All Topics / Help Needed! / What do we do?

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  • Profile photo of russmargrussmarg
    Member
    @russmarg
    Join Date: 2004
    Post Count: 6
    February 23, 2004 - 5:44 am

    Well the time has come to actually buckle down and make the big decission.We are first time home buyers as well.My question is should my wife and I buy a property to live in and renovate or do we buy an investment property CF+. We live in a Beach town where prices are very expensive. An investment in our town would be negative geared. We are struggling with what to do. We could buy a place for ourselves in the next town where prices are high but not as high as the coast. Even investing in the next town would probably be a negative geared property…What should we do???HELP!!!!

    Profile photo of judijudi
    Member
    @judi
    Join Date: 2004
    Post Count: 119
    February 23, 2004 - 6:21 am

    Hi Russmarg
    I guess if you buy a property to live in, then it has to be in the area where you are. However, you don’t have that restriction if you buy as an investment. If you buy a home, will you have any cash left over to invest? It might work out cheaper for you to rent while investing in another area. Depends on your goals and on how the numbers add up.

    Hope this helps

    Judi

    Profile photo of wilandelwilandel
    Member
    @wilandel
    Join Date: 2003
    Post Count: 761
    February 23, 2004 - 7:20 am

    Hi russmarg,

    This is like comparing apples to oranges. They will always be different.[:o)]

    You are the only one who can answer this question. Not long ago we decided to sell our family home to invest. It is going well for us, and we are really committed to make the decision worthwhile.

    Work out your priorities, if you really want your own home, then that is what you should do, but if you don’t mind renting for an indefinate term, then go for it.

    Remember you can invest anywhere, not just near to where you live. Most of our IP’s are about 400kms away, and it is working out fine.

    Good luck with the big decision,

    Del [:D]

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429
    February 23, 2004 - 1:28 pm

    russmarg, if you are really committed to living in the area you are in, and would like to buy there, consider purchasing as in investment first, and getting the tenant and the taxman to help pay for your property. Pay as much as you can into the loan.

    Then when the repayments are more reasonable, consider moving into it yourselves.

    If you are happy renting, then don’t limit your purchase to your hometown, but look elsewhere for perhaps better priced properties.

    Cheers
    Mel

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