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Petrified to move forward

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Karyn Batchelor | 26 Sep 2014, 08:37 AM Agree 0
My husband and I have two houses. One house I purchased to live just before we met. It was built in the 80's and now requires some work, like a new kitchen and bathroom spruce up. Currently I am not working as I am looking after our two children.
The house we are currently living in has a small mortgage as we have focused all our efforts in removing this debt. I have been devouring information on property for a number of years and want to move forward with the smallest amout of risk possible (my husband has no tolerence for debt) and I got burned in the Henry Kaye saga a number of years ago. I believe that education is the key to eliminating my fears of losing what we have worked so hard to gain and I am stuck in a holding pattern. We dont have spare money to spend, although I think its money well spent to save guard the future...I am not sure what to do.

Do I sell my house and start fresh with specific criteria? Or do I renovate and pull the equity out and buy another?
  • CJ | 01 Oct 2014, 10:12 PM Agree 1
    Money invested in rejuvenating either of the properties you own will be well spent. If it's the house you live in you will be adding to the equity, or if is it the investment property you will be adding to the equity and potentially increasing the rent, plus giving yourself a possible claim for depreciation in your tax returns. All of these reasons will make you a low risk borrower for a future purchase, whether you do that sooner or later is up to you. If you sell your house, all of the costs will cause a net loss; agent's fees, government duties, removals costs, electricity connection charges etc. etc. etc. Better to stay where you are, renovate and invest elsewhere.
  • alexiscooper5 | 09 Jan 2015, 06:17 PM Agree 0
    Its a very nice success story. I enjoyed it a lot.
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