We are currently selling our PPOR and are keen to start a property portfolio.
The sale of our PPOR will provide us with approx $130,000 cash but I would like some advise on the best way to go.
Is there any advantage in renting a residence and using the cash we acquire from the sale to purchase multiple IP’s or should the priority be to purchase a PPOR?
Chris
Thats an individual call, having said that, Steve Mc was renting while building his portfoilo
Regards Bear
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There’s been a similar debate rage over at Somersoft.
At the moment with low rental yields there’s a strong case for renting as you can rent a place for around half of what you would pay for it it in repayments.
You can use the extra money to buy more IPs.
However if you buy a PPOR you get the CGT exemption.
So there’s a case both ways.
With $130K you could also follow a middle course, depending on where you are based, and buy your PPOR and several IPs.
Cheers,
Aceyducey
Originally posted by Aceyducey:However if you buy a PPOR you get the CGT exemption.
You only get this if you ‘sell’ the PPOR however, if you don’t sell it , the CGT benefit is not worth anything.. there are strong cases for renting Vs living in PPOR.
All comes down to individual preference, we’re in a 3 bedroom place, i’d love to ‘rent’ something bigger ( 4 Bedroom or so ) however can’t convince the ‘Boss‘..[biggrin]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Thanks very much for the advice. Certainly gives us something to think about.
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