So, I've got a slightly different slant to the usual "Gen Y can't save fast enough for a house" problem.
That's three relatives or friends I've spoken to now in this predicament: under 30, renting, small cf neutral IP unit of around $200k. Married/engaged, wants to buy a PPOR $350-400k. Can't afford the deposit. Not very much equity in the unit.
The question they're wrestling with is: Do they sell the unit and exit the IP market entirely (turning their PPOR into their investment vehicle), or hang onto it and keep saving, trying to catch up with the market?
I know it's subjective and I'm struggling to stay balanced without being totally non-committal. My general thought is, "if you can save up the deposit in 18 months do that, otherwise sell the IP". So out of interest what would you do?
That's three relatives or friends I've spoken to now in this predicament: under 30, renting, small cf neutral IP unit of around $200k. Married/engaged, wants to buy a PPOR $350-400k. Can't afford the deposit. Not very much equity in the unit.
The question they're wrestling with is: Do they sell the unit and exit the IP market entirely (turning their PPOR into their investment vehicle), or hang onto it and keep saving, trying to catch up with the market?
I know it's subjective and I'm struggling to stay balanced without being totally non-committal. My general thought is, "if you can save up the deposit in 18 months do that, otherwise sell the IP". So out of interest what would you do?