9.5k a month after tax, 2.3k/month to rent, 4k month in living costs, remainder into savings.
I'm 90% tenants in common share on a unit (10% mother, plan to split any proceeds 50/50) bought 2003 for 160k, worth 210k unimproved now with 112k on PI loan. It's positive geared 2k/annual.
45k into angel investment in prop-tech which I want to sit on.
Have dabbled in Bitcoin but am shitty day trader (sell low, buy high kind of shitty). Have 0.6 Bitcoin, used to have 2 Bitcoin and 400k dogecoins which I sold for 10k years back :'(
I was trying to build up a deposit but property prices are sky rocketing here in Paddington qld in last 12 months far outstripping my saving rate, given we are forced to move out in Jan, we want to buy a house ideally in the area because of kids schools and established friendships, etc, but even shitty knockdowns on 400m^2 are almost 1.3m here now (30% up in 12 months!!!) the dream of staying here is slipping away. I feel like I have to buy now, extend hard, or risk not getting into my own home at all with the property process tipped to keep climbing steeply over the coming years. I want to climb the property ladder and actually live in a nice place in a good suburb in the next 5 years. I don't mind living in a crappy place for a few years if we can improve our financial situation in the process.
I've run mockups with ubank and could maybe buy $1.2m property if I sell the unit, borrow 30k from mum and take all proceeds of unit sale (resulting in owing mum ~30k + ~45k) adding up to about 290k for 20% deposit + costs on a Ubank PI loan of 1m. All that depends on my permanent job being confirmed and getting them to drop the probation period clause 🤞. I could get a loan at <20% LVR but interest rates are higher, but that only pushes buy price up to 1.25m. I can fully service this loan on my income if being careful with expenses, so when wife is back to work we can service a big morgage comfortably.
Plan is to pay mum back asap with extra income from wife going back to work over next 1-2 years.
The investment unit frustrates me, with mum (75, retired) as part owner, banks won't let me refinance, maybe I can use the ~100k equity somehow but being 90/10 share with mum seems to complicate that, maybe not??? Last time I talked to accountant about it, he said let it ride and pay itself off. But the bank looks at it and only considers 50% rent which decreases my ability to loan more even if it's actually earning a a bit in real terms. I could pay off the unit and unencumber it tomorrow, transfer title 100% to me or just sell it to simplify things.
What to do? Go see an adviser? I need to get into our own house by end of January.
TL;DR - Have an underperforming investment apartment encumbered with split ownership. Need to figure out whether to sell it or borrow against it or ???. Have decent income and some savings, want to buy a home where can't really afford to live and trying to make it happen anyway. Can't I have everything with no effort?! Nope.