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In a messed up situation


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Good morning all! 

 

I've come here hoping to get a bit of advice as a newbie to property investment but first need to tie up my own situation, so I'll jump right in.

 

In 2014 I purchased our first home (a cottage) 2 bedroom.

In 2015 my wife and I found out we were having a baby. Towards end of pregnancy we moved in with parents as wife needed extra help while I worked away at sea. We rented our property out.

2016 baby is born, I decided I need to progress my career and saved for further education within my field. I saved and passed all exams.

 

2017 2nd baby born. We are now in rented accommodation and still renting our property out.

 

2018 I find myself in a situation I'm not sure how to get out of, I own a house but am renting and this is where I'm hoping to get some advice. I see 3 options:

1) Sell the house use profit to buy bigger house.-does not further my property investment goals

2) release equity from house and use that to buy next house while keep renting to tenants.

3) move back into very small cottage for a year on an interest only mortgage, save up, then buy next property. And find tenants for small cottage.

 

Apologies for long post, Any advice is greatly appreciated 

 

Kind regards

 

Stirling

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Hi Stirling

 

Forgive me for saying this, but the thoughts seem to be a little cluttered here BUT fear not, they can become de-cluttered!

 

The reason why the thoughts at least appear to be cluttered is probably for two reasons: 1) the options outlined are very tactical (buy or rent, save or sell, etc.) and 2) there seems to be a lack of alignment to your long-term goals and vision, at least based on what you shared so far.

 

So, I always suggest that new or early stage property investors begin with the end in mind (as Covey says), which is with their purpose and goals, which is wrapped into a concept I like to call your 'Someday Goal'. Once you know clearly what this is, the tactical and even strategic decisions become more straightforward, as you will be basing your decisions around these. I suggest your wife is also a part of this thought-process as well, if not already.

 

The attached articles might help you with that and you can always subscribe to my YPN articles by emailing into to our website...if you want to that is! Read them in order though (97 then 98).

 

Once you know where you are heading, decisions or choices such as you suggest here will become much clearer...the right choice depends on where you want to get to. by when and in what sort of way. The right choice might not be an easy one, but it should still be the best one to take you towards your overall Someday Goal. Too much to say about all this in a single post, so I hope the shares give you some insights.

 

Best

Richard

 

 

RichardBrown_YPN98.pdf

RichardBrown_YPN97.pdf

Richard W J Brown a.k.a. The Property Voice

Property Investment Strategist

10%+ ROI property deals every week: check out PROPERTY DEAL TIPS
Amazon best-selling author Property Investor Toolkit & #PropTech, YPN Magazine columnist & PODCAST host

Web & Blog: The Property Voice | Curated property news & insights feed

Facebook Page | TwitterLinked In

Let's connect...mention The Property Hub :)

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Hello Richard,

 

Thank you very much for the response and for the attached articles, they were really well laid out and informative! 

I have written myself a set of goals both long term and short term but you are indeed correct mentioning my wife having an input on the decision making which we currently clash on :) I'm hoping some written down numbers will have more an impact than words.

Thank you for streamlining my thought process.

 

Kind regards

 

Stirling

 

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Hi Stirling

 

Oops...I can well imagine the sort of conversation taking place there!

 

Open questions tend to help more than directed pointers towards a pre-conceived end-game I have found through experience...

 

Where would you like us to be in 10 years' time? What sort of plans would you like to put in place for the kid's future? In an ideal world, what kind of work and lifestyle would you want? In our case, the answers were something along the lines of: home in two countries, extensive travel and a choice of whether to work or not; we got the kids through Uni and gave them a good start in life...now let them fly their own path and...flexible 'project or portfolio-type of work', my wife wants to be a non-exec director and I like property projects ad sharing knowledge.

 

Also, understanding attitude to risk, go & no-go areas in terms of what you will do, how much time, money, effort, etc. to throw at this.

 

In our case, our risk profile is different, so we had to stretch a little to meet somewhere in the middle, investing in areas with an established legal system and not where our assets could be at risk, a lot of the money, but not without having a contingency / rainy day fund, I do the investing and wealth creation, she does the conventional career stuff, that sort of thing.

 

These are just some of the steps you could take to 'seek first to understand...' ;)

 

Aligning our goals with our partner is essential, but also challenging...I didn't say easy did I?

 

All the best,

Richard

Richard W J Brown a.k.a. The Property Voice

Property Investment Strategist

10%+ ROI property deals every week: check out PROPERTY DEAL TIPS
Amazon best-selling author Property Investor Toolkit & #PropTech, YPN Magazine columnist & PODCAST host

Web & Blog: The Property Voice | Curated property news & insights feed

Facebook Page | TwitterLinked In

Let's connect...mention The Property Hub :)

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Good afternoon Richard,

 

Thank you again for the advice and information, I shall attempt to apply this to my situation. Haha definitely not easy but I look forward to the challenge, patience is not my virtue.

 

I hope to tell you some good news and that I am on my way to investing within the next year!

 

Kind regards

 

Stirling

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