ASK NOEL

I earn $80,000 in a good job and love the location of where I live but not the house itself, which is worth $245,000. My home-loan repayment is $2000 a month and I pay $995 a month in child support. I have $30,000 in shares. The house is on a good size block. I'd like to knock it down and rebuild but I'm not sure I can afford to. One option is to build a brick shed on the site to live in, knock down the house and rebuild when I can afford it. Or I could sell the house, move into an apartment and save $600 a month. I could think about building a house later. Any suggestions?

Based on the information supplied, your easiest way out would be to sell the house as is and buy something in the same area. This would allow you to stay in the location you like while upgrading to a better home.

You've mentioned investment bonds before but I'm having difficulty finding information on them. I understand they are a savings mechanism with tax advantages after eight to 10 years. They don't appear to be available from the big four banks. Could you tell me who provides these products?

Almost every investment adviser will be able to offer you a range of investment bonds and these will include the ones offered by the wealth-management arms of the four big banks. Bear in mind that these are a tax-paid investment, like superannuation, and you need to choose an asset mix that is suitable for your goals and risk profile.

Noel Whittaker is a director of Whittaker Macnaught. Advice is general and readers should seek their own professional advice. Contact noel.whittaker@whittaker macnaught.com.au.