I've read some comments made my people who suggest it's cheaper to rent then to own a PPOR. I really don't understand this way of thinking.
Rent continuously goes up and up (never down over the long term). IE in 10 yrs time your rent may be double what you're paying now for the same house, while on the other hand your PPOR payments tend to stay the same. Even if IR go up in 10 yrs it still wouldn't double your repayments because by then you've repaid a fair chunk off so there would be less interest to pay.
I understand that if you're just starting out, then building up an IP portfolio first can help you get your own home quicker or get a bigger/ better one, but still its worth having a PPOR at some stage.
Rent continuously goes up and up (never down over the long term). IE in 10 yrs time your rent may be double what you're paying now for the same house, while on the other hand your PPOR payments tend to stay the same. Even if IR go up in 10 yrs it still wouldn't double your repayments because by then you've repaid a fair chunk off so there would be less interest to pay.
I understand that if you're just starting out, then building up an IP portfolio first can help you get your own home quicker or get a bigger/ better one, but still its worth having a PPOR at some stage.