All Topics / Help Needed! / Advice on Next Step

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  • Profile photo of Mattie HMattie H
    Member
    @mattie-h
    Join Date: 2003
    Post Count: 5
    May 12, 2006 - 5:41 am

    Hi All

    I’ve been following these forums for a couple of years yet this is my first post.

    I bought my first PPOR at age 23 about 15 months ago for $240k in Perth suburbia (not my dream home, just a tax free investment). Its now worth $400k+ (loan is$240k as I refinanced to finish house).

    My options are:

    1.Sell this place while the market is booming and rent a place to live and hopefully buy 1-2 properties with the profit from my PPOR if I can find anything of value without paying too much during this frenzy we are experiencing.

    2. Hold onto the property and rent it out, rent a place to live and maybe look to use the equity to purchase a further property.

    My mid term goal is to build up at least a 5-10 property self suficient portfolio by the time the next boom comes around (im young i can wait!?!) and head towards financial freedom.

    Any advice ideas would be appreciated.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 12, 2006 - 6:13 am

    Why sell, very costly. Option 2 sounds good as you get to keep it, can access the equity, still claim it as your PPOR (even tho renting it) and will get some tax deductions too.

    Terryw
    Discover Home Loans
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    Profile photo of Property PassionProperty Passion
    Member
    @property-passion
    Join Date: 2005
    Post Count: 172
    May 13, 2006 - 8:09 pm

    if he isn’t living in it how does he claim it as his PPOR ? I dont get it [blush2]

    “It’s not how much money you make, It’s how you spend it that matters.”

    Aspiring property developer

    Giulio Taranto

    Profile photo of Mattie HMattie H
    Member
    @mattie-h
    Join Date: 2003
    Post Count: 5
    May 19, 2006 - 4:44 am

    Thanks for your comments.

    My only real problem is that all though it is costly to sell, The property will be very negatively geared and there is no adding value to an 18 month old house in a new area (that i’m aware of) so the property will not let me build my portfolio w/o pumping in alot more of my disposable income.

    Food for thought anyway.[strum]

    Cheers
    Matt

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086
    May 19, 2006 - 5:03 am

    can move away from ppor for a time but still nominate it as principle – idea was so people who were forced to move away for work and rent house were not penalised by paying tax upon sale – but can only have one ppor at a time

    I Buy Property http://www.cashflowproperties.co.nz

    Don Nicolussi | Property Fan
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