Does anyone have any advice on investing in 2 properties (1 main residence, 1 investment) versus 1 main residence of higher value?
We are considering selling our existing property which has seen high capital growth since 1998 to put all our funds into a new residence. Our mortgage is minimal, and we plan to take out a loan to extend ourselves further with a new main residence.
On the other hand, we have enough capital to purchase another property and keep our existing one.
Does anyone have any advice on the pitfalls / costs associated with owning 2 properties versus 1?
Hi,
I don’t think there is any correct answer to your question, it really depends on what is important to you and your goals. Your PPOR is a pretty low risk investment and is a good store of wealth as it will be CGT free, it also has a big impact on your lifestyle. The downside is that it doesn’t produce income and isn’t tax effective in terms of income tax.
If your main wealth creation strategy relates to property then you should try to acquire an IP(s), if you are more interested in building wealth through shares, building your own business etc. then maybe a more expensive PPOR would be a better choice.
Regards
Alistair
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