Hi all, this query is not necessarily strictly property investing but it would be great if some of you seasoned investors are able to put your thoughts to my query.
Scenario is that my friend is selling a house due to separation.
Her house is going to auction in 2 weeks.
The expected amount she will receive from this is $200k.
Intent is that she and her partner would like to purchase a home that can accommodate both their sets of children. The view is that there will be a need to purchase a 4 bedroom home.
Due to constraints outside of control there will be a delay of 6 to 8mths before they could combine income to purchase a new home jointly.
My friend is worried about waiting till they can both buy a home jointly due to the money wasted on rent in the interim and also the potential raise of property prices.
From what I gather, with a $200k deposit she could afford on her own a $550K property (ie $350K mortgage). This would effectively be a 2 bedroom unit in Howick where she would like to purchase.
A 4 brdm home is about $850k which could be afforded when both are together.
So is it a more sensible strategy to buy a smaller home now to keep in the market? Or wait and buy the right house in 6 to 8 mths time.
One idea would be to hold onto the first purchase as a rental and then use the equity in it to buy a second bigger family home?. Challenge will be achieving a 20% deposit.
Be great if folks could lend their brains to this situation and hopefully come up with some smarts about how something like this could be approached?
Maybe buy a real do up 2 bedroom and sell for gains? Or extend?
Not sure if there is enough info to work off but please do ask and I will try get info to fill the gaps.
Thank you
L
Scenario is that my friend is selling a house due to separation.
Her house is going to auction in 2 weeks.
The expected amount she will receive from this is $200k.
Intent is that she and her partner would like to purchase a home that can accommodate both their sets of children. The view is that there will be a need to purchase a 4 bedroom home.
Due to constraints outside of control there will be a delay of 6 to 8mths before they could combine income to purchase a new home jointly.
My friend is worried about waiting till they can both buy a home jointly due to the money wasted on rent in the interim and also the potential raise of property prices.
From what I gather, with a $200k deposit she could afford on her own a $550K property (ie $350K mortgage). This would effectively be a 2 bedroom unit in Howick where she would like to purchase.
A 4 brdm home is about $850k which could be afforded when both are together.
So is it a more sensible strategy to buy a smaller home now to keep in the market? Or wait and buy the right house in 6 to 8 mths time.
One idea would be to hold onto the first purchase as a rental and then use the equity in it to buy a second bigger family home?. Challenge will be achieving a 20% deposit.
Be great if folks could lend their brains to this situation and hopefully come up with some smarts about how something like this could be approached?
Maybe buy a real do up 2 bedroom and sell for gains? Or extend?
Not sure if there is enough info to work off but please do ask and I will try get info to fill the gaps.
Thank you
L
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