Settled yesterday as my new PPOR

Discussion in 'The Buying/Selling Process' started by MightyWill, 1st Jul, 2014.

  1. MightyWill

    MightyWill MightyWill

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    After living in a house my entire life with my folks, I will be in the coming weeks moving to my new 2 bed unit in a complex of 3 blocks. My block is 14 stories while the other is 17 stories followed by the third which is only 3 story walk up. I bought a corner lot as I see that as the selling point in the future (internal 98sqm) (total 122sqm). New OTP units in the area are under 85 internal.

    This is a big shift in lifestyle going from pulling up in my driveway to pulling up in an underground security car park and walking to lift and then to apartment. I'm actually not looking fwd to it. I'm a bit scared in that I won?t have the freedom anymore. Do you all get use to it after a few weeks?

    I've just got the gas and electricity sorted out today and just send an email to the strata manager and building manager to get approval for installation of floating floorboards, etc. Doing all of this is not very an exciting task but more a stressful task.

    I somewhat feel maybe I should of bought a house out west for under 700k as opposed to a unit 10 kms to CBD. However, half the reason I wanted to move closer to work was because I was sick of travelling just over an hr each way to and from work. I'm talking the shire (south), it takes over an hr to get into the CDB (door to door). Would it of been different if it was my own house an hr away you think; out west (Canley heights way / Fairfield way).

    In the unit I move into in (about 4 weeks time), it will only take me 25 mins (door to door) to get to work. No need to drive half way and catch a train anymore. This allows me to sleep in an extra 30 mins and stay back in the city after work for an extra 30 mins for a drink or a meal.

    Should I only start thinking about a house when I have a kid, etc. The small team of four I work with at work all have houses. It gets me jealous but they are about 10 years older than me.

    Any thoughts?
     
  2. marg4000

    marg4000 Member

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    What you are feeling is entirely normal.

    Change is always a challenge but the best thing to do is to keep at the front of your mind the reasons you chose the apartment you did and the advantages it has to offer you.

    You do not need to stay there forever. It sounds as if it suits your lifestyle which is the main thing.

    Never be envious of your colleagues. You don't know what struggles and sacrifices they have made to get where they are today. And you never know, in 10 years you may be in a far better position than they are today.
    Marg
     
  3. Jacque

    Jacque Buyers Agent and Bookworm

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    Well done Will- it won't be long before you settle in and get used to the shorter trip and the convenience.... 10 years is a long time away. Enjoy :)
     
  4. SamL

    SamL Member

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    Good luck with it. I am amazed though you didn't at least try renting in a unit block before buying in! Then you would have known exactly what to expect!
     
  5. baby blue eyes

    baby blue eyes Vicki

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    Enjoy the lifestyle of a unit, the convenience to work. Get a house when you have a family if you still want it.
     
  6. Foxy Moron

    Foxy Moron Member

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    I endorse what others have said. Plus this unit has all the hallmarks of a brilliant future IP. For your finance did you get a standard P&I loan or IO with an offset facility ?
     
  7. MightyWill

    MightyWill MightyWill

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    I got P&I; I was keen on IO but my broker said to go P&I to get the loan through easier if you are PPOR.

    It comes with 100% offset.
     
  8. MightyWill

    MightyWill MightyWill

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    Yes it did get to a point where I got so fed up with looking and wanted space from my parents that I was going to rent a one bed. However, my parents have once said to never rent as its just giving your money away so I have stuck by this.
     
  9. alexlee

    alexlee Member

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    And you're listening to this advice because.........
     
  10. MightyWill

    MightyWill MightyWill

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    I don't get it. I listen to this advice because it makes sense. I guess what I'm saying is that if you can afford to buy, why rent.
     
    tess85 likes this.
  11. alexlee

    alexlee Member

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    Renting can be cheaper than buying, especially as expenses (body corp, etc) are not deductible, but they would be if it was an IP.

    Renting can be more flexible as you can move around for work, etc.

