Renting vs Buying?

Thank you for detailed response.
So without cap gain, it would be impossible to upgrade to the next ppor. Every ppor needs to be treated as an investment property with a view to cg.

Yes and no.

I've always tried to smash the loan repayments down on my PPoR's as much and as soon as possible. It doesn't matter about CG then - you create your own equity, and the interest is not deductible, so I'd rather get rid of it asap.

I never set out to treat any of my PPoR's as an investment with a view to CG - until no.4.

I've just blundered along, living where my life took me at the time.

Amazingly, each one did ok, with one spectacular win (no.3) which doubled in value in 2.5 years.

But it wasn't yer standard 3 x2 in the burbs; it was a unique property that cost us a huge amount for us, bought at a bit of a discount and the area went bang soon after - total fluke..

The investing mind only came into being just after moving into no.4, and the view was then to use the PPoR equity for IP's.

The timeframe between no.1 and no.4 was 15 years. Lots of wasted time there I'm afraid, but we've still done ok even with the missed start..

Anyone who is lucky enough to have the knowledge to start off in PPoR no.1 with the view to use it for investing is way ahead of the game.
 
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Was renting for about 10 years before finally getting around to buying a PPOR.

The Y-man

I'll cast my vote for "renting but getting a bit sick of it".

Beginning to get old and fussy and want to update things as I would like them, or grow a decent garden etc.

How did people (including Y-man) go from IP's only into a PPOR?

Every time I think about it, it looks very expensive.
 
As long as you pay rent and he shows that on his tax return it's still classified as rent - doesn't matter who the tenant is.

And of course the rent has to be market rates.

i undserstand that i meant inst he scheme of renting vs buying its not really classed as renting is it when there will be no qtrly inspections no PM etc just pay the rent as if it was a mortgage repayment and live in a better house than i could afford seems like a win win
 
i undserstand that i meant inst he scheme of renting vs buying its not really classed as renting is it when there will be no qtrly inspections no PM etc just pay the rent as if it was a mortgage repayment and live in a better house than i could afford seems like a win win

Yes it's the best set-up for sure.
 
I'll cast my vote for "renting but getting a bit sick of it".

Beginning to get old and fussy and want to update things as I would like them, or grow a decent garden etc.

How did people (including Y-man) go from IP's only into a PPOR?

Every time I think about it, it looks very expensive.

We just got to the stage where
  • the rent was about to go up where we were living for the first time in 5 years
  • the intent to buy a ppor was already there for the first property - we bought it as a ppor but it became an IP "by accident"
  • we used to be in the habit of just poking our nose into open inspections at "dream homes" which we couldn't afford, just to go in to see how that end of society lived :D. There was one such house (typically advertised "POA" which to us meant "not affordable") which we popped into because we were in the area and the photos looked really great. When we got there, we were late, well after the open time. But the agent was still there, having finished a discussion with the owners. We went for a quick guided tour, and were suitably impressed. I casually asked for the price range and he said a price that was - well affordable (at a stretch). It tunred out one half of the vendor was keen to sell (the other half built the place and wasn't that keen) and the place had actually sold at auction 6 months prior but the sale fell through. Since then there had been little interest....we put in an offer about 5% below the auction price and that was it!

The Y-man
 
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