Think My Where To Live Dilemma Is Solved!

[AliB]

Hi Fionas

You've probably considered this already, but given budgetary constraints coupled with uncertainty about your needs within the next couple of years, I'd be renting a house and renting yours out. (In fact that's exactly what DP and I will be doing).

Why it makes sense for us (and may also for you):
- we've only owned our house for 2.5 years and don't want to lose out on buying and selling costs just because our needs have changed
- there's heaps less stress associated with finding a rental at the appropriate time, compared to buying and selling property.
- our existing home becomes a rental property and therefore interest, expenses etc are tax deductible - the anticipated tax refund can go toward renting a better place
- by spending a bit more than we're renting our place out for, we can afford a better / bigger house or a house in a better area
- we have ultimate flexibility depending on whether I end up working from home, or go back to work, or DP changes jobs etc... we can shift again if necessary and don't feel tied in for another 5-10 years.
- we don't lose our place on the property ladder!

Good luck with your decision.

[fionas]

We considered extending here and it may still be an option to build a self-contained double-storey out the back - not cheap though - $140 - 170K.

Extending up about $200K.

I think at this stage renting is probably our best bet - I'm all for it but DP still needs to be persuaded a bit.

But did all the sums the other day - not easy for an Excel neanderthal like me - so at least I've got it on paper now which kind of clears the head.

Still a bit miffed that we might not be able to buy in Fairfield.