1. sell and move into our investment property (owned 105% by the...

1. sell and move into our investment property (owned 105% by the bank) on Sydney fringe. Pay off both mortgages!

Maybe, but then what will you live OFF? You only have 150k in Super and the pension is next to nothing. You might live till you're 90.... I would not do this.



2. sell, Retire. Buy a cheap house in the country, travel

I'm guessing with this option you will travel with some of the surplus funds. What will you do with the rest of it? Have you ACTUALLY worked out how much money you believe you will need to retire for the REST OF YOUR LIFE (remember you could live a LONG time) comfortably? The last thing you want to do is be living out in the country off the pension with no cash to pay for petrol to see your friends and family.

3. rent this place out + move into investment property -its quite liveable just needs new garage. My husband would hate the added time in the traffic tho.

Financially, how is that any different to living in your current place and renting the other out?

What you need is a passive income when you are older. How many years till the investment unit is paid off (assuming it is on repayment?).

I would probably stick with the asset making you the most money (which is the house you live in). It has the advantages of catering for family and being near your friends. Try and pay it down. Would it get good rent? At some point in the future (when you are very old) could you rent it out and rent a cheaper place and live off the difference?

I know it sounds like a lot of money, but I agree with the other poster that it can be spent very quickly.

If you are feeling comfortable with your equity gain perhaps you could have a 'mini retirement' with your long service leave. Are you really ready to retire forever already?

Lots of questions. Not many answers. Sorry.