PPOR vs Rent and buy IP

[lowb]

Here is the dilemma... There are personal as well as financial considerations in the decision between (1)PPOR vs renting and (2)buying another IP.

If (1)
Buy PPOR
pay of non-deductible PPOR asap.
IP purchases will be on the back burner
Advantages:
Get to do whatever you want to your own place
Disadvantages:
Non-deductible loan! Low rate of IP until PPOR loan fully paid off

If (2)
Rent/share, buy another IP
pay rent, save for next IP
Advantages:
More assets, more IP
Disadvantages:
Might get annoyed with landlords (e.g. can't paint/do stuff to pad)
Rent increases

Not sure what to do, I have time to think about it but the answers not clear.

 

[JIT]

lowb, we've discussed this topic several times before, why not do a search.

GSJ

 

[yo yo ma]

Hi lowb
Here are some links
http://www.somersoft.com/forums/showthread.php?t=31863
http://www.somersoft.com/forums/showthread.php?t=31175
http://www.somersoft.com/forums/showthread.php?t=30956
http://www.somersoft.com/forums/showthread.php?t=30616
http://www.somersoft.com/forums/showthread.php?t=30059
Hope they help
Steve

 

[alexlee]

Pretty simple. Financially, in this current environment (rental yields relatively low) buying IPs and renting is better than buying PPOR. As you said there are personal reasons for choosing to buy a PPOR (I am currently looking to do just that) which only you can answer.
Alex