Looking for feedback on my strategy/ideas

Hi, not sure if this is the right section but couldn't see it fitting anywhere else.

about myself, 23, I am currently fifo monday-thursday out of brisbane and moved back in with my parents roughly 2.5hrs away from Bris when I moved back from NSW.

I have a 20% for 300k property. Don't want to spend anymore than $350k as I'd prefer to not "go all out" on my first property.

Recently I've been thinking of making my first purchase a PPOR rather than an IP, but only for around 12 months. I am growing tired of leaving brisbane every weekend then driving back on monday morning. and I don't want to rent someones place for the sake of a few days, id rather pay my own mortgage.

Would it be a decent strategy to buy a PPOR and live in for 12 months, by that stage id be looking to buy another property either as IP or PPOR (portfolio now equal PPOR+IP) then hopefully a new IP every 12 months?
 
Consider a high LVR which in turn allows you to contribute a lower deposit.

This means you have more funds for any subsequent purchases. Yes you are paying (capitalising) the LMI but thats ok if you step back and look at the bigger picture.

Plus LMI tax deductible for the first five years of the loan or the life of the loan (whichever occurs first).

Leveraging is a powerful and often necessary strategy very early on in your portfolio.
 
^^yes agree, even if the money you're saving still ends up in the same offset, it's always good to keep it ready on standby. I tried explaining it to a friend and he ignored my advice and paid a huge, huge deposit for his first home. I'm talking well beyond 20%. Sigh.
 
Hi Kavo,

What is the purpose of moving in? Is it that you are unhappy with current living arrangements or to access a grant? Otherwise there might be no need and keep renting where you want to live and just invest.

PS My first 3 IP's I used LMI as it let me into properties for less cash as outlined above. Keeping spare cash in the bank is also good incase your FIFO arrangements fell through at short notice.
 
Consider a high LVR which in turn allows you to contribute a lower deposit.

This means you have more funds for any subsequent purchases. Yes you are paying (capitalising) the LMI but thats ok if you step back and look at the bigger picture.

Plus LMI tax deductible for the first five years of the loan or the life of the loan (whichever occurs first).

Leveraging is a powerful and often necessary strategy very early on in your portfolio.

The bigger picture you mean as in purchasing properties down the track?

My employment contract is casual however it is a permanent role. I have been there 4 months starting immediately after my last place of employment
 
Hi Kavo,

What is the purpose of moving in? Is it that you are unhappy with current living arrangements or to access a grant? Otherwise there might be no need and keep renting where you want to live and just invest.

PS My first 3 IP's I used LMI as it let me into properties for less cash as outlined above. Keeping spare cash in the bank is also good incase your FIFO arrangements fell through at short notice.

Yes I am living with parents paying minimal rent but 2.5hrs drive (no traffic) from Brisbane which is where I fly from every Monday. There are other reasons such as friends in Brisbane etc
 
Yes I am living with parents paying minimal rent but 2.5hrs drive (no traffic) from Brisbane which is where I fly from every Monday. There are other reasons such as friends in Brisbane etc

Understand its a bit long but also paying for an empty place all week is a bit iffy too. No one can make that part of the decision for you but you.
 
Understand its a bit long but also paying for an empty place all week is a bit iffy too. No one can make that part of the decision for you but you.

Thats the reason I'm not renting anywhere currently. I see the house/townhouse as an investment because it obviously isn't where I'd like to live when I get a bit older. My brother would probably also live there too
 
Thats the reason I'm not renting anywhere currently. I see the house/townhouse as an investment because it obviously isn't where I'd like to live when I get a bit older. My brother would probably also live there too

mm then it could work well for you. You looking at units in closer or housing on the fringe?
 
mm then it could work well for you. You looking at units in closer or housing on the fringe?

Currently looking at townhouses or houses around the Carseldine sort of area, would go around carindale but that seems out of my price range of what I'd like to spend
 
Currently looking at townhouses or houses around the Carseldine sort of area, would go around carindale but that seems out of my price range of what is like to spend

Yer good middle distance, that will do well over the next few yrs I reckon.
 
Yer good middle distance, that will do well over the next few yrs I reckon.

Thats the theory behind that area. Chermside seems to be getting expensive which leads me to think the prices will increase eventually in the suburbs just near.

As I said I'm not looking for a long term (read: lifetime) PPOR. More like a first home/first IP in one. In 12 months time, reassess the need/want to live in that house and also look to purchase another property.
 
