Hey guys,
I purchased my first IP in Oak Park, Victoria last year.
I am now engaged, and my partner and I are wanting to purchase another property as soon as we've accumulated enough of a deposit.
Whilst we would love to stop renting and purchase a house, the way I see it our options are:
1. Buy an investment property that is negatively geared, keep renting
2. Buy an investment property that is positively geared or more neutral, keep renting
3. Buy a PPOR that is temporary (ie, not what/where we would want to actually live), not expensive, and could become an investment property later down the track
4. Buy a PPOR that better suits our needs (ie is more $$)
I want to make the best decision now that will not hinder us from a cash-flow perspective later down the track.
For instance, if we considered option 4, the sort of place i'm look at would cost us around 600-700k minimum. Assuming we had accumulated a $100k deposit, thats still quite a hefty P+I repayment. Need to think about - kids, what happens if she has to take a year or two off work ? School later down the track etc. Doing this now would mean it would be quite some time before any more IPs were even remotely possible I'd imagine.
Option 3, well, I don't see financially why it would be better than just buying an IP to start with and just renting - (I've already had the FHB Grant years ago, so I'm not sure that my partner would qualify).
Options 1 and 2 are what I'm leaning to (as the outlay to keep an IP is small, and for $430 a week we are living in a beautiful rental property). Then again I wouldn't want any IPs to restrict our ability to purchase the PPOR of our "dreams" later on.
I've got a few decent pay rises I can expect over the coming years as well. Of course what I'm not considering here is capital growth from my 1st property.
I guess what I'm interested in reading about are other peoples stories who've had to consider similar options and the rationale used behind making the decision...
Many thanks in advance
Cheers,
Adrian
I purchased my first IP in Oak Park, Victoria last year.
I am now engaged, and my partner and I are wanting to purchase another property as soon as we've accumulated enough of a deposit.
Whilst we would love to stop renting and purchase a house, the way I see it our options are:
1. Buy an investment property that is negatively geared, keep renting
2. Buy an investment property that is positively geared or more neutral, keep renting
3. Buy a PPOR that is temporary (ie, not what/where we would want to actually live), not expensive, and could become an investment property later down the track
4. Buy a PPOR that better suits our needs (ie is more $$)
I want to make the best decision now that will not hinder us from a cash-flow perspective later down the track.
For instance, if we considered option 4, the sort of place i'm look at would cost us around 600-700k minimum. Assuming we had accumulated a $100k deposit, thats still quite a hefty P+I repayment. Need to think about - kids, what happens if she has to take a year or two off work ? School later down the track etc. Doing this now would mean it would be quite some time before any more IPs were even remotely possible I'd imagine.
Option 3, well, I don't see financially why it would be better than just buying an IP to start with and just renting - (I've already had the FHB Grant years ago, so I'm not sure that my partner would qualify).
Options 1 and 2 are what I'm leaning to (as the outlay to keep an IP is small, and for $430 a week we are living in a beautiful rental property). Then again I wouldn't want any IPs to restrict our ability to purchase the PPOR of our "dreams" later on.
I've got a few decent pay rises I can expect over the coming years as well. Of course what I'm not considering here is capital growth from my 1st property.
I guess what I'm interested in reading about are other peoples stories who've had to consider similar options and the rationale used behind making the decision...
Many thanks in advance
Cheers,
Adrian
