Downsize and Be Mortgage Free ?

RobotWizard on 20/03/2024 - 04:46
Last edited 20/03/2024 - 22:12

Hi, my fellow OzBargainers,

I would like to seek your personal opinion on something I've been contemplating. A few years ago, I made this post and ended up purchasing a large property. However, due to some personal circumstances, my family is not extending anytime soon (I was about to get married, but things didn't work out in the end).

Currently, I reside in a fairly spacious 45SQ double-storey house with just three adults (family) living here. To be honest, most of the house doesn't even get used. Recent events have prompted me to consider whether downsizing and moving into something smaller might be a better idea for now. Due to its size, the house requires constant cleaning, and we spend most weekends tidying up. Another significant factor is interest rates. Although I'm fortunate enough not to be struggling, I'm uncomfortable with the amount of interest I'm paying each month on this property.

My current situation is as follows: the current property is worth anywhere between $1.1-$1.2M, and I owe approximately $650K, leaving me with $450-$550K in equity. Upon researching, it seems I could easily purchase a good 4-bedroom property in outer Melbourne suburbs for that price. The idea of being mortgage-free feels almost unreal, but at the same time, I'm uncertain if I'll be able to afford something similar in the future.

My current monthly repayments to the bank are approximately $3800, of which approximately $2800 is just interest. I feel like instead of wasting this money on interest, I could save it and potentially upgrade in the future if needed.

I've created a simple poll below if you don't feel like commenting, and as always, thank you, community, for your time and valuable input.

Edit: I want to express my heartfelt gratitude to everyone who has contributed and offered invaluable suggestions. After reviewing some comments and crunching numbers, it has become apparent that selling my property at this time doesn't align with my best interests. Considering the substantial expenses involved, including approximately $55,000 in stamp duty when I initially purchased the property, along with an estimated $30,000 to $40,000 for a new property, lawyer fees, agent fees, moving costs, and more, I would incur a significant financial loss, amounting to several hundred thousand dollars, without any tangible benefit. The notion of selling was merely a passing thought, but upon reflection, I realize that owning a larger property also entails increased maintenance responsibilities. Once again, I am immensely grateful to the OzBargain community for steering me away from hasty decisions. Please accept my sincerest appreciation to all :)

Poll Options

  • 88
    I would sell and downsize
  • 146
    I would keep the current property
Financial Home Loan

Comments

  • HardQuiz on 20/03/2024 - 05:04

    So you sold the Canberra property?

  • geekcohen on 20/03/2024 - 06:04
    +14

    I'm uncomfortable with the amount of interest I'm paying each month on this property.

    I think you are speaking for most of Australia. I think everyone is uncomfortable with the amount of interesting they are paying on their mortgage regardless of property size and value.

    • RobotWizard on 20/03/2024 - 21:07

      Have to agree unfortunately, its massive chunk of money going on interest only for majority of people.

  • deveshwar0 on 20/03/2024 - 06:45
    +25

    I would have certainly suggested selling and downgrading iif selling and buying costs were not prohibitive.
    You tend to lose cerca 10% of property value towards agent commissions, stamp duty, moving expenses, etc.
    Given that you're not struggling to make the repayments and there is a possibility of upgrading to a bigger property again, I would suggest to keep the current property.
    Surely the capital gains on the current property would outweigh the interest and cleaning expenses.

    • foxmulder on 20/03/2024 - 08:04
      +1

      This, probably rent out one or two rooms, surely help with the mortgage payment.

      • peterpeterpumpkin on 20/03/2024 - 12:32
        +8

        Just a note that many people don't understand that once you rent out rooms, the rented floor space of a private property (i.e. room plus relative proportion of common area) is now subject to capital gains (on a pro-rata basis). It can be wise to get a property valuation performed before you start renting.

        The benefit is that general expenses such as electricity, interest on her mortgage and rates can be proportionally deducted.

