Greetings! This is my very first posting. I have been reading so many informative and interesting posts here for some time now. First of all, I would like to express my sincere gratitude to all the members who generously shared their valuable knowledge and experiences. I'm living in Bentleigh, Melbourne and own a townhouse. Our place is great, but it's got only two bedrooms and we are in need of an upgrade to at least a three bedder. I have a son who is in Year 7 and he is seeking a place at one of those selective entry schools next year. My plan was to sell the unit later next year and decide where to buy depending on the result of his selective entry exams. For example, we may look for an apartment in South Yarra or a house/townhouse in Clayton or Berwick. The thing is many people around me keep telling me that if I have a definite need and plan to sell, I would have to sell now rather than next year, mentioning the peak has already reached and the US Fed's interest rates policy will start to affect the local property market etc. Of course, who knows what will happen in 6 months, let alone a year's time? But, I just want to seek an opinion of wise members in this community. What would you do, if you were I? Would you sell it now and rent for a while or would you wait until next year when an actual need arises. Any opinion would be appreciated.
Why sell at all, why not turn it into an IP ? If you can't afford to buy a new PPOR you can still rentvest
+1 to @Stoffo's comment. Do you need to sell? Have you run your situation past a good, investment-savvy broker? You may not need to sell at all, unless you cannot buy again without selling this one.
Maybe look at keeping the townhouse, and renting (especially if it's an apartment)? Also keep in mind the best time to sell is often the worst time to buy - so it kind of evens out anyway.... The Y-man
As a few people have already mentioned maybe rent-vesting would be your best option. You would be able to rent out your townhouse and find a property closer to your son's school. With this, you could still claim tax deductions from the expenses of your investment property while avoiding the buying and selling costs of moving. Maybe try running the numbers on a couple scenarios to determine which outcome is optimal for your family and finances.
Somehow, I haven't thought about buying an IP or rentvesting myself, but now I think I got the general idea. Thanks Trainee, Stoffo, Westie, The Y-man and Branden for your kind replies. You know what, I have been a great fan of you guys ever since I got to know this site. Take care!