Hi All,
I'm in a bit of a dilemma at the moment...hoping to get some advice on what I should be doing to turbocharge my wealth creation, but at the same time making sure I secure a quality home for me, my fiancee and future family.
Current situation:
-both earning median sydney salaries
-1 IP, purchased '07, now worth ~$350k, ~70% LVR
-1 PPOR, purchased this year, worth ~$350k, ~80% LVR
-looking to upgrade PPOR from flat to house in about 2~5 years
-looking to keep current PPOR as an investment
-current PPOR loan is IO only with offset account
-have some spare funds to use as a deposit for another IP (i was thinking another cheapish flat in canterbury/bankstown region)
Question is...we know we want a house in the Hills district as our future PPOR....and want to do it ASAP before prices creep up beyond our budget.
Should I approach this by...
A) Hold off on buying another IP, but instead save up for another deposit to buy the future PPOR asap to lock in today's prices. Then rent it out until ready to move in. Once moved in, pay down the debt before investing in more IP's.
B) Use available funds now to buy cheaper IPs in areas with more potential capital growth/returns
Would greatly appreciate any thoughts or comments!
Thanks, J
I'm in a bit of a dilemma at the moment...hoping to get some advice on what I should be doing to turbocharge my wealth creation, but at the same time making sure I secure a quality home for me, my fiancee and future family.
Current situation:
-both earning median sydney salaries
-1 IP, purchased '07, now worth ~$350k, ~70% LVR
-1 PPOR, purchased this year, worth ~$350k, ~80% LVR
-looking to upgrade PPOR from flat to house in about 2~5 years
-looking to keep current PPOR as an investment
-current PPOR loan is IO only with offset account
-have some spare funds to use as a deposit for another IP (i was thinking another cheapish flat in canterbury/bankstown region)
Question is...we know we want a house in the Hills district as our future PPOR....and want to do it ASAP before prices creep up beyond our budget.
Should I approach this by...
A) Hold off on buying another IP, but instead save up for another deposit to buy the future PPOR asap to lock in today's prices. Then rent it out until ready to move in. Once moved in, pay down the debt before investing in more IP's.
B) Use available funds now to buy cheaper IPs in areas with more potential capital growth/returns
Would greatly appreciate any thoughts or comments!
Thanks, J