        The conundrum is that you can leave a PPOR for up to 6 years and pay no CGT at all. Under most owner-occupier loan contracts you will legally have to inform your lender, who would then refinance your loan into an investment loan which may have higher interest repayments, but this extra interest will be tax deductible. You'll have to perform some calculations and forecasts to determine which living arrangement will give you the best bang for your buck in terms of lifestyle and asset growth.

        • thewooz on 20/03/2024 - 21:10
          +6

          All very technically correct…how many people actually do this when renting out a room I wonder, I doubt it is a significant proportion

    • RobotWizard on 20/03/2024 - 21:11

      Thank you, have been doing some calculations today and you're absolutely correct, maybe down the line if I can make some good profit on this I can re-consider but at this stage it doesn't really make much sense.

    • legendary-noob on 21/03/2024 - 11:57

      Definitely this
      Wont go into lengthy reasoning why but as long as OP is not struggling…
      Remember, the current value of property probably also reflects sentiment / future prospect
      Buying into a cheaper suburb means that you reduce your potential upside in the future as well

  • barge-in hunter on 20/03/2024 - 07:06
    +7

    As much as selling/buying again is costly - I would do it to be mortgage free. At your life stage, the extra compounding interest you’ll earn from using that money in other investments will be very substantial.

    Be in debt for investments - sure - interest there is all tax deductible… but not on your ppor.

    This is based on the assumption that if your life situation changes again (find a new partner to marry) you aren’t going to turn around and upsize back to a similar 45sq house. Housing prices just seem to keep going up, so downsizing now to upsize within 5-10 years is not a good proposition imo

  • try2bhelpful on 20/03/2024 - 07:36
    +13

    Before you head to the outer suburbs have a good look at what the amenities are where you purchase. As a general rule houses in established areas with better amenities appreciate faster than the outer suburbs. If you do decide to get married and have kids what will be the best position for them? What schools and public transport is available?

    Personally I think your current house is way too big even if you do have a family. However, I wouldn’t necessarily head out I would look inner and go a tad smaller.

    • jjjaar on 20/03/2024 - 10:52

      100% agree with this.

      OP, you’ll be able to reduce your loan amount / interest amount / house size by a lot even if you do stay in the same area and downsize to something around the 800k mark.

      If you’re worried that this price won’t allow you to grow in the future, focus on non-strata blocks (in Vic 2 on a block don’t have active owners corp) where you can extend or knockdown rebuild later on (blocks <300sqm need a planning permit from council, blocks >300sqm only building permit), rather than selling and moving again.

  • Muzeeb on 20/03/2024 - 07:38
    +5

    This comment by rektrading in your last post aged like milk.

    Rektrading has been quiet for nearly 2 years now.

    and we spend most weekends tidying up

    This makes no sense to me. How dirty are the adults living in your house?

    • netjock on 20/03/2024 - 08:17
      +1

      Says Rektrading is living in Hong Kong. Probably detained indefinitely by the Chinese government. Who knows. Or the cypto lending triads are after him since Celcius / Voyager / FTX all went under and he had loans and collateral.

      Worst part about borrowing money to live on when your collateral disappears (say Celcius / Voyager / FTX) is they still want to try to recover the loan 100% and pay you cents in the dollar for your assets.

      A bit like having a transaction account with a bank that has $500k and a home loan for $500k. If the bank goes under the government will give you $250k back (the guarantee) and whoever buys the loan still wants their $500k.

  • JimmyF on 20/03/2024 - 07:44
    +2

    Sell and downsize. As you said, you're not enjoying life as such, just spending all weekend cleaning and tidying up! No one wants that.

    You don't have to be Mortgage free, maybe a smaller place in the area area you are living in?

    BUT if you do become Mortgage free, continue to pay a fake Mortgage in the way of saving that money. So continue to bank at least $3k/month into savings.

    This way if you ever take out a Mortgage again, you're ready with a deposit and being able to pay the loan.

