Advice needed please. Im a Mum with husband and 4 young adults. Our current house is too small to house them all. Current mortgage on family home is 230k.
We decided we would buy another house so the kids could live there, pay $150 each per week and we could negative gear the property. The new house cost $800k. This would help them out to save for their own house, and in 5 years we would sell our current home (currently worth 1.1k) kuck the kids out and move into the new home. Leaving us with no mortgage and the kids set to buy their own home.
BUT...as life would have it a curve ball has been thrown in. Last night son 1 said he was breaking up with his girlfriend (so we are now losing $150 p/w). Then son 3 told us that he's struggling with his finances atm, so he too may be unreliable in paying his share.
My question is, what would be better long term (5 years) for me financially.
Should l;
A: rent the new house out at $600 p/w. Negative gear it then sell it in 5 years.
B: Sell my current home now at 1.1k, move into the new house with no mortgage.
C: Let my kids who can afford it rent it and then rent out the extra rooms.
D: Another suggestion.
We love the new house and want to retire there. So we are happy with the new purchaee, just not sure which path would be the best financially long term.
We decided we would buy another house so the kids could live there, pay $150 each per week and we could negative gear the property. The new house cost $800k. This would help them out to save for their own house, and in 5 years we would sell our current home (currently worth 1.1k) kuck the kids out and move into the new home. Leaving us with no mortgage and the kids set to buy their own home.
BUT...as life would have it a curve ball has been thrown in. Last night son 1 said he was breaking up with his girlfriend (so we are now losing $150 p/w). Then son 3 told us that he's struggling with his finances atm, so he too may be unreliable in paying his share.
My question is, what would be better long term (5 years) for me financially.
Should l;
A: rent the new house out at $600 p/w. Negative gear it then sell it in 5 years.
B: Sell my current home now at 1.1k, move into the new house with no mortgage.
C: Let my kids who can afford it rent it and then rent out the extra rooms.
D: Another suggestion.
We love the new house and want to retire there. So we are happy with the new purchaee, just not sure which path would be the best financially long term.