Australian Money Forum

[koby06]

Hopefully I will sell my house and now I not too sure whether to buy a new one (obviously cheaper to lower the mortgage a bit) or wait and rent as I'm worried about the economic climate. Having our own business, the first six months of this year have been hell, using our credit cards to stay afloat etc. Should we rent just to see what pans out by the end of the year...the forcast of the ecomony seems so dim even maybe ending in a recession - I"m far from an expert that's why Im asking anybody's opionion who may want to answer. I don't now whether we should hang on to money we will have left incase everything goes haywire or still get into a mortgage with enough backup for about 12 months worth of mortgage repayments. Any thoughts....I'm feel so out of my league with this financial stuff...thanking in advance. Koby

[vilemerchant]

Hopefully I will sell my house and now I not too sure whether to buy a new one (obviously cheaper to lower the mortgage a bit) or wait and rent as I'm worried about the economic climate. Having our own business, the first six months of this year have been hell, using our credit cards to stay afloat etc. Should we rent just to see what pans out by the end of the year...the forcast of the ecomony seems so dim even maybe ending in a recession - I"m far from an expert that's why Im asking anybody's opionion who may want to answer. I don't now whether we should hang on to money we will have left incase everything goes haywire or still get into a mortgage with enough backup for about 12 months worth of mortgage repayments. Any thoughts....I'm feel so out of my league with this financial stuff...thanking in advance. Koby

I guess it depends on what situation buying another house would leave you in. If it'll leave you with no backup money in the bank and relying on credit cards, but renting would mean you're left with a chunk of change in the bank maybe you should stick with that for 12 months until the situation with your business is more clear. Everyone should try to have an emergency cushion of money in the bank, but for a business owner it's absolutely crucial.

[geoffmerritt]

Having our own business, the first six months of this year have been hell, using our credit cards to stay afloat etc.

Thinking of selling your house, using credit cards to stay afloat.... maybe selling or getting out of your business may be a better prospect than selling your house.

Not knowing how long you have been in business and what type of business you are in, it is hard to suggest what may be the best way to go. Having lost a house years ago through staying in a business longer than I should have, hoping that business may improve. Once you have used you capital to keep going it takes a long time to get back to where you were.

For me I eventually went bankrupt, studied accounting and it took 8 years to be in the position to purchase a house again.... that was some years ago now and I am in a better position than I would have ever been had I continued with the business.

Hope you find your path

[koby06]

thanks guys for your response, we will probably rent for six months to see "what happens" and save more. We still have an investment property which almost pays for itself so that's something... Do appreciate all your advice. Cheers, Dayle