  • Overclocked91 on 20/03/2024 - 07:53
    +1

    I guess it depends on your age too. If you're a younger bloke, while you can work etc, keep the larger property. If you're looking at slowing down, downsize. I do agree with you tho. The feeling of being without a mortgage would be amazing. We are close, only a small owing but I hate seeing the interest repayment each month.

    • RobotWizard on 20/03/2024 - 21:16
      +3

      In early 30's but feels more like early 50's

  • elgrande on 20/03/2024 - 08:02
    -1

    Sell and buy outright in Melton. It has everything you need and a hospital on the way.

    • stirlo on 20/03/2024 - 08:38
      +6

      Which you need when you get jumped and stabbed on your way to the local shops…

      • try2bhelpful on 20/03/2024 - 09:03

        Yes Dutton.

      • try2bhelpful on 20/03/2024 - 14:41
        +2

        Just how paranoid are you? The vast majority of this violence is “bad guy” to “bad guy”. If you look at the statistics the likelihood of being involved in violence is incredibly tiny. But we always get someone parroting rightwing media scare campaigns.

        I’ve lived in Fitzroy for over 30 years and I’ve seen a handful of incidents and have yet to be a victim of violence. Our car was stolen from opposite Russel St Police Station. You would think that would be a safe area. People need to be aware of what is happening around them and take security precautions but you miss out on a lot on life if you hide under the bed.

    • Hardlyworkin on 20/03/2024 - 09:33
      +1

      You must know the Op pretty well. It depends if someone just requires their needs met and doesn't care about their wants. Melton could probably provide everything I need though barely anything I would want.

  • EightImmortals on 20/03/2024 - 08:07
    +1

    No better feeling than being debt free. Go for it.

  • netjock on 20/03/2024 - 08:18
    +1

    Debt recycle, don't sell and down size.

  • 2jzzzz on 20/03/2024 - 08:42

    Where can you buy a house in Melb for that much?

    And could you rent it out for anywhere near neutral and hold onto it?

    • RobotWizard on 20/03/2024 - 21:18

      Prob a bit overkill from my statement but look around in bit far west, you can find 3-4 beds 20SQ for around $600K easy.

      • drprox on 21/03/2024 - 10:13

        Melton and surrounds, just say it :D

    • THICKnSLOW on 21/03/2024 - 23:34

      Definitely can find a house Eastern suburbs, circa 1990's.

      Not today though

  • verio on 20/03/2024 - 09:51
    +1

    There is no right answer here. It all depends on what do you expect to happen to your life in the next 4-5 years.

    If there is a chance that your family will be expanding again, then forget about selling and keep things the way they are. You will lose time & money on selling, moving out, then buying again when needed and then moving in.

    Maybe change the approach in regards to cleaning with your family. Instead of cleaning every weekend, make it very light cleaning one weekend and good cleaning the weekend after.

    • RobotWizard on 20/03/2024 - 21:28

      Honestly owning something like this was always a dream and do have plans to expand however unsure when it will be, in terms of cleaning I guess we could get away with not cleaning for week or 2 but have white tiles so even little stuff is very visible.

  • Franky23 on 20/03/2024 - 10:01
    +5

    Some people have wisely pointed out the costs in selling and buying again - however, also consider the ongoing interest you'll pay every year in keeping the current home.

    Australian's have an unhealthy obsession with large homes, while the average family is getting smaller. Personally, I would live in a smaller home that would likely have cheaper insurance, energy costs and ongoing maintenance. Also, spending your weekend maintaining a large home has a big emotional toll to people who would rather spend time with friends and family.

    In the end, it's about what you prioritise in life.

    • Hardlyworkin on 20/03/2024 - 11:11

      I agree. After living in a moderately sized house on a large block for a couple of years we are reconsidering whether we want to spend so much of our time cleaning, gardening etc. The reality of living in a larger place is different from the dream we buy into. Newer house on a smaller block next time.

