Hi everyone! I’ve been thinking about moving to Australia because I feel a bit priced out of my current place. My weekly budget often leaves me with around -20 to +50 dollars after paying for essentials. I own about 80 percent of my home and I’m unsure if I should sell it or rent it out.
If I rented it out, I’d be left with around $160 a week after expenses, which adds up to about $8.3K a year.
My biggest worry is that if I sell, I might struggle to get another home loan later since my potential income is just a bit above minimum wage. Even with 80 percent ownership, when I recently extended my mortgage, it was only approved because I’ve never missed a payment.
My house is an entry-level, smaller home—it’s in great shape but built in the 1940s. I just spent all my money fixing it up and now it’s in the best condition possible. New roof, kitchen, bathroom, walls and everything.
I feel uncertain about what to do. If I sell, the money I get could earn more through interest or safer investments. However, if I exit the property market now, I might not return.
I’m considering getting a property manager, but I’m really anxious that if I leave, I’ll come back after a couple of years to find it damaged or wrecked.
What do you think I should do? I appreciate any ideas or insights available
I’d suggest you hold onto it for at least a couple of years while working on increasing your income. Be sure to get insurance for renting it out.
Also, temper your expectations about Australia. It might not be the paradise you’ve heard about, and you might not find it suits you as well as you think. And definitely avoid moving to NSW unless you have a solid six-figure income lined up.
If it were me, I’d definitely keep the property. If it’s 80% paid off and you’ve owned it for how long? Renting it out would be a great move while you work on your plans.
I’m a real estate agent and kept my house when I moved to Australia. When we returned, I really loved that house. My biggest regret was selling it (we moved to Auckland). Sure, we used our equity to buy in Auckland, but we could have hung onto both. It was tough sometimes but we just borrowed to renovate the Auckland house. I reflect now and wish I hadn’t made that choice. Happy to sell it for you if you’re in Auckland.
@Leif
Oh, I understand. Using your equity for another property sounds like a great plan. I wish I had that insight sooner. Sorry to hear about your regrets—I really like my home too. It was close to being condemned when I got it, and I learned a lot fixing it up.
@Macon
We came back from Australia. We did buy there (lost money), but it was fun. Afterward, we moved to Wellington and found it too cold, so we went to Auckland, used our equity to improve our current home.
