Hi All,
I have learnt a lot from SS forums. It has given me motivation and will to build a portfolio:
Current status: Brought a PPOR in 2008 for 285K (first home buyer, no stamp duty, gov grant covered it), currently valued by bank at 340K
Got 1 more IP 3 months back (after lot of research, inspections, etc) for 335K and stamp duty of approx 13K so in all 350 in total. Currently rented for 300 p/w and main objective was to get Capital growth and service the shortfall.
However my strategy has back fired due to markets not moving, and in 3 months i can see discounting of 3-4% happening in that price bracket (note its a entry level price bracket, still correction is taking place).
I have borrwoed 100% of finance to maximise negative gearing hence I am out of pocket each month by approx 980$ and IP deposit funds have been sitting in offset acct.
This has led me to think:
-Whether I shld sell my PPOR and move to IP and covert it as PPOR
-Rent my PPOR because it would be CF neutral/or may be shortfall of 200 pm
This was my first exp with IP investment and I really dont want to throw it away because its taken a long to get into the mindset of an investor.
Lot of friends/family members are advicing me to sell it because its not going up in value , that was main purpose of purchase.
Any ideas/opinions /feedback of how I can imporve my current situation would be appreciated. I want to focus more on how I can handle it rather than dispose it.
Regards,
I have learnt a lot from SS forums. It has given me motivation and will to build a portfolio:
Current status: Brought a PPOR in 2008 for 285K (first home buyer, no stamp duty, gov grant covered it), currently valued by bank at 340K
Got 1 more IP 3 months back (after lot of research, inspections, etc) for 335K and stamp duty of approx 13K so in all 350 in total. Currently rented for 300 p/w and main objective was to get Capital growth and service the shortfall.
However my strategy has back fired due to markets not moving, and in 3 months i can see discounting of 3-4% happening in that price bracket (note its a entry level price bracket, still correction is taking place).
I have borrwoed 100% of finance to maximise negative gearing hence I am out of pocket each month by approx 980$ and IP deposit funds have been sitting in offset acct.
This has led me to think:
-Whether I shld sell my PPOR and move to IP and covert it as PPOR
-Rent my PPOR because it would be CF neutral/or may be shortfall of 200 pm
This was my first exp with IP investment and I really dont want to throw it away because its taken a long to get into the mindset of an investor.
Lot of friends/family members are advicing me to sell it because its not going up in value , that was main purpose of purchase.
Any ideas/opinions /feedback of how I can imporve my current situation would be appreciated. I want to focus more on how I can handle it rather than dispose it.
Regards,