  • hasher22 on 20/03/2024 - 10:14
    +1

    Do what's best for you, financially and mentally and physically.

    I know you want to be debt free though could renting it out (may cover mortgage?) and purchasing a smaller home be option? I don't know the financial burden of doing this. But also the responsibility of being a landlord if you want to be one.

    Personally, I like being debt free and knowing that I have a home to go.

    But if your life changes, at least you know you know you could possibly start a new mortgage with the new partner and a bigger home if need be or even better, if the new home caters to your new family needs.

  • Dollar General on 20/03/2024 - 10:41
    +3

    It’s not easy under Albanese but with Dutton you can only afford mutton

  • star-ggg on 20/03/2024 - 10:42
    +11

    I would say renting out your current house and renting somewhere cheaper would be an option.

  • ForkSnorter on 20/03/2024 - 11:02
    +1

    Are you telling me your house is over 400 square metres? That’s incredible. Probably worth more than your estimate. Can’t you use robot vacuum cleaners to clean it? Who are the 3 adults living there? If they’re your parents, you may be limited in where you can move to. $650k is too much to owe on a $1.1 million house and a standard salary in my opinion. But that’s the society we live in. We have been scammed into thinking that is normal and acceptable. Signing up to 30-years of debt slavery in order to enrich well-off baby boomers.

    On the other hand, if you sell and downsize, you’ll lose about $60k-$75k in equity from stamp duty, agent fees, moving fees, etc.

    • RobotWizard on 20/03/2024 - 21:37

      I never really tried robot vacs and stuff but might give it a go, Its just my mum and one younger sibling, yeah but I feel like the way rent is climbing, owning a house might be out of reach for future generations, I've been crunching some numbers and overall after paying stamp duty again I might be losing at least $100K or so only in stamp duty, plus moving costs and agent fees on top.

  • bazingaa on 20/03/2024 - 11:14

    , leaving me with $450-$550K in equity. Upon researching, it seems I could easily purchase a good 4-bedroom property in outer Melbourne suburbs for that price.

    which Melbourne is this mate? I am in outer SE Melbourne ~45 km from CBD and only could get a 30 yr old 2BR house for this price, neighbour's is 3BR and recently sold ~680k
    new builds farther down from here goes around 800k - 1 M or so.

    • freefall101 on 20/03/2024 - 13:33

      I'm guessing either west or north west. Out east has just exploded in price, no matter how far you go.

      Melton or Werribee areas it's possible to find a 4 bedroom place around that price. Or Broadie. Otherwise there's the odd $550k townhouse with 4 3x3m bedrooms upstairs and open living area in the north on a plot of land the size of a shoebox.

      IMO I'd rather live regionally with somewhere that has a decent vline service. The roads getting in/out of those outer suburbs are awful, travel times on trains with 800 stops are awful and there's not much to do.

    • RobotWizard on 20/03/2024 - 21:44

      I prob exaggerated it a bit, but yeah plenty of 4 beddies for around $600k'ish around west side.

  • Duckie2hh on 20/03/2024 - 11:20

    Due to its size, the house requires constant cleaning

    Just close off those parts of the house, plastic wrap and seal the doors. EZPZ

  • wikimee1 on 20/03/2024 - 12:01

    Have you considered renting the rooms out to cover the interest?

  • tsunamisurfer on 20/03/2024 - 12:08
    +1

    In a world where stamp duty exists I would not downsize.

    You never know if the opportunity to extend your family will occur again, life is odd like that.

    If you can manage the mortgage, keep it as it gives you more options.

    If you want to make some money maybe rent out a room?

