Ive still got a little more saving to go untill Im ready to buy our first property, so am utalising that time to understand us much as possible about real estate investing to create a positive cashflow.
What Im after opionons on is buying your first property.
What in your opionon would be the *better* thing to do first. Buy your own home and use the equity etc from that house to buy an investment property. Or buy an investment property that has either neutral or posotive cashflow, then going on to buy your own home with the equity etc.. from that property.(or properties if one was willing to wait to build their assets a bit more first)
Theres probably heaps of bits and pieces Ive left out of this that may have a big impact on the way either path would work, so feel free to educate me [grad]
Melissah
Melissah,
Bingo that both paths work. In fact some investors NEVER buy a PPOR for themselves, it makes more sense for them to rent & buy more IPs.
As to which approach is best RIGHT NOW, my view is that if you have a low yield in the areas you can afford to buy your PPOR in you’re probably better off renting, having the landlord cover the expensive mortgage & buying an IP in an area where your yield is better.
However if you live in an area where you can buy into the market relatively cheaply, then go for a cheap PPOR, pay it down fast & use your equity to leverage into IPs.
Cheers,
Aceyducey
DItto to Acey’s reply.
PS.. have you jumed ship from the other forun Acey ?
KP
Melissah,
Remember to facor in the FHOG and also any stamp duty concessions you may get
This mght make the PPOR purchase the more attractive.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Cool, so it can work well both wasy depending on the area/cost etc of the property.
I thinkt hat atm, Im better off buying an investment property as I can borrow more this way and the houses in our area are way out of our reach atm, and the with the money we would have to spend on an IP would get us somthing somewhere we would not want to live oursleves.
This may be going completly off the topic – not sure if its even *allowed* to be discussed here on the forums [blink]
But Im wanting to use our company to purchase the property thru. If we were going to buy a home for us to live in, can our company buy the property and rent it to us?
Melissah
Melissah,
We do that via a Trust.
I’d not recommend that you use a company for purchasing property however. It doesn’t offer the same security & tax advantages.
Cheers,
Aceyducey
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