Help! Do we sell or keep our home, in a pickle

What do you know about real estate development and the childcare business? I would think buying an index fund that tracks the ASX200 or SP500 would be less of a "gamble" than an individual with no experience in real estate development or childcare trying to get into that.

I would suggest you speak to a fixed fee (no commission!) financial planner, as I am concerned you are unable to ascertain your own risk appetite and are going to bite off more than you bargained for.

 

Depending on which faith you follow maybe this could be a consideration or at least have a talk with them.

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What business are you in? Hope not too private question. Really impressed and inspired by your earnings.

 

What a mess. Do people realise that building is actually a profession ? I wonder if they do own teeth repairs or surgical operations.

Pickle indeed, I have seen plenty of people with more money than the OP totally stuff up, and if not careful, the losses will be from every direction.

If holding you have to be sure you can hold everything till the next time a boom starts, that could be many years.

Income or job loss anyone ?

I have no idea what you should do really, maybe seek some professional help from someone who understands the finances and taxes.

You also should face the fact, that issues like this can have long lasting effects on personal relationships too, do not ask me how I know

 

Mess? They own 2 x million dollar properties outright, have a few hundred grand in savings and seem quite confident about having a million in savings in a year.

With negligible holding costs, income could go down to nothing and they'd still be fine for years without having to sell assets. At age 30!

 

I read Syd ?

The market is down already, builders are going to wall, it is the worst time to speculate, build costs climbing, many things to consider.

Have you ever built ? It is a headache when things are going you way

I am sure no one likes losing money, and the OP themselves feel it is a pickle, maybe talk up the position to them if you envy so much, I won't be blowing smoke anywhere.

It is a tricky position, no doubt in my mind there is much to consider.

 

I'd like to be in a pickle where I could save $600k in a year....

Honestly OP, like others have said, you are doing a great job to have achieved such a strong cashflow and still be willing to happily live in a $1.1M house. So many options available to you and if in your shoes, I would be happy with stream of cashflow, focus on that, live as happily as possible and purchase some ETF's regularly from here on and close your eyes.

 

The ability to save, or the amount of cash in the bank has nothing to do with exposure to potential losses from the/a wrong decision/s with property, and the attached potential effects on relationship/s if wrong decisions are made.

These 2 things are not the same.

Maybe I read the OP wrong, it seemed they were asking about the property/s to me, not looking for pats on the back re cash.

 

I would choose the option of keeping and staying in your original home for now.
So you’ve already got 300k of the required 1mil needed for the build. Maybe wait and save for another 6 months the save the next 300k taking you to 600k, whilst organising all the build details and conditions in the meantime.
Then start building and you’ll have 8 months to save the rest of the money required for the build which should be plenty of time.

We were in a similar position with our last townhouse development, wanted to self fund and not bother with banks. Had a business making similar money, maybe slightly more and needed about a mil in future earnings to be able to complete the development. Was a bit risky but we were young, about the same age and could always work harder or work something out if required. Actually, I think the build finished a few months earlier than expected and we were a few hundred k short, so we had to get a private loan to finish off.
But in this case, I don’t think your build will finish before 8 months. Maybe wait a little longer before you build but depends on how risky you like it.
You could always sell your own home if you get into any trouble.