Q. I have fallen in love with a country property, which is my dream-place for my retirement. I am single, and intend to work for only another five years, owing to age. I earn a little over $100,000 a year. My present house is mortgage-free and worth in the low to middle $500,000s before the agent fee is deducted.
Wednesday, April 20th 2005, 9:01AM
by The Landlord
I have $130,000 in savings, including shares, and also significant art works, worth about $350,000. My family doesn’t want me to sell any of the major works.
I have recently taken out an employer-contributed superannuation, at present worth about $50,000. I do not intend this to be considered in the potential purchase of this property. The asking price of the property is about $1 million.
Am I foolish in even considering such a property, and also taking out a mortgage, at this time of life - being aware that during the time that I’m working there are disadvantages, such as the time involved and increased petrol costs driving into th centre of Auckland?
A. I reckon you can do it - if you really want to. But it’s going to take a bit of sacrifice.
The property market is a bit softer than it has been, which may affect both your buying and selling prices. Let’s say the owners of the country property accept $950,000, and you buy on condition that you can sell your house for $500,000, after commission. That leaves a $450,000 gap.
