Help, we need advice.
We’re in the process of selling up our farm and moving to the Mornington Peninsula.Looking at properties around $500,000 to live in. We should have about $300,000 free after our mortgage is paid out. Also I will have another property settlement within next 12 months with an expected $200,000 for later investment.Just not sure whether to rent or buy. Do we borrow another $200,000 to buy a peninsula property using our $300,000 as deposit (and use our increasing equity to borrow against) … or keep the $300,000 to get started with a investment property portfolio and rent a house on the peninsula? Repayments or rental would be about the same.
Serendipity that’s really a lifestyle choice that probably only you can answer. Some serious investors have actually sold their home so they can maximise their investment property portfolio. All I know is that you should be able to rent out a property for a lot less than it costs to buy the same property, particularly in Melbourne and Sydney, where the property owner would be lucky to get 3% gross rental return. It can’t be too different on the peninsular. If you rent, you don’t have to worry about rates, maintenance and above all TERMITES! It must be a bit of a pest having inspections (pest inspections
]), and the possibility of being kicked out at the end of your lease if the owner has sold the property etc.
I would be happy to rent and invest my PPoR’s worth, but my wife has very different ideas. She needs the sanctity of her own home, so of course she wins out[].
Best wishes for your new lifestyle.
Regards, Jim
]), and the possibility of being kicked out at the end of your lease if the owner has sold the property etc.
].The topic ‘Rent or buy’ is closed to new replies.
