I know this is probably a question for a financial adviser but there are a lot of switched on people here.
Would you buy 1 PPOR around the 600k mark (Aspendale gardens, Carrum, Chelsea, Chelsea Heights, Bonbeach) or would you buy 2 IP at around 340k each (thinking Frankston area). Time frame I am thinking 5 to max 10 years. The IP properties would be larger blocks around the 650-700sqm. Possibly could squeeze into the FHS zone but not at 340K each more like 400-440k.
Cash 170k
Interest only repayments currently at 5.3% with offset account
Earning 130k a year
Basically I figured 340k total cost of IP including stamp duty etc.
510k loan after using the 170k as deposit and putting it into the offset account.
$27.6k yearly interest only repayments
$33.3k rent revenue
$5.7k cash flow which would turn out to be zero after taking away rates and real estate looking after fees.
With all that keep renting myself at around $25k per year.
Or would I be better off buying my PPOR use the 170k cash towards it via offset account after paying deposit. Being able to put the 25k towards my PPOR instead of paying rent and never seeing the money again.
I guess it all depends where the CG growth will be at. Am I betting on Frankston or not I guess it boils down to.
It is not a place I would like to live myself. I walk through there daily and there is always something happening women with a smashed in face, fights breaking out, rats with wings everywhere (seagulls). But I can see some potential there in the long term not sure if 5-10 years is enough though. How long can a suburb by the bay be so much cheaper than everywhere else the catch up is bound to happen just a matter of time but how much time..
Would you buy 1 PPOR around the 600k mark (Aspendale gardens, Carrum, Chelsea, Chelsea Heights, Bonbeach) or would you buy 2 IP at around 340k each (thinking Frankston area). Time frame I am thinking 5 to max 10 years. The IP properties would be larger blocks around the 650-700sqm. Possibly could squeeze into the FHS zone but not at 340K each more like 400-440k.
Cash 170k
Interest only repayments currently at 5.3% with offset account
Earning 130k a year
Basically I figured 340k total cost of IP including stamp duty etc.
510k loan after using the 170k as deposit and putting it into the offset account.
$27.6k yearly interest only repayments
$33.3k rent revenue
$5.7k cash flow which would turn out to be zero after taking away rates and real estate looking after fees.
With all that keep renting myself at around $25k per year.
Or would I be better off buying my PPOR use the 170k cash towards it via offset account after paying deposit. Being able to put the 25k towards my PPOR instead of paying rent and never seeing the money again.
I guess it all depends where the CG growth will be at. Am I betting on Frankston or not I guess it boils down to.
It is not a place I would like to live myself. I walk through there daily and there is always something happening women with a smashed in face, fights breaking out, rats with wings everywhere (seagulls). But I can see some potential there in the long term not sure if 5-10 years is enough though. How long can a suburb by the bay be so much cheaper than everywhere else the catch up is bound to happen just a matter of time but how much time..