    By renting cheap you may have more excess cash to invest. When it's only for investment, you're not limited to a place that *you* can live in.

    'Why rent when you can buy' is one way of thinking about it. Does it make sense because it's the best option, or you just haven't thought through the alternatives?
     
  12. MightyWill

    MightyWill MightyWill

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    Take your point but I'm seeing things from a diff angle:

    I have the satisfaction knowing that I am not paying someone else's morgage
    I can paint or nail a nail as I wish
    I don't have to worry about landlords and their rules
    The place is mine to decorate as I wish
     
  13. alexlee

    alexlee Member

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    All of your reasons are emotional. None of them are financial.

    When trying to get ahead financially, emotional reasons are usually bad ones.

    If buying makes you happy, fine, just understand the financial costs as well as the emotional benefits.

    When you actually own something you rent out, you'll understand the fallacy of the 'paying someone else's mortgage' thing. Your tenants likely won't come close to paying what it costs you to own the property. However, the benefits (capital gains) far outweigh this.
     
  14. mumbai

    mumbai Member

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    very valid points!
     
  15. D.T.

    D.T. Property Lookerafterer

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    Will this be PPOR for rest of your life or for say 4 yrs?
    This is the only thing I consider in the ppor vs IO debate.
     
  16. neK

    neK Member

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    Welcome to strata living. It's a b!tch. Its not for everyone. You have all sorts of people from nice, to stupid, to douchebags.

    Couple things to consider for stress free living:

    1. Don't bother getting involved with strata. There are more politics in a strata apartment than working in a large company!

    2. Don't bother getting to know your neighbours. A "hi and bye" is sufficient (no smile required). Mainly because "friendly" neighbours are after your vote for some strata issue. If you disagree, things tend to go a bit south and things get awkward.

    The last thing you want to is leave the office politics and be greeted by the strata politics.

    That said, 30 mins on commute = WIN!
    I love my sleep in :) I love the fact i can leave the house at 8:30, walk to the station and still get into work at 9:05 :)
     
  17. baby blue eyes

    baby blue eyes Vicki

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    Now your loan is through change to IO, if you are lucky should be a phone call? Now you have the loan their outlook should be different.

    My son got a loan owner occupied and they would only give one year IO. After settlement we had it changed through the bank to five years IO. Absolutely no issue at all. His loan just scraped through the application process initially and our broker suggested we take it and then deal with them after settlement. It was good advice. It will be a IP soon.
     
  18. beachgurl

    beachgurl Member

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    Congratulations! Your life will be so different (and better) now you will be closer to the city.

    I had my own place in western Sydney and worked long hours in the city. My weekdays were cooking dinner, watching tv and going to bed. I moved to the eastern suburbs in a unit and life began. Safer commute home, much quicker, instead of cooking I'd go to one of the local noodle bars for dinner and if I was invited out in the city it was a cheap cab fare home with no concern about where I've left my car.

    Was the best decision for me. Now I have kids and am back in the burbs. While CG on the unit wasn't as great as a house I look back on my 'free' life with fondness.

    Gosh how old do I sound!
     
  19. MightyWill

    MightyWill MightyWill

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    Yes I agree to not get involved in the Strata politics. A girl at my work is on the committee as the secretary. Every time I walk past her desk, she is writing up an email to someone in the complex whether it be good of bad.

    Agree on the hello and good bye. Other than that, I will mind my own business unless someone is doing something outrageous in the common property.

    I plan to live here as PPOR for at least the next 5 years and see how things go. I don?t see CG going up too much over this time considering I paid top dollar during the current boom. Going to re paint this weekend. There is a skirting board that needs to be stuck back onto the wall. Hanging out a bit. Cannot see nails being used to hammer in so they must of glued the skirting to the gyprock during construction. Anyone have an issue if I hammer a nail to the timber skirting to a gyprock wall?
     
  20. MightyWill

    MightyWill MightyWill

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    Point taken here...