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Which option is best - buy the dream home now or wait a few years?
Hi everyone,
I've got a conundrum and I don't know what to do!!
Currently I own my own home and have a mortgage of $120k - it's valued at $310k.
My partner and I will have paid it off in 4 years time as we are currently paying it off at $400pw. However with a new baby on the way we are finding this amount to be a bit of a struggle on one income plus working for families.
We have five children and the home we are in is only 3 bedroom. So it's a tad cramped.
So I thought we should sell and buy a bigger house....BUT it's been three months and we've had no interest and now i've found out that i've been made redundant from my job effective from April.
Therefore I thought we should remortgage our home and buy a bigger house up the road for $360k - we have 30k - kiwisaver as a deposit, as my partner and I weren't together when I brought my home he still has kiwi saver to access.
I did the math and that works out to be about $220k on each house respectively. It would mean remortgaging my house and chucking an extra $100k on it and extending the mortgage for 30 years.
We could rent out my home and rent would cover all payments i.e. mortgage and insurances.
Our new bigger home would be a 30 year mortgage too and so our repayments would come down to approx $260pw instead of our current $400. But we won't be mortgage free in 4 years - it'll change to 30.
NOW the other option i'm thinking of doing is this...
Stay cramped where we are for four years.....and be mortgage free at the end of it and purchase a cheaper 3 bedroom property down the road as an investment property instead for $240k with a $30k deposit. In four years time when we are mortgage free - then consider remortgaging across both properties and buying a third larger bigger house - although prices may have esculated by then? Jut don't know. This means we will own three homes instead of two and will have a big more equity.
IF YOU WERE IN MY SHOES - WHAT WOULD YOU DO?? IM SOOO CONFUSED
I've got a conundrum and I don't know what to do!!
Currently I own my own home and have a mortgage of $120k - it's valued at $310k.
My partner and I will have paid it off in 4 years time as we are currently paying it off at $400pw. However with a new baby on the way we are finding this amount to be a bit of a struggle on one income plus working for families.
We have five children and the home we are in is only 3 bedroom. So it's a tad cramped.
So I thought we should sell and buy a bigger house....BUT it's been three months and we've had no interest and now i've found out that i've been made redundant from my job effective from April.
Therefore I thought we should remortgage our home and buy a bigger house up the road for $360k - we have 30k - kiwisaver as a deposit, as my partner and I weren't together when I brought my home he still has kiwi saver to access.
I did the math and that works out to be about $220k on each house respectively. It would mean remortgaging my house and chucking an extra $100k on it and extending the mortgage for 30 years.
We could rent out my home and rent would cover all payments i.e. mortgage and insurances.
Our new bigger home would be a 30 year mortgage too and so our repayments would come down to approx $260pw instead of our current $400. But we won't be mortgage free in 4 years - it'll change to 30.
NOW the other option i'm thinking of doing is this...
Stay cramped where we are for four years.....and be mortgage free at the end of it and purchase a cheaper 3 bedroom property down the road as an investment property instead for $240k with a $30k deposit. In four years time when we are mortgage free - then consider remortgaging across both properties and buying a third larger bigger house - although prices may have esculated by then? Jut don't know. This means we will own three homes instead of two and will have a big more equity.
IF YOU WERE IN MY SHOES - WHAT WOULD YOU DO?? IM SOOO CONFUSED
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