Brisbane PPOR - Fixing a poor buying decision

First off, I would like to say thank you to everyone on this forum that regularly provides their knowledge and experience. It has been a huge learning curve trawling through the site. I wish I found this resource sooner.

I am hoping to get some opinions on correcting what I think was a mistake in purchasing our first home.

The situation: Purchased a 2-bedroom 1-bathroom townhouse in Kangaroo Point, Brisbane that was built in the early 1900’s. We bought this place a year ago shortly after moving to Brisbane from Sydney.

Having been there for 12 months the size of the home and issues with the neighborhood are really making me regret the purchase.

My partner wants to hold it as an investment and purchase another larger home, but I am concerned about taking on further debt and the impact this will have on our cash flow. I am also unsure if it even stacks up as an investment property or how I work this out.

If we sell to buy again we incur significant costs but could be the solution?

I have floated the idea of renting our place and finding a larger home to rent for ourselves, but the wife has it in her mind that she never wants to rent again. I’m also unsure if this stacks up financially?

Anyone been in a similar situation or have any general advice?

Happy to provide further detail if it helps.

Cheers

 

Hi Wu-Tang,
What are the reasons you bought the place initially?
What attracted you to that particular property and location?
I think you would be best to sit with a good mortgage broker who can work out borrowing capacity and the effect on your cash flow if you decided to keep vs if you decided to sell the property or keep and rent somewhere else vs keep and buy another property. Also get an idea of what your long term financial goals are.

 

I can't really offer any advice but I just wanted to say...

"Wu tang clan ain't nothing ta **** with"
"Wu tang clan ain't nothing ta **** with"

Lol, man I miss Chappelle's Show.

 

Hi Lindsay,

Thanks for the reply.

The convenience of the location was the primary factor but it also has a lot of charm being an old workers cottage.

We just didn't think long term enough. We had a meeting with a broker and her advice was to hold and buy again but isn't this to be expected given this is how she gets paid?

My financial plans do not align with more non-deductible debt so is a financial planner a more appropriate source for impartial advice?

Cheers WT

 

A good mortgage broker can show you the affect on your cash flow when looking at options ie. buying another property, keeping the existing as an investment property, renting a property and keeping the investment property etc etc You need someone who cares about your long term goals not just the next deal, a good broker will do that and also explain how you can build wealth via property but they should not be telling you it's the ONLY way to build wealth.
If you don't know what your long term investment/financial goals are then I certainly recommend engaging a Financial Planner, most Financial Planners will charge you and upfront fee for their time, so be sure you're getting value for money If you're concerned about non-deductible debt, ask the planner about debt recycling strategies.