Rentvest or downsize?
Hi,
I’m seeking some advice about my property.
I own a home just outside of Brisbane- I bought my ex out after a property settlement about one year ago. My life plans and lifestyle have also changed a lot too as a result.
I have a big mortgage (about $610K) which is bigger than I would comfortably agree to in general but the separation was a really stressful time so it was a bit of a panic agreement.
Anyway, it’s one year in and I cannot afford to stay in the house on my own and rent out some of the house to family. I don’t feel I can keep house sharing, it’s really frustrating and starting to impact my MH.
The options I am considering are to either:
- Downsize and purchase a small apartment closer to the city which would be affordable on my own and let me enjoy my life a bit more
- Rentvest and again move into an apartment on my own.
My worry about rent vesting is that because I have such a large mortgage, the approximate rental income will fall about $150 short of the mortgage repayments every week.
The good news is that the house has increased in value like crazy and I have about $300K of equity.
Any advice would be amazing- long term financial decisions aren’t my greatest strength tbh.