I currently have a about $60-80k in savings and have no loans. I am after some opinions on which is the best option? Do I buy to rent or buy my own home first as I currently rent.
Hi and welcome aboard :-)
Why not do both? Purchase a PPOR – renovate, add value, release equity and purchase an IP.
I wrote an article about this a while back. Here’s the link.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Jamie Thanks for the advise.
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This reply was modified 10 years, 3 months ago by
sperrinla.
Hi there
I currently have a about $60-80k in savings and have no loans. I am after some opinions on which is the best option? Do I buy to rent or buy my own home first as I currently rent.
Financially it’s usually better to buy to rent. But there are other factors like your family situation that can influence your decision.
There are 4 different options that you should consider:
1. Buy investment property and live in a rental for now and buy PPOR in the future.
2. Buy PPOR now and buy investment property in the future.
3. Buy PPOR now, convert to investment property and buy new PPOR.
4. Buy investment property, convert to PPOR and buy new investment property.No matter which option you choose, you need to make sure you structure your loans correctly from the beginning.
Cheers
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auI currently have a about $60-80k in savings and have no loans. I am after some opinions on which is the best option? Do I buy to rent or buy my own home first as I currently rent.
Great question. I’ll try a short answer. Buy a home, don’t be emotive about it, consider it an investment. Look for a property with what I like to call an “addable value component.” This way you get a double bonus. First your home is CGT free and second you can add thousands of dollars to a property by renovating, subdividing, improving etc. all tax free. Be aware that your motivation must be to buy a home not an investment ;) or CGT will be payable.
Vando | Surf&Yoga
Email MeExperienced property developer offers passive investment... 9.64% net PA, no gearing.
Buy a property (It doesn’t really matter whether it is an IP or PPOR) and link it to an external income generator.
Get the balance of your money working for you at a higher interest rate that the interest you are being charged on the loan.
This will increase both your Asset base and income.
Cheers
Yours in Finance
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This reply was modified 10 years, 3 months ago by Richard Taylor.
Richard Taylor | Australia's leading private lender
Depending on your location, if you are financially better off renting than owning then I would continue to rent and purchase an investment property. Depends on what kind of investment you are after too. I own a number of cash flow investments properties but still rent and have no plans to buy a PPOR anytime soon. I can rent cheaper where I live than to outlay a large sum of money to buy in this location. Because the investment properties are all cash flow positive so this helps in obtaining finance for further properties. Investment purchases should be numbers based and PPOR will be more emotional based. Really depends on your situation and what you want to achieve
Good points “just do it”
I agree. If you want to live in a certain suburb where yields arte low you are often better off renting and buying in ares that have a higher yield.Having properties with a higher yield means you can purchase more because when you are puting your hand in your pocket all the time there comes a time when the pocket is empty.
I love Cashflow because it gets me closer to retirement.
Some people say renting is dead money, but this is only so if you do nothing with the extra cash you generate. Making your money work smarteris the key, whether this be for a PPOR, an IP or other investment class.
I think it is important to remember that property investment is a business which provides accommodation. In saying that, there is a profit and loss statement together with a balance sheet. If purchasing a PPR the decision is made with your heart and may not be in the best growth area. If purchasing an investment property it is a financial decision so you look at it strategically which should make your balance sheet look healthier in the future.
Kylie Walsh | PPI Investment Advice
http://ppiinvestmentadvice.com.au
Email Me | Phone MeLicensed Property Financial Advisors who provide Tailored Property Advice and Solutions
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This reply was modified 10 years, 3 months ago by
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