  • OzzyBoy1 on 20/03/2024 - 12:09
    +1

    Outer suburbs aren't always great. And all of them aren't same as well. Some outer suburbs are pretty nice and not extrememly far from CBD. For example in the Northern side of Melbourne if you see South Morang or even Mernda etc. they're like 30KM from CBD. They don't have all the facilities in the world but still decent suburbs. 45sq home is very big tbh as well. So look at downsizing to a point and check out various places that fits your bill. If you're concerned about interest you paying on your loan may be consider offset account and put any savings that may have there?? If you don't have enough savings then consider downsizing a bit and have a load with offset facility. Interest @ 6% in current environment on $650k would be pretty huge. For the record people in Sydney are going as far as 50 to 60km from CBD and all houses there costs $ 1.2M easily. I can't fathom interest on such loans..

  • Ashless on 20/03/2024 - 12:23
    +1

    If you moved into a $500k property debt free, the repayments you save can be put towards a future place, but the ongoing capital appreciation of a $500k property (further out of town) will be much less than the capital appreciation of a $1.1m property in the future. Once you factor in selling, buying and moving costs to a $500k place, and then again to your "future place", I would stick with your current place as moving is expensive.

  • wau2 on 20/03/2024 - 13:36
    +1

    Debt free is great, but getting back into property can be quite prohibitive due to high cost. Can you rent out current house and take out another loan for a smaller property? Would that be financially sustainable for you?

    • RobotWizard on 20/03/2024 - 21:48

      Could technically rent it out but I am not sure if other people would look after the house same way as I do and can end up with massive repair bill in the end.

  • StalkingIbis on 20/03/2024 - 14:01

    What will the extra money do for your life?

    • RobotWizard on 20/03/2024 - 21:49

      Maybe travel, take some time off work, not worry about how my family would afford to pay for mortgage if something were to happen to me

      • wau2 on 20/03/2024 - 22:34

        That sounds like stress free living!

      • StalkingIbis on 22/03/2024 - 08:44

        sounds pretty good!

        Youll be taking a hit of real estate fees + new stamp duty fees though.

  • Look Up on 20/03/2024 - 15:50
    +2

    Keep the current place

    Since you're not one to make rash decisions, you obviously bought the current place after all the positive attributes swayed you over

    So unless a garbage tip or motorway is being built next door, what has actually changed in terms of the attractiveness of the property?

    If you're not struggling financially to service the loan, all the other issues are actually non-issues:

    … most of the house doesn't even get used.

    Declutter and seal off the spaces so cleaning is easier

    Find a hobby and/or side business that makes use of the space with bonus points if you involve family

    … the house requires constant cleaning, and we spend most weekends tidying up.

    Who/what is causing the constant mess that needs constant cleaning?

    Is someone being a lazy ass and then roping in the rest of the family to cover them?

    … The idea of being mortgage-free feels almost unreal, but at the same time, I'm uncertain if I'll be able to afford something similar in the future.

    Say you make the switch and go mortgage-free

    Do you have the time and skills to now manage $X/month in investments to match or exceed the capital gains you have now forgone?

    Because that's what a home loan in Australia actually is - enforced saving for people without sophisticated financial skills to generate a positive capital gain over a long term horizon

    • RobotWizard on 20/03/2024 - 21:59

      Thanks man, those are some good points, in terms of attractiveness of the house, nothing has changed at all and it still feels unreal at times that we are fortunate enough to live in a place like this.

      In terms of cleaning, it's mainly dust, everything gets dusty fairly easily and on top of that we have white tiles on ground floor so even tiny particles are visible on those, its not just inside the house as well, every weekend I spend couple of hours to keep whole front yard and front area clean/tidy, every now and then clean the windows (in and out) which takes me whole day or sometimes bit of next day as well, anyways I feel like these are just first world problems tbh, it's something I didn't really consider or think about before buying a bigger property.

      • mrvaluepack on 21/03/2024 - 07:49
        +1

        If its just dust on the floor, like others have said - get a robot vacuum mop combo. I have the roborock s7 and its been great. You'll still have to do maintenance on the robot but that sure beats vacuum/mopping the entire house.

