Upsizing with an impending investment property.

[Mum2twoBoys]

Hi,
So a little back story, we are currently very close to hand over of our off the plan investment property. We will have a $288,000 mortgage due to this. It is our first investment property so we're a bit nervous regarding incomings and outgoings.

We currently live in a 3 bedroom house that is fully paid off. But after our deposit for the investment property comes out of our savings we will be left with like $30-40k. I am currently on maternity leave with my 3 mo baby, with no intention of returning to work full time.

We are looking at purchasing a larger house with a bigger block as our house is getting too small for all our and the kids stuff, plus all my wahm business stuff.

We're not sure whether we'd be able to afford having a mortgage again. And whether we'd have to sell our house ASAP to even be able to afford it. Dh would like to be able to move out and do it up a bit before we sold.

Just wondering whether other people have done it or whether it's feasable. I hate the fact we don't know our financial situation due to the new unfinished investment property.

[Miss.September]

I'd talk to an advisor about your particular circumstances. Banks seem to be a bit tricky at the moment so you might be better off waiting until you sell the investment (or have tenants in it). I know of three desperate cases where the bank has knocked people back on home loans (myself included) for no apparent reason. We have 20% deposit and could smash the repayments. Friends sold their house and business and have no outgoings with a lot of money in the bank - they got knocked back. Third case the loan was approved and then knocked back two days before settlement. So given your circumstances are a bit different, it'd pay to get some advice from the bank you plan to go with.