OK, so our finance will be sorted one way or another. Now we have a choice of buying in Adelaide and renting it out or, buying a PPOR in Port Augusta. At the moment our rent in Port Augusta in highly subsidised due to hubby's employment. If we were to buy here we have to live in it - you can't have nice cheap rent and own an IP within 40km - government rules!
So the obvious answer is to buy an IP in Adelaide and try to do basic reno and then rent it out whilst taking advantage of the cheap rent here in Port Augusta.
BUT... as this is our first purchase, and as we are reno novices, we'd love to buy here, live in the proeprty and take our time with the reno. We will then turn it into an IP when we move back to the city - probably 12 months away.
Would we be crazy to do this? I think it would be less stress for our first purchase...we could take our time and not have to worry about managing an IP and tenants so soon.
I know you should only look at the figures and not get emotionally involved. When we look at the figures, cash flow for us is best with an Adelaide IP purchase...plus capital appreciation should be better in a capital city. But the learning curve will not be as steep if we buy a PPOR here in Port Augusta and we will be able to take out time with the reno (only paint, floor, maybe new kitchen etc.. but we are novices remember).
What do you think we should do? My head says Adelaide but my heart says Port Augusta.
So the obvious answer is to buy an IP in Adelaide and try to do basic reno and then rent it out whilst taking advantage of the cheap rent here in Port Augusta.
BUT... as this is our first purchase, and as we are reno novices, we'd love to buy here, live in the proeprty and take our time with the reno. We will then turn it into an IP when we move back to the city - probably 12 months away.
Would we be crazy to do this? I think it would be less stress for our first purchase...we could take our time and not have to worry about managing an IP and tenants so soon.
I know you should only look at the figures and not get emotionally involved. When we look at the figures, cash flow for us is best with an Adelaide IP purchase...plus capital appreciation should be better in a capital city. But the learning curve will not be as steep if we buy a PPOR here in Port Augusta and we will be able to take out time with the reno (only paint, floor, maybe new kitchen etc.. but we are novices remember).
What do you think we should do? My head says Adelaide but my heart says Port Augusta.