  • ihbh on 20/03/2024 - 16:22
    +1

    I reside in a fairly spacious 45SQ double-storey house with just three adults (family) living here

    What are your likely future household needs? Have you given up getting married and having a family?

    Two lots of transaction costs are significant if you sell and need to comeback to this situation.

    Can you rentvest? Can you rent this one out and rent a smaller place for yourself (and the two others) to give yourself thinking time?

    In the meantime, on the positive side, when you take a girl home, she'll at least think … hmm… at least this guy's got a comfortable place vs oh, it's the back of my car.

  • Tiredman on 20/03/2024 - 16:50
    +2

    stamp duty. agent fees.

  • souljah on 20/03/2024 - 17:45
    +1

    Nothing more ludicrous than stamp duty and agent fees. 20-30 years ago 2% agent fee and 5% stamp duty (here in Vic) was reasonable cost to buy/sell or sell/buy but now?

    If anything agent costs to advertise are lower in the digital age. Just robery! How state governments can justify stamp duty costs at these prices is an absolute joke.

  • boomramada on 20/03/2024 - 18:14
    +1

    Why are you asking us? isn't it all depends on your circumstances? ie your wages, age, lifestyle and family expenses?
    are you single, if not what do your partner's think?
    Do you have dependents? how far are you from work?

    My current monthly repayments to the bank are approximately $3800, of which approximately $2800 is just interest

    Are you the only breadwinner?

    What going to happen travel-wise, if you move away from your current location, advantages and disadvantages?

    I'm uncomfortable with the amount of interest I'm paying each month on this property.

    Why now ? you didn't through of that before?

  • Miss B on 20/03/2024 - 19:17
    +1

    I'm happy in my $500k place in the outer suburbs, but many people don't seem to be. Probably best to make a pro/con list.

    What do you gain/lose by doing it vs staying where you are? Then consider what your priorities are/what's important to you.

    Less time cleaning, but will you spend more time commuting or visiting friends/family? Will that mean you see them less? Do you want a bigger house and will just end up buying one down the track? Have you looked into the cheaper suburbs? They get a bad rep, I personally haven't had any issues in my 20 years living in cheap areas, but some people seem to have endless issues.

    When you bought the bigger place I know you said you were thinking about starting a family, but was there anything else about it? Is it important to you to have a nice big house if you get married and start a family or is it pressure from somewhere else? Will the people living with you now be living with you if you start a family? If you still plan to start a family, have you looked into the schools in each area? Does that matter to you?

    If you can pay more on the mortgage you will pay a lot less interest over time. Can you afford to make extra repayments, or do you have an offset account? Can you refinance and get a cheaper interest rate or ask your bank for a cheaper interest rate?

    It's really a personal choice. What do you want?

  • Dollar General on 20/03/2024 - 19:27

    Bunga Bunga parties

  • greenie on 20/03/2024 - 19:28
    +1

    Maybe consider renting this house out and you rent a smaller place elsewhere?

    • SuperLate on 21/03/2024 - 01:33

      This. Or sell current property and buy two smaller ones, a residence and an investment.

    • Dollar General on 21/03/2024 - 07:54

      Land tax in Victoria is a killer thanks to Dan. Hardly any yield available as a rental

  • nimnomnimy on 20/03/2024 - 20:13

    consider capital gains on both

  • rickdwp on 21/03/2024 - 10:07

    I reside in a fairly spacious 45SQ

    Fairly spacious? That's a freaking McMansion. Unless ya planning on having 14 kids then yeah, downsize.

  • Nitrollparty on 21/03/2024 - 12:03

    I'm doing exactly this, built my house 9yrs ago, sold it 3 months ago for a tidy sum. bought a block x4 the size of my previous outright (1200m2) out of the city, 1 street back from the river. stunning. and just finished off selections and signed a contract for the new build, all done with the profits from selling and now mortgage free. only downside is im back with my parents untill the build is done. small price to pay i think

  • renster72 on 21/03/2024 - 13:33

    We sold a property to pay off home and being mortgage free is great. Financial Stress is the worst downsize enjoy life,, Go on Holidays

  • trapper on 21/03/2024 - 15:50

    Could always get a boarder in one of those spare rooms, that will help cover a decent chunk of that mortgage payment.

