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From: Michael Howser
Hello, o' learned ones.
I'm hoping to get some opinions from those who have been there, done that.
My wife and I are both in our early/mid 20's and are just starting out on this exciting journey. We're renting from family friends (only $100/week) and hence find ourselves in the dilemma of what to do first.
We're both very interested in IPs, so we have no questions about what we want to do, we're just not sure how to go about it.
We've considered a few options:
1/. Buy our 1st PPOR , live in and reno, then borrow against the equity for PPOR #2 (renting house #1). Do the same with #2, then buy #3 with the new equity. The tax benefits don't look good here though, because our new loan is now PPOR and hence interest not tax-deductible.
How do others do this?
2/. Buy an IP while taking advantage of the cheap rent, using the opportunity and tax savings to save for deposit on #2, or our own house.
3/. Build 1st PPOR in a new estate, taking advantage of FHOG and pre-family double income to pay off as much as possible. Borrow against equity in 2-3 years for 1st IP
(We realise this is a lot slower and riskier, but the personal comfort factor comes into play here.)
I'm sure there's many other options, just didn't want to bombard you all with too much info. Is there info required that might help the formulation of your opinions? We're in Vic, combined income just under 90K... More info needed?
Any opinions would be most welcome, as the more we read the more confused we become.
Thanks,
MH.
Hello, o' learned ones.
I'm hoping to get some opinions from those who have been there, done that.
My wife and I are both in our early/mid 20's and are just starting out on this exciting journey. We're renting from family friends (only $100/week) and hence find ourselves in the dilemma of what to do first.
We're both very interested in IPs, so we have no questions about what we want to do, we're just not sure how to go about it.
We've considered a few options:
1/. Buy our 1st PPOR , live in and reno, then borrow against the equity for PPOR #2 (renting house #1). Do the same with #2, then buy #3 with the new equity. The tax benefits don't look good here though, because our new loan is now PPOR and hence interest not tax-deductible.
How do others do this?
2/. Buy an IP while taking advantage of the cheap rent, using the opportunity and tax savings to save for deposit on #2, or our own house.
3/. Build 1st PPOR in a new estate, taking advantage of FHOG and pre-family double income to pay off as much as possible. Borrow against equity in 2-3 years for 1st IP
(We realise this is a lot slower and riskier, but the personal comfort factor comes into play here.)
I'm sure there's many other options, just didn't want to bombard you all with too much info. Is there info required that might help the formulation of your opinions? We're in Vic, combined income just under 90K... More info needed?
Any opinions would be most welcome, as the more we read the more confused we become.
Thanks,
MH.
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