Forum Replies Created
Completely agree with what Chris said above…friends of ours did a similar thing (buy PPOR on big block, subdivide land and sell it off etc) and thats a great way to go….there are lots of different ways to do it, each with its pro’s and cons thats for sure.
in regards to dazzlings comments, i can sooooo relate to that!! have similar situation in our family where female rellies who like nice stuff and are all bout material things etc were a bit taken aback when we decided to move out of our PPOR and rent it out. But they are mortgaged to the hilt and are currently having to beg borrow and steal to meet each mortgage payment whereas we are planning a $500k unit development for end of the year…I know what position i would rather be in!!!
cheers
Tim
Hi mate
I agree with the comments above….I am 24 and my wife and I bought our family home 3 yrs back as ‘it was the thing you did’ when you get married etc….However after spending the last 18months or so getting my head around the property thing, buying an investment place and really setting some goals and realistic ways to get there, we made the pretty big move to move out of our family home and start renting. We rented out the family home and are now in the process of trying to sell it, free up cash and fund developments. Our basic idea was that we had a $200k mortgage that was eating up a pretty big chunk of our pay, we couldn’t get any of the interest back through tax and we were therefore pretty limited with what we can do investment wise. Now our rent is half of what our mortgage used to be, therefore leaving more cash flow to buy IPs…Yeah you will get the old ‘rent money is dead money’ thing and if you only want to own your own family home then thats great, but in todays market to be able to afford to buy IPs it can be a little hard if you have a massive mortgage on your family home as well.
I guess my main point in my little story is if we had known a few years ago what we know now, we wouldnt have bought our own house, just rented from the start and bought IP’s.
Sorry bout the war and peace effort above.
Cheers
Tim
