should i sell my ppor and buy a bigger one?

[shail]

Hi,
I have been living in lower north shore for last 10 years in apartments(1/2 bedders). now its time for moving to a bigger place for various reasons. I have one IP and one PPOR both in lower north shore. I really dont want to sell any one of them. keeping them on investment, i have a budget of around 450 - 500k to buy new place to live in.

my main criteria is, 3 bed house/villa, close to transport, school/uni, less crime ratio.

Have been looking around in closer to my place, but i cant even think of getting 2 bed unit in this area in my budget. So decided to look elsewhere. now the dilemma is which suburb will suit my lifestyle. quick search on RE gives me few suburbs mostly near to baulkham hills, cherrybook, etc.

Still cant decide, if should look around in these areas or sell one apartment and get the place in the area closer to me.

any suggestions will be greatly appreciated.

 

[Rixter]

Its a lifestyle choice. No one here can tell you what you should do - only you can decide on that.

 

[cadence]

there are numerous threads about Baulkham Hills and the hills district in general, the latest one is here
http://www.somersoft.com/forums/showthread.php?t=64182

 

[Paul Do]

now the dilemma is which suburb will suit my lifestyle. quick search on RE gives me few suburbs mostly near to baulkham hills, cherrybook, etc.

Still cant decide, if should look around in these areas or sell one apartment and get the place in the area closer to me.

Go out to Baulkam Hills, Cherrybrook etc. and check it out, try commuting to work, etc. You might find it a complete shock or a pleasant surprise. That's probably the best way to narrow down your decision on whether to stay close but small or go out further with something bigger.

 

[shail]

Go out to Baulkam Hills, Cherrybrook etc. and check it out, try commuting to work, etc. You might find it a complete shock or a pleasant surprise. That's probably the best way to narrow down your decision on whether to stay close but small or go out further with something bigger.

Thanks Paul. planning to go around this weekend to see the area. also looking at the suburb profiles on domain. also looking at the thread jiggly suggested.
Havent got much info on cherrybrook area on this forum when did the last search. does anyone leaves in this area, and if so how they rate it?

 

[normailson]

Hi,
Still cant decide, if should look around in these areas or sell one apartment and get the place in the area closer to me.

any suggestions will be greatly appreciated.

From a property investment perspective, people will tell you that a PPOR mortgage is a "bad debt" and that IPs represent "good debt". This is not black and white.
The reality is somewhat different if you do not have your dream home that you will live in forever. Other factors that come into this is your risk profile and job stability.
In a rising market a PPOR mortgage will represent an opportunity to provide a CGT-free gain. This was advantageous in the past number of years where the price differential between an inferior property and a superior property was magnified. However, in less certain times you may want to be cautious and reduce debt.
By reducing debt on your PPOR i.e. selling a property to fund the move you provide yourself the opportunity to get more IPs by lowering your debt to service ratio. Effectively, you can reduce your bad debt and increase your good debt.
If you are confident in your employment, or very least marketability, taking on a PPOR debt may be a strategic move if the value of your IPs increases. You can then wait and sell at a later date (possibly years down the track) and pay down more debt or the whole bad debt with the increased amount.
I hope all that makes sense.

 

[shail]

Thanks Normailson. you are right about the reducing debt on ppor first and then buy IPs.
i will have to do some calculations.

been to baulkham hills area yesterday. didnt crosss the windsor road, saw the area from north to M2 and east to windsor road.
I like the leafy outlook, with close parks and reserves. roads are bigger and quieter.
the only drawback i thought was far for city. not sure how the bus frequency is on weekdays.

next week will cross the windsor road and will look around seven hills,crestwood area.

 

[bare_essentials]

I am from Cherrybrook and I can highly reccommend it. If i had the funds i would buy there or Beecroft. With beecroft being my first preferance.

Both suburbs have great schools. Cherrybrook has one of the best non selective public schools. decent enough public transport. Close to a train station (pennant hills, beecroft and thornleigh). 5-10mins to M2, 15mins to the F3 and M7.

During non peak hour, if you take all tolls (M2, Lane Cove & harbour Bridge), you can reach the city or Cherrybrook in 25-30mins. If you take just M2 and bridge then you're looking at 35mins.

Traffic for peak hour really builds up from 7pm onwards. If you decide to go to the train station (thornleigh) to catch a train to the city then if you get there before 8pm you can get either undercover parking or street parking. From 8pm onwards you would be looking at street parking (free) which is not bad but you have a bit of a walk up the hill. Personally I'd take the bus as by the time you drive to the station its 15-20mins (in peak hour) and then a 50-55min train trip. Beecroft also has plenty of street parking and is overall less busy to get on from than Penno or Thornleigh.

The buses are good as there are plenty of city buses now from Cherrybrook itself or from Castle Hill to take you to the city during peak hours. Loads of people find that cheaper than the train and lot more convenient. On the M2 and right until the city there are "buses only" lanes so depending on the bus even in peak hour you can reach the city in 30-40mins.

My sister studies at Mac uni and it takes her 15-20mins outside of peak hour to get to uni not taking toll. My reccomendation is to actually avoid the tolls during peak hour as more often than not its bumper to bumper car park.

With Beecroft, everything as Cherrybrook applies but travelling time is less (by about 15mins).