What should we do? Sell to build?

Hi guys,

Just after some advice.. we have just purchased our ‘dream’ acerage that settles in April. It does have a small liveable cottage on it, however we are wanting to build our ‘dream’ home, but we are not sure how to go about it.. here’s our situation:

IP 1 - approx 300-350k equity
IP 2 - approx 100-120k equity
IP 3 - no equity as only just purchase and settled
PPOR (average) - not yet settled (this is our first home so very exciting to move out!)

So to build our new home on the acerage should we sell IP 1 and use almost all cash? Or is there something else you guys would suggest? We did use some equity to purchase properties 3 and 4 so would need to double check with the bank what is actually left.. I also think for the time being we are close to our Borrowing capacity.. so should we just wait?

Thank you

 

Are you using a broker? From your post it seems to suggest not, in which case I suggest getting your whole structure reviewed to make sure it's as it should be, and go from there. If servicing is getting tight, getting the structure right is most important before you move forward.

Your broker will be able to let you know what's possible in regard to the build as well.

 

Hi Maddy,

I think it really depends on who you are and what you want for the next few years?
1) If you want to go hard and make sacrifices talk to someone about squeezing some more borrowing out of your situation for your build.
2) And if you're ready for a family and want to take things easy for a while you could sell up, build your dream home and enjoy your success for a while.
3) And somewhere in between you could move in and make yourselves comfortable for a few years until your incomes increase a bit and you can better afford the dream home.
All good options and they just depend on you
Keep an eye on what you really want and make it happen

Good luck!