How long did it take you pay off your PPOR ?

Discussion in 'Property Investment - Other' started by keithj, 4th Dec, 2009.

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How long did it take you pay off your PPOR ?

  1. < 5 years

    22 vote(s)
    35.5%
  2. < 8 years

    14 vote(s)
    22.6%
  3. < 10 years

    9 vote(s)
    14.5%
  4. < 15 years

    5 vote(s)
    8.1%
  5. < 20 years

    1 vote(s)
    1.6%
  6. more than 20 years

    11 vote(s)
    17.7%
  1. keithj

    keithj Member

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    The average home loan is often paid off quicker than the normal 25 yr term. How long did it take you pay off your PPOR ?

    If you upgraded, then guess how long it would have taken to pay off your first one.
    And if you're still paying it off, then work out how long you think it will take if things go as planned.
     
  2. skater

    skater Capitalist

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    Sheesh! That is a hard one. Only had 3 PPOR's. I can't remember if/when it was paid out. We drew down equity to fund Business and the first IP, then Business went bad. We owned that for 14 years.

    The second one we lived in for 7-8 years. It still has a mortgage attached and is now an IP, however we recycled the debt there and the non-deductable part was paid out within around 3-4 years, I think.

    Moving onto the current one. Have only been here for around 6 mths and have recycled a reasonable amount. The debt is bigger this time, but I'm sure it won't take too long. Since it's early days, I'd hate to try to give an estimate.
     
  3. Peter 14.7

    Peter 14.7 Wannabee Farmer

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    Interesting poll. According to one report only 34% of homes have mortgages? I find that one hard to believe. Poll may help.

    Peter
     
  4. jrc

    jrc Member

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    I think the Census figures indicate roughly 25% of homes fully owned, 25-30% rented (mortgage status of landlords unknown), balance being purchased.
     
  5. Peter 14.7

    Peter 14.7 Wannabee Farmer

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    Thanks.

    Opps, I noted a flaw in my response.

    Are we talking about:
    1. the last PPOR from its purchase or
    2. from the purchase of your first PPOR to when you paid it or subsequant ones off.
    If no 2, I got mine wrong.

    Peter
     
  6. JIT

    JIT Member

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    I haven't bought a property specifically as a PPOR yet, but may do so in the next few months.

    If so, based on my income and the value of the property (/loan amount) I plan to purchase, it could be paid out in 3-4 years' time.

    Maybe quicker if I do the recycle debt thing.
     
  7. Rixter

    Rixter $uper Investor (Retired)

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    Once an investor has sufficient equity in there home, why would one ever want to pay off their ppor when you can buy IP's beats me :confused:

    IMHO building your asset base as fast and as quickly as you can is where you create your wealth and net worth - not from trying to save on non tax deductible dollars.
     
    steveadl likes this.
  8. MCS_80

    MCS_80 Member

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    So how long did it take you to pay off your PPOR? Or is it still "owned" by the bank?

    Ours is far from paid off. Probably wont ever be paid off either. ;)

    Cheers

    Mick
     
  9. ianvestor

    ianvestor Future Middleman

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    I voted 'More than 20 years'. Infinity > 20.
     
  10. tess85

    tess85 Addicted to SS

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    We are putting $6k into the mortgage offset account per month, so 1st PPOR will be paid off in 8 years!

    Like the others though, we are going to buy more IPs, and keep the home loan on IO for as long as we can, so I voted over 20 yeaars too :)
     
  11. RumpledElf

    RumpledElf all fun in the big city!

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    Hrm. I sold my first (it would have been paid off in 3 years though), my second is now an IP being paid at the rate of the rent on it now, so that one will go in maybe 14 years from start to finish as I've never been particularly bothered with paying it off. Third we are selling off after 2 years and it was interest only. The one we looked at today will probably be our 4th if it is still for sale when ours goes on the market in February, but will be a mere placeholder house for a year or so and then an IP. And then after that I can see us doing a bit more housetrading so its virtually impossible to answer the question posed in the thread ...
     
  12. Witzl

    Witzl Bought, held, upgrading

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    i hope to "pay off" the PPOR mortgage by turning all the debt agains the PPOR into deductable debt against IPs.

    But i never expect to fully own my PPOR. Not for a bloody long time!
     
  13. Rixter

    Rixter $uper Investor (Retired)

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    Ours is far from paid off too Mick - no point to paying it off because you are only reducing your cash flow. Those same principle dollars could be used for covering holding costs on more properties and increasing your asset base further.

    We've had IO loans in the form of LOC's on our ppor's for years.
     
  14. JIT

    JIT Member

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    Rixter,

    What about converting non-deductible PPOR debt to deductible debt, then not repaying the new deductible debt, and keeping any excess cash in offset accounts? I think what Witzl is doing.
     
  15. Witzl

    Witzl Bought, held, upgrading

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    thats what im planning to do.... and also using excesses to buy more IPs :)
    im just waiting for the equity fairy to work more of her magic.
     
  16. Rixter

    Rixter $uper Investor (Retired)

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    What if you dont pay tax in the first instance - isnt all debt the same then?
     
  17. Witzl

    Witzl Bought, held, upgrading

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    I like the cut of your jib.
     
  18. Rixter

    Rixter $uper Investor (Retired)

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    Perk of LOE :)
     
  19. Witzl

    Witzl Bought, held, upgrading

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    i know - im aware of the perk ;)
    It's a part of my plan.

    We've only just started accumulating our base (2 ips an a PPOR, $1mil total), so next stage is converted PPOR debt to deductable debt and buying more assets.... and then we can get to the LOE stage.

    I am only 28 though, so ive got plenty of time yet.
     
  20. Rixter

    Rixter $uper Investor (Retired)

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    Generally doesnt your borrowing capacity remain the same tho?