Trying to work out what to do with my property that's nearly paid off

Hi guys, just wondering if you could give me some on advice on upgrading to a new, more expensive house from my current one. I believe it is currently worth 460-490k and is in Capalaba, qld. I have put in a brand new 25k kitchen this year, and also currently having the pool and deck completely redone (costing around 17k)


I’m looking at purchasing a house next year, possibly in Rochedale or around that area. In my head I have the budget at around 850-950k. My income is currently around 10k per month after tax, with a wife currently not working. I have 300k left on my mortgage with 250k cash sitting in mortgage offset account.


I am seeking professional advice shortly on the best way to go about purchasing my new house, but in the meantime would like any advice here you may offer.


If I keep my primary one and rent it out (little bit hesitant with the brand new features) I could use it as an income stream and possibly be able to borrow less for my new property, or sell it off and have a larger budget/less of a mortgage. I also work two jobs and would like to give one up when possible (could be a factor in each decision). Tax breaks also factor in to a decision as I pay a lot of it...


What would be the best way to structure/package this?

 

You're probably doing the right thing by keeping your savings in the offset account. This will allow you to use these funds as a deposit on the new house and maximise tax deductions on the existing property.

Selling your existing house will give you a larger deposit and reduce the need to borrow as much for the next property. When I faced a similar decision about a 18 months ago, I considered how that house performed during the period I'd owned it, and how it was likely to perform as an investment moving forward. I decided that I'd never be able to buy into that area again. I also looked at the outcomes in about 15 years, then decided I'd be much better off keeping the existing property. Perhaps give this decision some consideration with these things in mind.