We have a plan. It's been a solid plan for over a year. Early next year, we are looking to refinance our mortgage (which will drop our replayments by close to 50%), and purchasing some land. In 2013, we will move into my mum's house and then sell our home. We will then live at my mum's for two years while we build our dream house. We're hoping the builder will take us to lock-up and then we can finish it ourselves.
As it stands right now, today, we're looking to make $100K on our house, on what we owe on the mortgage. We bought a house and land package, in stage one of an estate in a booming Melbourne surburb. We need that 100K to be able to finish off the dream house. We'll go to the bank for finance for the land and the build to lock up.
But we're scared that the butt is going to drop out of the market, and we won't get what our house is worth at the moment. On the other hand, we're scared that we're going to jump too early, and not get more for it. There are things going on in the area that I think will help hold the value. 1km up the road is going to be Woolies, Dan Murphy's and Big W. Our estate is going to home a brand new community centre. All of this will be in the process of being built by the time we plan to sell. The house is on a small block, but opposite parklands and the house is totally finished. We've had numerous people come through and comment on it, favorably.
Although he hasn't said it, I know DH wants to go now. He is really concerned that work will dry up, and then we won't be able to either make the mortgage repayments, or for that matter, sell. We're about to go into a new area of his business that will guarantee work, but he's still very wary, and I understand that. But I'm not ready to move into mum's. I love her dearly, but I like being in my own space. I know that (should we be so lucky) when we have another baby, bonding will be more special if we're alone. Neither mum or I work, so we'd be together 24/7. We've lived together before, while we were building this house, but I was working. When we move in to their place in 2013, they're going travelling for the two years we'll be living there, giving them someone to live in their house, and giving us somewhere to live. Mum doesn't care when we move in, so there's no issue there.
So what to do? What would you do? Am I being unfair to DH? Should we just do it, guarantee the money? It'll mean it's five years before we're in our own home again.
1. Re-finance existing mortgage early-2012. Use funds from refinancing to buy land and start building. Live in current house until 2013, then move in with mum. And do what with current house - sell?
2. Move to mum's now, speeding up option 1 by 6-18mths?
OP - We won't be building on the land until at least 2014. So next year's refinance is just for our current mortgage. We're hoping to get a second loan for the land, and then just sit on the land until we want to build. So in March next year, we will refinance current house and go for pre approval for land purchase.
If we move in with mum now, we will be selling our house now, buying our land now, but still not building until 2014. The deal with mum is that we have to live there until they return home in 2015. Does that make sense?
I understand your concerns with the market at the moment. It is very worrying and nobody really knows what will happen... We've had so many years of unsustainable growth, that the only thing that one can be certain of is that it ain't going to grow much. It might crash, or it might not... You don't know.
But what about looking at another option... Could you sell your house now to secure the equity you have and rent for a year or two until you move into your Mum's place? That way you could invest your $100K and earn some interest, and possibly rent a place for less than you're paying on your mortgage so you can save more in the meantime. It also means that if your DH's work does have some ups and downs you're not locked into a mortgage and also have the security of having some cash behind you...
We did something similar earlier this year and we haven't looked back! We're renting a place for the same amount that we were paying on our mortgage, but it's much bigger and more suited to our needs. And it is so good to check your bank account each month and see your money grow!
As someone who has just spent 18months living with their parents personally I wouldn't move in with your mum if I didn't have to What kind of relationship do you have with your mum? 24/7 would probably drive me insane after a while. Also what would you do with all of your stuff, put it in storage (costs $) or is there space for it at your mum's?
I like Miss E's suggestion of selling and then renting if your DH is really worried. You still have your own space, probably paying less in rent compared to mortgage repayments so can save up for a bigger deposit on your land.
So sorry!!! I asked for clarification and then left work and got home and you know how it goes when you get home!!!! Bad friend, bad friend! Let me think over it now...
Ok so its a question of selling now and moving in with mum, or selling in... 2013 and moving in then?
I'm torn. Part of me says hold on to your property for as long as you can, because the growth I have seen in even 18mths has been pretty huge. But that is in my area - your area is different, I've watched the market at the L development down the road there and it doesn't seem to be growing as quickly.
There will probaly still be growth - but it is enough to justify staying for an extra 18mths? Hmm. The market could do anything in 18mths. Do you think you'd be able to sell now?
Is DH's work really a concern? We moved when DH had just started a new business - we managed. We had some tough periods but we scraped through.
Are you parents near to where you are now? What else would you be compromising, moving to their house?
My sister has had two babies living with our parents. I don't think they would feel like they missed out on bonding time - but I can see that mum has had to restrain herself, be very hands off, so she didn't encroach on their special family time. Could your mum do that? Or would you be tripping over each other, living in close quarters, no choice but to hang out together?
WWYD?
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What kind of relationship do you have with your mum? 24/7 would probably drive me insane after a while. Also what would you do with all of your stuff, put it in storage (costs $) or is there space for it at your mum's? 
The market could do anything in 18mths. Do you think you'd be able to sell now?
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