WWYD?

[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

[Miss.September]

Surpised - the house we're in now was the house to get us out of the renting cycle and into the property market. We always intended it to be a stepping stone. We bought a house and land package priced well under what the bank said we could borrow, knowing that buying in stage one would make us a nice profit when the time came to sell. We've made it into a comfy home, but not one we planned to live in long term, ITMS. We know we'll be taxed on our profit that we make for however long we have it in the bank, but we should gain some interest too which will help cover the tax. We'll be sitting on the land for about a year (provided we can find something we like when we want) before we build on it. So if we're lucky enough to buy our land next year and sell next year, then there will only be a short amount of time we're paying two mortgages. Hope all that makes sense!!!!! Thanks for your reply

[surprised]

Sounds like you have all your bases covered hun!

I had a little giggle when I imagined you "sitting on the land" for a year... hope you have umbrellas! Ah it's late and I'm feeling silly!