    Also if you don't like cleaning just get a cleaner, pretty cheap really to give the place a quick once over each week.

    Hope you have a robot vacuum already, otherwise 100% get one. They are great.

  • johnfuller on 21/03/2024 - 15:52

    if you can afford it, stay, if you cannot, sell and move to something smaller mortgage free.

  • drfuzzy on 21/03/2024 - 18:31

    Selling is a foolish idea unless your current property is a poor investment. You'll just generate transaction costs and stamp duty for little benefit.

    I would choose between staying put, rentvesting, or buying a second property.

  • frostman on 21/03/2024 - 21:20

    i'd downsize, particularly as you're not using it.
    Save $3,000 / month ($33,600) interest alone, not including no mortgage weekly repayments.

    So $3,800x12 = $45,600
    x 4 years = $182,000.
    Your downsized property will appreciate and you'll have just under 200K deposit.

  • jaimex2 on 21/03/2024 - 23:17

    You're in the perfect position to rentvest my friend and exploit the bejesus out of the system.

    Learn what capital gains tax is.
    Learn what the 6 year rule is.
    Learn what negative gearing is.
    Learn what quantity surveyors do.

    Get yourself a nice rental and watch the ATO and someone else pay your home for you.
    Dancing inside the RBA's lobby is mandatory at this point.

  • SydneySchnorrer on 22/03/2024 - 08:24

    I wouldn't be doing anything until rates resume normal activity.

    Not only will give this give you additional clarify and comfort but if you did decide to sell it'll make your property more attractive to other young families.

    All the best.

  • Brianqpr on 22/03/2024 - 09:36

    My in laws did this but ended up in an inferior house in an inferior suburb and probably spent $100k in stamp duty etc to take maybe $150k off their mortgage. They also did a fair bit of renovation on the new place and not all of it would add much value. They are however obsessed with having no debt and retiring to the point of being annoyingly tight.

    Not to mention the fact their old place was on a good size block that would be appealing to developers.

  • knobbs on 22/03/2024 - 09:59

    Not sure I have something wrong here but 45m^2 (45sq) seems like a house made for ants. I'm in a 150m^2 townhouse with 2 adults 2 kids it's jam packed.
    What am I doing wrong?

    • bazingaa on 22/03/2024 - 11:19

      45m^2 (45sq) seems like a house made for ants.

      45 SQ = 4500 ft^2 = ~418 m^2

      SQ Unit

      • knobbs on 22/03/2024 - 12:30
        +1

        Ohhh thank you, did not think anyone in Aus would be using ft. Make sense now and yes 418sqm is a LARGE house, I could only dream

        • bazingaa on 22/03/2024 - 12:57

          I learned this in a previous thread couple of weeks back, lol

  • Toph Beifong on 22/03/2024 - 17:27

    If you are still capable of working to keep up with monthly repayments, I would keep it. If you sell, you will pay the real estate agent 2-3% commission on a $1M+ property. You will then pay stamp duty, settlement agent fees, various other bank fees in acquiring another property. I'm guessing your property is in a fairly decent suburb so I expect stronger growth compared to properties in the outer suburbs.

  • Bargain4Days on 01/04/2024 - 01:15

    Hard to see without looking at numbers, consider the following;

    Renting out PPOR (see what rental yields you can obtain, might be worth looking into it).
    Use equity from PPOR and buy an IP with good growth (Builds up capital and tax advantages and later you can debt recycle if you like)
    Rent somewhere else that would be more ideal (Not sure what your family situation is like but rent vesting is a good idea)

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