Hi all,
I recently discovered this forum and I'm really keen to start myself on the road to my own IP portfolio. I've started reading some recommended books and feel like I'm learning more and more by the minute.
I've been doing lots of searches on here and I've seen lots of threads about turning PPORs into IPs.
What I'm trying to figure out is whether my current PPOR is worth keeping as an IP or not.
I only discovered the world of property investment a little while ago so this property was certainly not bought with any thoughts of it becoming an IP in mind. I bought it with my OH to get our foot in the property market door. We have outgrown it somewhat now and are looking to upgrade to a larger house at some point in the future but don't mind staying here for longer if it helps us to start buying IPs sooner!
So here goes -
We bought our current PPOR in 2005 for 330k. We owe 290k and it would be worth approx 400-450k on the market today. Estimated rent would be around $300 a week.
Details of our current PPOR:
Conventional solid brick house built around 1950.
Living area 97sqm.
Land size 700sqm with a 16m frontage.
Five main rooms (2 good sized bedrooms, living room, dining room and kitchen. Also bathroom with separate toilet and a small laundry).
Original kitchen and bathroom.
Floorboards throughout.
Single garage.
Large shed.
Original pergola/verandah area.
Backyard is all lawn - no garden.
Improvements:
Roof painted and sprayed, and new colorbond gutters installed.
Installed new aluminium windows and timber venetian blinds throughout.
Replaced one side of the backyard fence (previously very poor condition corrugated iron) with 6 ft colorbond fence. Remaining fence is galvanised corrugated iron in good condition.
Added cat fencing to keep our cats in our yard and keep other cats out.
Used the government rebate to install insulation.
Installed two split system air conditioners one in the living area one in the master bedroom.
Put in new automatic garage door.
New front door and security door.
Location:
Henley Beach, SA - fairly popular beachside suburb.
In a cul-de-sac on the same road as a high school with a primary school one block away.
We have enjoyed living here as the location is lovely, away from main roads but close to local shops, close to public transport, 5 minutes drive to the beach, 10 minutes to West Lakes shopping centre or Glenelg, 20 minutes from the CBD.
My main issue with the location is that the cul-de-sac we live in turns into a parking lot for the high school students during the day.
I'm finding it really hard to be objective when thinking about whether to keep my PPOR as an IP. I think I'm too emotionally attached to the house because it is my first house which leans me towards keeping it so I'm really hoping someone can help me by looking at it from an investor's point of view.
Apologies for the lengthy post!
Any advice/opinions would be much appreciated.
I recently discovered this forum and I'm really keen to start myself on the road to my own IP portfolio. I've started reading some recommended books and feel like I'm learning more and more by the minute.
I've been doing lots of searches on here and I've seen lots of threads about turning PPORs into IPs.
What I'm trying to figure out is whether my current PPOR is worth keeping as an IP or not.
I only discovered the world of property investment a little while ago so this property was certainly not bought with any thoughts of it becoming an IP in mind. I bought it with my OH to get our foot in the property market door. We have outgrown it somewhat now and are looking to upgrade to a larger house at some point in the future but don't mind staying here for longer if it helps us to start buying IPs sooner!
So here goes -
We bought our current PPOR in 2005 for 330k. We owe 290k and it would be worth approx 400-450k on the market today. Estimated rent would be around $300 a week.
Details of our current PPOR:
Conventional solid brick house built around 1950.
Living area 97sqm.
Land size 700sqm with a 16m frontage.
Five main rooms (2 good sized bedrooms, living room, dining room and kitchen. Also bathroom with separate toilet and a small laundry).
Original kitchen and bathroom.
Floorboards throughout.
Single garage.
Large shed.
Original pergola/verandah area.
Backyard is all lawn - no garden.
Improvements:
Roof painted and sprayed, and new colorbond gutters installed.
Installed new aluminium windows and timber venetian blinds throughout.
Replaced one side of the backyard fence (previously very poor condition corrugated iron) with 6 ft colorbond fence. Remaining fence is galvanised corrugated iron in good condition.
Added cat fencing to keep our cats in our yard and keep other cats out.
Used the government rebate to install insulation.
Installed two split system air conditioners one in the living area one in the master bedroom.
Put in new automatic garage door.
New front door and security door.
Location:
Henley Beach, SA - fairly popular beachside suburb.
In a cul-de-sac on the same road as a high school with a primary school one block away.
We have enjoyed living here as the location is lovely, away from main roads but close to local shops, close to public transport, 5 minutes drive to the beach, 10 minutes to West Lakes shopping centre or Glenelg, 20 minutes from the CBD.
My main issue with the location is that the cul-de-sac we live in turns into a parking lot for the high school students during the day.
I'm finding it really hard to be objective when thinking about whether to keep my PPOR as an IP. I think I'm too emotionally attached to the house because it is my first house which leans me towards keeping it so I'm really hoping someone can help me by looking at it from an investor's point of view.
Apologies for the lengthy post!
Any advice/opinions would be much appreciated.