hey guys
I'm wanting check if my thinking is sound
CURRNT POSITION
---------------
-28 year old
-just about to move out of home
-IP1 just paid off --> equity at least $280,000
-IP1 bringing in $270 ($1,100 net per month)
-wage $82,000 ($4,400 net per month)
-business income $700 net per month
OPTION 1
--------
-buy a PPOR (principle place of residence) that i need to pay off for around $300,000 (unit)
-live in PPOR
-rent inflow from IP1 + wage + business goes towards paying off PPOR loan (NOT tax deductible)
OPTION 2
--------
-buy IP2
-rent out IP2
-move out and rent a place in a trendy suburb ($270-$300 per week)
-rent inflows from IP1 + IP2 + wage + business goes in an offset account to service the IP2 loan (FULLY tax deductible)
-take out the minimum amount for living expenses which includes the outgoing rent i'd be paying someone else for a roof over my head
OPTION 3
--------
your suggestions...
option 2 sounds good to me!
to put it out there - do professional investors live a PPOR that they need to pay off or do they prefer to rent(pay someone else) in order to always have their loan tax deductible
obviously living in your own PPOR has benefits such not being at risk of being evicted and told to move but aside form that am i missing something?
would like to hear your thoughts
cheers
I'm wanting check if my thinking is sound
CURRNT POSITION
---------------
-28 year old
-just about to move out of home
-IP1 just paid off --> equity at least $280,000
-IP1 bringing in $270 ($1,100 net per month)
-wage $82,000 ($4,400 net per month)
-business income $700 net per month
OPTION 1
--------
-buy a PPOR (principle place of residence) that i need to pay off for around $300,000 (unit)
-live in PPOR
-rent inflow from IP1 + wage + business goes towards paying off PPOR loan (NOT tax deductible)
OPTION 2
--------
-buy IP2
-rent out IP2
-move out and rent a place in a trendy suburb ($270-$300 per week)
-rent inflows from IP1 + IP2 + wage + business goes in an offset account to service the IP2 loan (FULLY tax deductible)
-take out the minimum amount for living expenses which includes the outgoing rent i'd be paying someone else for a roof over my head
OPTION 3
--------
your suggestions...
option 2 sounds good to me!
to put it out there - do professional investors live a PPOR that they need to pay off or do they prefer to rent(pay someone else) in order to always have their loan tax deductible
obviously living in your own PPOR has benefits such not being at risk of being evicted and told to move but aside form that am i missing something?
would like to hear your thoughts
cheers