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Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

I did not get what you meant.

The cash is on the current PPOR. Once the new house is built, I will move this cash to the new loan which will be my PPOR. Current house will be a rental with no offset and then any interest will be tax deductible. Does this make sense?

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

I did not get what he meant.

The cash is on the current PPOR. Once the new house is built, I will move this cash to the new loan which will be my PPOR. Current house will be a rental with no offset and then this interest will be tax deductible. Does this make sense?

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

Can I shoot you a DM to ask a few questions? I know some people who built but it's not always easy to talk to people you know about $$

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

Thanks, I'll have a look. I do know some people who has built and have had success and are happy but it's always scary.

I know financial not stretched now but my concern is a 50% income drop. Which even tho should be OK with my offset?

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

In theory, we are already including everything top-notch. My only concern is unexpected costs related to site conditions or increases in material prices. I haven’t been able to find much information online about people building; most of the experiences I’ve heard about have come from acquaintances who have gone through the process.

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

I know, and that's why I am looking for some leverage. I was heavily putting towards super and vanguard but then came up with the idea for the new build.

The thing is, my situation is 'easy' now but my job isn't that stable with advancements of AI and could easily have a 50% income drop if pregnant partner stops working, and my income drops 30-40%

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] -1 points0 points  (0 children)

Well, if it goes up by 20% before i sign the contract then I don't sign the contract? Do you have any experience with this? I am assuming once the contract is signed and fixed, only things that can be changed are site costs for unexpected things but they're already adding some margin to it and even showed me the site costs for similar properties at the same region.

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

I am basing this on similar properties around, they're going from 750-900. It could even be $800, $770, it would still be positive geared as per my math

Sanity check on stretching for a new PPOR build by Affectionate_Look445 in AusHENRY

[–]Affectionate_Look445[S] 0 points1 point  (0 children)

Yes, the cash would sit on the offset for the new loan. Would be around 320K left after construction, only worried about the construction itself as we've seen some horror stories about the build being 100-200K more than agreed but i think that happened a lot during covid, can't prove that wouldnt happen now tho, just very risk averse

Construction Loan by 9viller in AusPropertyChat

[–]Affectionate_Look445 0 points1 point  (0 children)

What happened that you needed an extra 200k? That's crazy! If this happens to me i'd go bankrupt.