Help please!!

Hi all,

I'm very new to this site, but have been greatly impressed with what I've read so far. Accordingly (given my naivety) when it comes to property investing I thought I'd throw out a basic scenario to run past all those who may be willing to pass on their wisdom to give me some guidance... as I really do have NO idea.

My situation is as follows:

Single
30 years old
No kids
Secure job
Gross Salary of $130K
No other investments
$450K deposit available (life savings)

I plan to relocate to Brisbane and there's no big factors dictating which suburb to reside in.

My options as far (as I can see) are as follows:

1. Buy a PPOR
what / where / how much - to achieve greatest capital growth, or

2. Rent & Invest (would prob rent a unit for $350/week inner city)
As above, what / where / how much / how many?

From what I've read so far, I'm thinking of buying a 3 bedroom house (PPOR) as close to the city as my budget will allow ($650K?) and paying it off ASAP (using savings from my income).

I would then (utilising the equity in the PPOR) buy other investment properties (not sure what / where) for the potential capital growth, depreciation, other tax benefits etc.

Any advice / tips on the above would be greatly appreciated.

Cheers,
DrNaps
 
welcome :)

lots of options there.

There are a million options, governed perhaps more by soft data issues, than the hard core numbers provided here.

A lot does come down to taxable income, risk profile, investment horizon, future family plans etc etc

ta
rolf
 
From what I've read so far, I'm thinking of buying a 3 bedroom house (PPOR) as close to the city as my budget will allow ($650K?) and paying it off ASAP (using savings from my income).

I would then (utilising the equity in the PPOR) buy other investment properties (not sure what / where) for the potential capital growth, depreciation, other tax benefits etc.
I think that sounds like a reasonably solid plan.

Just remember to put the extra payments into an offset account rather than paying down the loan, in case you decide later to let out the property as an IP - this preserves the tax deductibility of the loan. (For detailed explanation, see my recent blog entry.)
 
Hi, looking at it from a purely objective point of view.

Renting costs 350pw = 18200 buying $650K PPOR costs $40200 p.a.

I know, you have a high deposit so it'll cost you far less.

I've long realised that it's not the PPOR that makes the wealth, it's the 2nd, 3rd, 4th, 5th, 6th, 7th & so on property that accumulates the wealth enough for one to stop working & still have income & residual wealth.

Yes, a paid up PPOR is a huge asset. It quadrupled in value even before we retire but what do we do with it? If we sell, another house would still cost as much.

In short, why not consider both PPOR & IP/shares at the same time?

2 loans, or 3, one PPOR with offset, one line of credit and one IP loan.

It will allow you to claim all IP expenses against the home loan which remains the repository for your savings/wealth.

The only reason for not buying is if you think house prices will collapse & you can buy cheaper later. Many have discovered that to be a tragic strategy.

Only you can make the decision and it's a big one but good luck with it.

KY
 
Put down 20% deposit on 2 properties I/O loans (interest only loans with offset accounts), live in one property for at least 6 months then rent out to tenants and rent somewhere for yourself.


[Keep you spare money in offset account]

Look at how above goes [cashflow of money & how offfset accounts work and buy another property (this time you may widen your horizon and look at a commercial property etc).

Sheryn
 
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