NSW Advice needed - Rebuild Vs Buying new PPOR

We are in a dilemma to decide our move (1) rebuild existing house (2) buy new one

(1) rebuild existing house
- ~50yrs old house which will need good amount of reno in upcoming +5 or 10yrs
- land is 600+ sqm in syd hills suburbs
- happy with the local primary schools (kids just started primary) and happy with locality
- current house is small build house for growing family
- pending loan ~450k and equity around ~300k
- I think this rebuild option will roughly cost ~600k?

(2) buy new one
- 4b newer houses per our requirement are atleast 1.3m but there will be few compromises eg school area, house layout, etc
- keep the original house for rent

We have ~450k in offset and we are more inclined towards (1) rebuild existing house ( ~600k rebuild cost?) which will probably put the value of our brand new house around 1.5-1.7m mark and then probably in next 2-4 yrs buy another investment property...

What things should we look for in making final decision?

Thanks guys

 

Good Day Steffs,

So firstly this is a lot more circumstantial than the information provided and me giving an in-depth answer could be deemed personal advice.

But I do these breakdowns for clients so they get a better understanding of the numbers & specifics of each option.

Some things to generally consider
-CF position after the completion of each option
-Tax implications (pro's & con's of each option)
-timeframe for build (associated costs)
-DA/BA approval of current block - or what may be done in next 5-10 if left.
-Ability to add equity (the above numbers elude to 750k current value of property? + 600k build = 1.35mil valued at 1.6m? (created 250k equity?? potentially)
or new purchase for 1.3m
-how will each option affect future lending

There are so many aspects that can affect everything above and possibly the most important is how it affects getting to your long term financial goals & ensuring you pick the option that firstly you're happy to live with "lifestyle" but also assist you to reach your financial goals.

Kind regards


Jaxon Avery

Disclaimer: This is general information only & may not be right for your situation or circumstances.