Hello Somersoft!
Let me introduce myself. I am a 30 year old Australia who worked in the US for the past 2 years and have recently relocated back. My wife and I are currently living with parents for the time being but looking to purchase either an IP or a PPOR in ~6 months. We have about ~200k in savings, currently unemployed but estimating to have a combined income of about ~230k in a month or two. We will eventually move out to the PPOR or rent in about 6 months time and plan to have kids in 1-2 years time.
Our medium term goal is to have about 100k in passive income in 13 years and grow this to about 200k in 26 years. Our strategy is more buy and hold as we'd like to continue focusing on our current career as the main source of income/cash flow.
With the end goal in mind, would it be wiser for our first purchase to be an IP or a PPOR? I believe the numbers work better with a IP for various reasons. We live in Sydney and so finding a PPOR that meets our requirements of being fairly close to the city and close to amenities is outrageously expensive and the mortgage we'd have would lock us down. Also we would most likely only be able to afford an apartment/unit than a house. Tax benefits also work more in favour of an IP (we're in for the long haul so I'd like to dismiss GC exemption). Would the wise members of SS agree with this? Or could it make sense to make our first purchase as our PPOR?
Thanks!
FTB
Let me introduce myself. I am a 30 year old Australia who worked in the US for the past 2 years and have recently relocated back. My wife and I are currently living with parents for the time being but looking to purchase either an IP or a PPOR in ~6 months. We have about ~200k in savings, currently unemployed but estimating to have a combined income of about ~230k in a month or two. We will eventually move out to the PPOR or rent in about 6 months time and plan to have kids in 1-2 years time.
Our medium term goal is to have about 100k in passive income in 13 years and grow this to about 200k in 26 years. Our strategy is more buy and hold as we'd like to continue focusing on our current career as the main source of income/cash flow.
With the end goal in mind, would it be wiser for our first purchase to be an IP or a PPOR? I believe the numbers work better with a IP for various reasons. We live in Sydney and so finding a PPOR that meets our requirements of being fairly close to the city and close to amenities is outrageously expensive and the mortgage we'd have would lock us down. Also we would most likely only be able to afford an apartment/unit than a house. Tax benefits also work more in favour of an IP (we're in for the long haul so I'd like to dismiss GC exemption). Would the wise members of SS agree with this? Or could it make sense to make our first purchase as our PPOR?
Thanks!
FTB