The bigger picture you mean as in purchasing properties down the track?

My employment contract is casual however it is a permanent role. I have been there 4 months starting immediately after my last place of employment

Correct.

Casual employment is not the best employment status when it comes to LMI lending but some lenders do this well (namely CBA).
 
Correct.

Casual employment is not the best employment status when it comes to LMI lending but some lenders do this well (namely CBA).

Yeah I thought that may be an issue. But i can provide over two years of work history with no gaps.

Also my Dad could go family guaruntee (he owns, no mortgage) his PPOR
 
have you thought about renting in a share house or some type of arrangement like that. there would be something that would suit for sure in location you like but for cheaper tahn a mortgage. doing fifo you just want somewhere to keep your stuff till you get time off. then you could use your money to focus on a pure IP and get it working for you full time.

I know you are probably wanting to get away from "renting", but your only there every other week so you might as well get someone in it full time.
 
have you thought about renting in a share house or some type of arrangement like that. there would be something that would suit for sure in location you like but for cheaper tahn a mortgage. doing fifo you just want somewhere to keep your stuff till you get time off. then you could use your money to focus on a pure IP and get it working for you full time.

I know you are probably wanting to get away from "renting", but your only there every other week so you might as well get someone in it full time.

Yeah i thought about that, would probably go a different location with mates in Brissy. Thats why I started this thread was to get different opinions.

Reasoning behind the PPOR idea was i was planning on renting the other rooms to my brother, and possibly sister so the mortgage payments I physically paid would be near equivalent to renting in a sharehouse if you understand what I mean.

As you can probably tell I don't have much experience in this and am just spitballing ideas
 
sorry you and matt covered a bit earlier.

its harder to increase the rent to family than it is to tenants!

what about buying two, buy your ppor a cheap fixer upper around where you want to be and also an ip shortly after.

the ppor you can reno while your in it plus have the fam in there, get the first home buyer cash and create equity in it. give your self 6 months or so to settle in and increase value, then buy again. buy the preffered place (or elsewhere) and do the same again. take the fam with you for cheap labour:D

you have good roster to get work done on the house and manage tradies.

OR, would you live where you work? they provide accom i assume?? stay there to save cash maybe? or buy there??

i know i just hit the town at your age and had mates around, i got some renos done but could have more, and the 6 months turned into 18mths pretty quick!

or suck it up and do the drive for a bit longer, buy ip, save cash and buy again
 
sorry you and matt covered a bit earlier.

its harder to increase the rent to family than it is to tenants!

what about buying two, buy your ppor a cheap fixer upper around where you want to be and also an ip shortly after.

the ppor you can reno while your in it plus have the fam in there, get the first home buyer cash and create equity in it. give your self 6 months or so to settle in and increase value, then buy again. buy the preffered place (or elsewhere) and do the same again. take the fam with you for cheap labour:D

you have good roster to get work done on the house and manage tradies.

OR, would you live where you work? they provide accom i assume?? stay there to save cash maybe? or buy there??

i know i just hit the town at your age and had mates around, i got some renos done but could have more, and the 6 months turned into 18mths pretty quick!

or suck it up and do the drive for a bit longer, buy ip, save cash and buy again

Isn't the first home cash only for new dwellings in Queensland?

I did consider a Reno but don't think I'd have time usually quite busy on weekends.

I wouldn't live up here but if I wanted to I could probably nearly buy a house in cash :D
 
Isn't the first home cash only for new dwellings in Queensland?

I did consider a Reno but don't think I'd have time usually quite busy on weekends.

I wouldn't live up here but if I wanted to I could probably nearly buy a house in cash :D

I'm not sure what its doing in Qld, worth a look. Just looked. Its only new or otp, 15k. Scrap that idea

You could just organise trades for while your away. Plenty of time to nurse hangovers on the weekend... that's all i did!

Buy one where you work to! Live up there for a bit to save then rent it to work
 
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I'm not sure what its doing in Qld, worth a look. Just looked. Its only new or otp, 15k. Scrap that idea

You could just organise trades for while your away. Plenty of time to nurse hangovers on the weekend... that's all i did!

Buy one where you work to! Live up there for a bit to save then rent it to work

I have thought about that, but theres a lot of vacant houses and townhouses up there. Since no one lives in the mining towns and everyone travels from mackay or from Brissy they all live in Camps, I wouldnt be surprised if the town ends up dying but I could be wring and it could pick up.
 
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