Sell or hold?
Bought my house in mid 2021 (central Auckland)
$1.25M with a 10% deposit. 1950s 3 bed 1 bath house on 500sqm so I’ve put in another $50k in repairs since. Been paying penalty interest the whole way through too. Not interest only - paying principal and interest every month.
Today it’s probably worth around $1M, and my loan balance is about $1.03M. If I sell, I basically lose everything I’ve put in and interest all for nothing. Potentially owe money to the bank too.
There will now be huge development going up right next door (next door is a run down house with a huge section of flat subdivisible land, isn’t sold yet but will be) and a few other developments happening further down the street too.
Combined household income is just over $400k, but the mortgage is $6,500/month, and with two kids and everyday expenses we’re barely able to save anything. (Please note I was on maternity over the last few years so this income only started last year, we have 20k in savings so far). The 50k repairs was paid all in cash too.
So I’m stuck: do I sell now and eat the loss, freeing up cash flow to save and buy something we actually desire? Or do I hold despite the upcoming development right next to me and ride it out?