Hi all,
This is my first post on here. I've been lurking for the last few months reading up as much as I can in the time I have available. This forum is fantastic and I really wish I had found it sooner. Anyway, on to my question...
We are a single income family (both 30) with my wife at home looking after our 3 year old son. We currently have a PPOR in Sydney worth approx $700,000 with equity of around $520,000. It's a 4 bedroom single level, double garage etc. It's big enough, but could do with larger living areas for when we have 2 children growing up later down the track. I have been looking at investing in property for a while and using our current equity as our mortgage is quite low now.
We went to see our accountant who is my brother in law and he said that before we invest in property, consider if you want to upgrade your PPOR for a growing family beforehand. This threw a cat amongst the pigeons and we have since been out looking at what we can get for our money nearby in Kellyville and surrounding areas. It's really going to cost anywhere from $850,000 to $1 mill to secure a larger, nicer house.
So the question is, (I realise it's ultimately only a question my wife and I can answer, just looking for opinions on what others would do) would you upgrade your PPOR first and take on a larger mortgage (say $400k) or be satisfied with a more regular house and start investing in property? As mentioned, we are single income approx $125k a year. Buying a larger house would put off the ability to invest for 3 - 5 years I would expect.
I have a feeling investing will ultimately make us better off, but possibly at the cost of lifestyle in the short term. I'm willing to make sacrifices thoughif it will pay off in the long run through. Perhaps we could invest over the next 5 - 10 years and use the potential gains to upgrade our PPOR later down the track?
I'm obviously very new at this and am trying to soak up as much info as possible. I'm inspired by the people who say they can or are aiming to retire early and live off the cash from sale or investment properties or the rent. I would very much like to do this if possible.
Apologies for the long first post. We are at a cross roads and this decision will obviously have a big effect on our future finances and lifestyle.
Thanks in advance for any feedback.
This is my first post on here. I've been lurking for the last few months reading up as much as I can in the time I have available. This forum is fantastic and I really wish I had found it sooner. Anyway, on to my question...
We are a single income family (both 30) with my wife at home looking after our 3 year old son. We currently have a PPOR in Sydney worth approx $700,000 with equity of around $520,000. It's a 4 bedroom single level, double garage etc. It's big enough, but could do with larger living areas for when we have 2 children growing up later down the track. I have been looking at investing in property for a while and using our current equity as our mortgage is quite low now.
We went to see our accountant who is my brother in law and he said that before we invest in property, consider if you want to upgrade your PPOR for a growing family beforehand. This threw a cat amongst the pigeons and we have since been out looking at what we can get for our money nearby in Kellyville and surrounding areas. It's really going to cost anywhere from $850,000 to $1 mill to secure a larger, nicer house.
So the question is, (I realise it's ultimately only a question my wife and I can answer, just looking for opinions on what others would do) would you upgrade your PPOR first and take on a larger mortgage (say $400k) or be satisfied with a more regular house and start investing in property? As mentioned, we are single income approx $125k a year. Buying a larger house would put off the ability to invest for 3 - 5 years I would expect.
I have a feeling investing will ultimately make us better off, but possibly at the cost of lifestyle in the short term. I'm willing to make sacrifices thoughif it will pay off in the long run through. Perhaps we could invest over the next 5 - 10 years and use the potential gains to upgrade our PPOR later down the track?
I'm obviously very new at this and am trying to soak up as much info as possible. I'm inspired by the people who say they can or are aiming to retire early and live off the cash from sale or investment properties or the rent. I would very much like to do this if possible.
Apologies for the long first post. We are at a cross roads and this decision will obviously have a big effect on our future finances and lifestyle.
Thanks in advance for any feedback.
