buy an ip or renovate ppor

[artemis]

i'm looking at either buying an ip or renovating our house..

no more school fees so i will save close to $28,000 a year..

ppor does need an update as it's looking worse for wear..
am 42 and feel though that if i don't start looking at an ip now, i might miss the boat..

thoughts please..

 

[spludgey]

How much equity do you have in your PPOR?

You might possibly even be able to do both, if you renovate your PPOR first and then borrow against the increased equity due to the renovations.

From an investment point of view though, it would probably be better to not renovate your PPOR. The money you spend on any renovations isn't going to give you any return, while an IP will.

 

[Aaron_C]

Renovating the PPOR is fine but just make sure you don't overcapitalise.

 

[tobe]

do both. You will find the shortfall you have to fund on the IP is less than the repayments you need to make to cover the PPOR reno's.