Hello all,
This is my first post here, and I’m wondering if I can get your thoughts on our situation.
We currently have approx $140,000 equity in our PPOR, situated in SE Qld. Due to work commitments, we’re moving to Sydney and thought we would sell and buy something down there to live in. We’ve never owned an IP before (two small kids, one income for last 4.5yrs). But now we’re seriously considering setting up our PPOR as an IP, and taking the plunge by purchasing another IP at the same time (something cheap and cheerful) and renting our PPOR in Sydney.
Our property in QLD has very good potential for capital growth, having lived in this particular area for 3yrs and knowing all the forthcoming developments (new shopping centre, schools, upgrading highway to provide direct commuting to Brisbane which is 1 hour away etc..) It’s also a rural area atm, and our land size is 4006m2 so future potential for sub-division as well (not permitted at the moment).
How would you structure this? What are your views on renting rather than owning your PPOR – any pro’s / cons we should be aware of? Or is this just a plain silly idea?! Any input would be greatly appreciated [smiling]
Cheers,
mumndadHey there,
Without knowing your market, I’d say it sounds like an excellent idea. A wise person once told me “never sell real estate – just buy”. Whilst many would disagree with that approach, if you believe your PPOR will have good long term growth, AND you can develop in the future, I’d definetly hold onto it.
Make sure that your family are cool with renting their PPOR before you sink all your money into investments. I thought we could rent our PPOR, however when my wife fell pregnant during my time of researching property investment (with intent to buy) the whole thing went out the window (she wanted to own the PPOR).
Tax wise, if I recall correctly it’s actually cheaper to rent your PPOR and own investment properties than it is to own your PPOR. But it’s horses for courses.
Not sure if I’ve been much help, but my 2c worth would be to hold your QLD property….
Cheers
QL
You must be logged in to reply to this topic. If you don't have an account, you can register here.
