Sell or keep home

Hey guys,
We would like to get some outsider views and insight to our current housing situation and advise on best possible action.
Our current situation is we’re aged 30 and 32 with 2 little ones, we’re living in Sydney. We’re currently living in our home of 8 years which we’ve managed to pay off.
Last week we purchased another property on a larger corner block of land for 1.2 m and would like to eventually build our dream home when we save up some more.
The 2nd house we’ve just bought also has no mortgage on it. We don’t have the funds ready to build and need 1-2 years to save up to do so.
House we have just purchased is very old but still liveable and rentable.
Considering the current Sydney housing market conditions and with the cash rate starting to rise and possible future house price falls, we’re considering selling our house that we’re living in and capitalise and we would then have enough funds to begin building on the property we just purchased. Keep in mind we’re not in a rush to build but due to current housing market conditions we’re thinking house prices will begin to fall and we’ll possible lose 100-200 k off the value of the house by keeping it (this is our guess).
Other alternative is to stay where we are, rent out house 2 and save up for a year or 2 till we have enough funds to build, we’re trying to avoid getting into debt.
Is it a bad idea to sell our house? We bought it for 600k about 8 years ago and now worth 1.1ml.
Are we better off keeping it for future investment, or should we sell it now, capitalise and have enough funds to build on land 2 and save up to buy an investment later outright when the cash rate really starts rising.
Also, not sure if this helps but our house were living in will get $750 rent per week, house 2 will get $500 per week.
Some advice on our situation would be great as we’re unsure and very confused which path to take, and don’t have much experience/knowledge in this field (our jobs don’t relate to housing what so ever) hence some feedback/advice would be helpful.

 

No one can predict the future, but here are a few questions to ask yourself.

What do you think prices will be in 20, 30 years when your kids will be wanting to buy property?

how about in 30, 40 years when you might stop working?

in 60 or 70 years when your grandkids want to buy property?

it might fall and you ‘lose’ 100-200k. But thats if you sell. How much did you ‘lose’ in 2018 when sydney fell? How much do you ‘lose’ in the next couple of decades if you sell now?

would it be a good or bad idea to go into debt, or to maintain or even increase the amount of property you own, given your prediction? Do you think there is such a thing as good debt?

instead of paying off the ppor loan, what if you had saved a second deposit and bought a few years after 2014? Even at the previous peak of 2017?

 

If you are serious about looking into property and investing, you need to get your head around debt. Even if you end up not wanting to borrow money, at least do it with a full understanding of the risks and what you are giving up by avoiding debt.