A GROWING number of young people are buying investment properties rather than homes click here for more: http://www.gpsnetwork.com.au/MediaArticles.html
Just wondering, how many of us can really do this? Would you keep investing and rent your ppor?
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Hi GPS
I have read your attatched doc and agree with it!
My husband and I live in the city centre and use public transport for work, walk into the city for shopping and love the convinience of having a nice pool etc without the admin.
We are currently looking for investment properties in areas that we would not live, but that have the potential for great opportunites!
Thanks for the interesting info,
Mapleleaf
Achieve the Dream!
Interesting reading.
I must admit that this is definitely a strategy that I have thought about though not what I ended up doing. We bought about 10km fruther from the city than we would have liked to have lived because it was $100k cheaper.
Negatives – more travel to the city, further to go out and visit friends and family
Positives – you can paint a wall electric blue if you choose, you can decorate to yoru own tastes and know nobody is going to kick you out when your lease is up and you don’t have agents checking out your living arrangement twice a year. And the most positive of all is you can renovate while you’re living their and create value.
It is something I’ve considered doing a number of times but I’ve figured that now i’m out in suburbia it is a great house with everything how I want it and I’ve added enough value that if I wanted to sell up and move back in I could. Instead I invested in property number 2 and 3 with the money.
I think young people learn the most by doing some hard yards to get to where they want to get to. It’s great to move into your own place and have an incentive to do it up and save to move somewhere else that you want to live.
Though I do see the tax benefits – that was my main motivator of thinking about this strategy.
sorry Roy H
but your question is a bit specious.
i perused the article several times and could not find reference to
“renting your ppor”
have i fail to notice something?hb
Investing in and renting the property you own sounds even better
Has its pro’s and con’s but if your a buy and hold person….
;O)
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThere is no doubt that this is the better way of doing things, I guess for a younger person or a single person it’s not much of an issue to rent the place you live in and keep investing, but is it doable when you have a family or planning one in the near future?
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
I guess young people are doing it now cos they simply can’t afford to buy a house in the cities. Simple as that. If I could afford a PPOR inner city, I would. Instead we have to buy in outer suburbs or interstate when historically the best performers are in the cities. Its nice that the market is flat to negative in the cities in the East. Investor demands are pushing prices in the regionals.
But make sure you have a clear exit strategy. When the cities start moving again, you want to be in the game. Our parents have traditionally done very very well from buying and holding PPORs CGT free. Food for thought…
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