hollywood3307
New member
Hi all looking for an opinion on our current financial position as we’re looking at upgrading our home.
Current assets: Townhouse in Wellington current value 800k with a loan of 590k. (CV 1M)
Cash: 240k
Salaries: 255k (bonuses not included) - stable jobs.
Kids: none
Option 1:
Retain property 1 to rent. Rental income per week should be 700 p/w as a base. BC, insurance, water and rates are 4.5 k p/y. We have pre approval for 1.2m while keeping this asset.
Option 2: Purchase property 2 with the conditional sale of property 1. Budget indication without property 1 is 1.5m and the quality of houses at this level is much better. The market is looking interesting with lots of options coming on and sitting for yonks.
Given the current climate and interest rates I’m unsure if it’s realistic to retain property 1 even with pre approval. It feels close to the wire and potentially risky although the retention of the asset sounds like a good idea on paper.
Current assets: Townhouse in Wellington current value 800k with a loan of 590k. (CV 1M)
Cash: 240k
Salaries: 255k (bonuses not included) - stable jobs.
Kids: none
Option 1:
Retain property 1 to rent. Rental income per week should be 700 p/w as a base. BC, insurance, water and rates are 4.5 k p/y. We have pre approval for 1.2m while keeping this asset.
Option 2: Purchase property 2 with the conditional sale of property 1. Budget indication without property 1 is 1.5m and the quality of houses at this level is much better. The market is looking interesting with lots of options coming on and sitting for yonks.
Given the current climate and interest rates I’m unsure if it’s realistic to retain property 1 even with pre approval. It feels close to the wire and potentially risky although the retention of the asset sounds like a good idea on paper.