WWYD?

[Miss.September]

Thanks for all the advice!

We're not keen on renting. Once we refinance, our mortgage will be only a little higher than what rent goes for around here. I know it's about having the money in our bank account from the sale of our house, but we hated renting when we did it (over 5 years of renting). Plus I don't think we'd be looked upon too favourably with two dogs!!!!

Mum only lives 15 minutes away, in a large house. All of our furniture would fit at their place easily. I get along great with mum, she's fantastic, but 24/7 would get on both of our nerves! I think if we had a baby there, she wouldn't be able to step backwards. She was away for the first six months of DD's life, so I can imagine she'd be wanting to catch up on what she missed out on! She means well, and I hate saying a bad word about her, but I reckon after a couple of months we'd start to fight.

I guess my feeling is that the house will hold it's value. There is a house in the same street as us, exact same house, slightly larger block, but with a basic backyard and fit out. It sold in a month, with no advertising, just a board out the front. And for the price that we're aiming for. The house beside us is slightly bigger, but it leaves them less backyard space. Again it sold for the asking price, in two months - and it's not finished. No front yard, gravel driveway, only a couple of flyscreens. Cupboards have fallen down inside, the solar hot water was leaking at the time of sale and it has a broken front window (not cracked glass, but the window doesn't close). It sold for $20K less than what we'd ask for here.

Financially, we would probably be better off if we went now. Sigh. We'd have our profit in the bank, car loan paid off, no debts. DH wouldn't be under so much pressure for work. We were thrown into our own business a year ago, and in 12 months of advertising, we've had maybe a dozen calls. It's been word of mouth. So the way the predictions are is scaring us both. We have no money behind us.

I know the logical thing is to just move. Just do it. But I want more of "us". It'll be two years before we're on our own again, and then two more on top of that before we move back into our own home. I don't know that I can do it. Maybe we should hold out until next year. Put it on the market early next year. I don't know. Our marriage has taken a few big belts over the past few years, and we're finally on top of it all. We're in a really good, happy place and I'm concerned that moving too early will affect it, but not making the move soon enough with make DH resent me.

[OceanPrincess]

Financially, we would probably be better off if we went now. Sigh. We'd have our profit in the bank, car loan paid off, no debts. DH wouldn't be under so much pressure for work. We were thrown into our own business a year ago, and in 12 months of advertising, we've had maybe a dozen calls. It's been word of mouth. So the way the predictions are is scaring us both. We have no money behind us.

I know the logical thing is to just move. Just do it. But I want more of "us". It'll be two years before we're on our own again, and then two more on top of that before we move back into our own home. I don't know that I can do it. Maybe we should hold out until next year. Put it on the market early next year. I don't know. Our marriage has taken a few big belts over the past few years, and we're finally on top of it all. We're in a really good, happy place and I'm concerned that moving too early will affect it, but not making the move soon enough with make DH resent me.

There's the two most important points I think.

Finances are one thing... but your relationship is another.

Can you wait til the start of 2012? Its not the best time to sell anyway - better to sell when the weather is a bit more predictably nice on the weekends. Tell your DH you want a bit more time and revisit the idea in 6mths?

ETA: I hear you on the renting thing. I hated renting too.

[Miss E]

ETA: I hear you on the renting thing. I hated renting too.

I used to think like this, rent is dead money ya de da etc etc... But seriously, if you're only looking at doing it for a couple of years I think it is a different story. After all the interest which you pay on your mortgage is pretty much the same as rent.

If you can rent something for a similar amount to what you're paying in interest and save the difference in what your mortgage payment is/was, then chances are you will be in the same position, if not better off, than you would be if you stuck with your mortgage.

This is because if you invest your money from the sale of your property in a term deposit, or even a high interest bank account, you should be able to get at least 6%. Yes you do pay tax on that, so let say you're earning 4% a year after tax. With the Melbourne property market in the shape it's in right now, you're unlikely to get 4% growth.

JMO

[Miss.September]

Thanks again for the advice. Writing it all out helps a lot.

I had a brief chat with DH today, and suggested we put the house on the market this time next year. It brings the sale forward by 12 months. Our front garden looks great in early spring, everything comes out in flower, looks pretty and inviting (well, I think so anyway!!!!). I think that if we allow up to six months to sell, then try and go for a long settlement, then that might work for us. We'll see what he has to say, but I'm hoping we can reach a compromise. I don't think it's going to be easy for me, whenever it is we sell. I know this isn't the house for us, but we've worked really hard to get it finished. Lots of blood, sweat and tears here. I guess I'll feel better too when we get our block of land. Then I'll actually know where we're going to be, where our future is. It's hard to commit to selling the house when I don't know where we're going to end up.

[OceanPrincess]

I guess I'll feel better too when we get our block of land. Then I'll actually know where we're going to be, where our future is. It's hard to commit to selling the house when I don't know where we're going to end up.

I would find that really tough too! Are you going to be looking around the same area you are now?

Sounds like a good compromise. And a long settlement will help too.

[Miss.September]

We think we're going to end up a bit further out. Ideally like a few acres if we can find it, but the minimum we're looking for at the moment is one acre. I grew up on 18 acres, DH grew up on 5 acres, so living in a surburban shoe box is driving us a little bit insane!

[surprised]

Hi hun,

I don't know much about property, but have you looked into the different tax implications of what your options are? Especially if you put the profits of a sale in the bank rather than rolling over into a new loan.

Also, if you are holding the land for a really long time before you start to build, will that mean you pay 2 mortgages for longer (or 1 mortgage on 2 properties)?

Also, this is totally not a criticism, but I can't help but wonder if your new house will give you the happiness you're looking for? Are you just chasing what you think will make your happy, give you the perfect family life, but when you get it you realise it's not enough? You've just build what is most likely a beautiful house, but it's not satisfying you. I'd hate to see you make the same "mistake" (in inverted commas as I don't know the full story and could be way off track!). Like I said, not a criticism, but I know sometimes I can fall into this trap.

HTH xoxox