To sell or not to sell (the house)

[HDT_aero]

If you have read the job for mum thread youll know im in a tight situation atm

and while thinking about it I have thaught several times seriously about selling my beloved home to invest in a buisiness.

If i sold the house id have just under $50k to start up a buisiness with...

i know id prolly need a loan on top of that but what i want to know is

Is this a smart idea?
Is it a risky idea?
If i did go down this path what kind of buisiness/franchise should i be going for? (obvioulsy needs to bring in enough cash to support my family, buisness loan and pay rent

and if you were in my situation what would you do?

If you read this thread you will get a better idea of my situation aswell

http://forums.justcommodores.com.au/...d=1#post200647

[Infus10n]

It would be a risky idea if you put your money towards the wrong business. It is not easy running your own business and if your short for cash atm i would not bother as you dont make profit straight away, you usually loose money to begin with or break even.

Invest in your house, wait for the value of it to grow and then in a couple of years sell it for a profit.

[michaelw]

Yea mate you have enough stress at the moment. I would try and keep hold of the house and earn some dollars still working for the man.

Obviously I don't know your full situation but you seem to have the sole gaurenteed income at the moment.

How about while you are working do some night/corospondant studies on small business management? So that when things get better you can dive in will all the facts. Also talk to your local business council they might have some sort of mentor program to help people who are thinking about it.

But my advice to you is wait for them moment but study up so you can go into business later with your eyes wide open.

Mike

[gopher]

where would you then live & how would you pay the rent?
if you really want to buy a business why not explore the options of borrowing against the equity in your house?
that way you could get your business & keep the house.

i wouldn't sell the house to buy the business

[Lish]

personally I think you should hold onto your house and hold in there - something will come up for your g/f. I started doing cleaning after hours when my first baby was only 2 months old and it helped. A business or franchise is going to take about 12-24months before you get a good enough return from it - so that 12 months is going to be a bigger struggle than what you are going through at the moment. Unless its a thriving business with a strong regular income then you are going to be finding it hard to build the business, pay overheads, pay the loan on it etcetc. To make money you have to spend money so any money you make will go straight back into the business for the first 12-24months. Something like that will only work if you have a 2nd income to fall back onto.
Your intentions are brilliant, but in reality a business is a huge financial commitment - bigger than your house repayments.
Good Luck to you both....there is always a light at the end of the tunnel

Del

[minux]

I wouldnt sell a house until i had developed a serious business plan, it would be crazy to not do this first