Living in IP, sell PPOR or long-term hold?
Hello! I'm looking to get some wisdom regarding my current situation:
My partner and I previously lived in a South Brisbane (PPOR - next to the convention centre) 2b2b1c. The property has no debt and is worth ~950k-1m.
We bought a townhouse in the Corinda/Sherwood (IP) area in September last year for ~1.25m, with a loan amount of ~1m (5.55% variable). We have a further ~320k in the offset.
About us: ~85k & 65k pre-tax (no chance of any major increase soon), one toddler, no debt outside of the above loan, no real savings outside of the offset.
The way we see it is we have two options:
Sell PPOR and dump into the offset. Use the surplus cash for a deposit to buy a 2b2b1c IP in the Brisbane State High School catchment area.
Rent out South Brisbane, eat the interest on the townhouse, and pay down the new PPOR as aggressively as possible relative to our income/expenses. Estimated income for SB is ~$850 p/w.
Most I've spoken to in person has suggested that if we can, we should hold South Brisbane. I suppose we could trial renting it out for a year, and if it's too uncomfortable financially, we can look at selling then?
Are there any other options I've missed?
Appreciate any insight/advice/knowledge!