Dream Home, 10 Year Plan

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  brendanm on 15/01/2023 - 15:16

  +1

  Have you considered that the place you want to purchase will also increase in value?

  • 

    bargaingambler on 15/01/2023 - 16:02

    The 2nd investment property we’re looking at is around 600-700k which we feel like we can manage low - mid difficulty with rent around the $600 mark. While the dream block is probably double the the price and we don’t think the rent will also double

    • 

      Shadowsfury on 15/01/2023 - 18:31

      But a $600k place going up say 40% in the next 10 years is very different to a $2m block doing the same thing.

      • 

        bargaingambler on 15/01/2023 - 21:26

        True, maybe I should look into securing a big block instead of an investment

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  Jolakot on 15/01/2023 - 19:30

  How much are you able to save each year, and how much do you expect your wages to go up by in the meantime?

  • 

    bargaingambler on 15/01/2023 - 21:23

    Save roughly 40k every year, annual salary goes up 3% every year

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  tsunamisurfer on 15/01/2023 - 19:36

  +1

  What was the question?

  • 

    bargaingambler on 15/01/2023 - 21:28

    Is it financially smart to buy a 2nd investment at 700k ish and sell up both investments in 8-10 years time to buy a 4000m2 ish block to retire on

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  SBOB on 15/01/2023 - 20:47

  +2

  In 10 years time that 4000m2 block real estate area will likely be subdivided and split into ticky tacky little houses

  • 

    bargaingambler on 15/01/2023 - 21:25

    Quite possible, maybe we should try get in earlier

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  Sum-Ting Wong on 16/01/2023 - 07:35

  You’ll get much more helpful answers on AusFinance sub on reddit

  • 

    bargaingambler on 16/01/2023 - 07:57

    Thanks for the recommendation. I’ll have a look

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  Meho2026 on 16/01/2023 - 07:57

  +2

  Why not just sell everything and buy the dream now?
  You have $630K in equity in the two existing properties and $80K in the bank.
  So if you sell those properties and buy at the lower end, around $1M, your loan will be around $300K.
  Go into it with the idea of adding value over the next 10 years by renovating, extending or subdividing.

  • 

    bargaingambler on 16/01/2023 - 10:17

    The current tenants are great, generating $420/week. We could sell the current house we’re living in and service the 4000m2 block loan with low - mid difficulty. Thanks for the idea

• 

  Surfer Dude on 16/01/2023 - 15:26

  +1

  You want my advice?

  "…Buy a 4000m2 ish block to retire on"

  What does retire mean to you?
  Does it mean not having any more debt owing to the banks, does it mean not having to work full time anymore, does it mean being able to take up photography instead of your current trade to pay off the remaining mortgage on the big block, does it mean spend your time raising and educating your children full time?

  Once you're able to define the above (retirement), save up some money (e.g. $5k) and spend that $5k living that retired life for a month by renting a house or AirBnB for a month to see whether that idea of retirement is actually what you want (you may find you don't actually want the added tasks that come with maintaining a 4k sqm block