Units as IP or PPOR ?

Viewing 5 posts - 1 through 5 (of 5 total)

GoldCoastGirl
Member
@goldcoastgirl
Join Date: 2005
Post Count: 66
March 9, 2007 - 6:04 am
I’m thinking of investing in a one bedroom unit later this year as I can’t afford anything over $200,000 at this stage …….. do you think it would be better for me to live within it as a PPOR to increase its value (thus enable me to use the equity to gain further loans) or just stick with the place I am currently renting @ 225 per week and use it as my first IP (try to find a CF+ one bed unit) ???
I really wish I could afford to purchase a home or anyplace on LAND as I do realise that their prices increase rather easily and more quicker (overall) than those of units however the only way I can get started in property ownership and/or investment is thru a one bed unit.
If I do decide to go the CF+ IP route with the unit, what do you recommend I should look out for so I can “buy a bargain” and thus increase its value thru minor renovations (and/or improvements) ? Should I stick with something near-by as my first IP (thus South East Queensland based) ??
Wishing everyone prosperity!
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mathewc73
Participant
@mathewc73
Join Date: 2005
Post Count: 241
March 9, 2007 - 8:37 am
Hello GC,
Given that most times paid for renovations on IPs dont really get a corresponding rent rise, if I was in your situation I would probably make it a PPOR. Spend the next 12 months fixing it up on a shoe string budget (call in all those favours!).
After 12 months consider changing it over to an IP (get it re-valued and a depreciation report) and then buy another PPOR.
When you are low on cash I think your own time is your most valuable value adding approach.
Good luck with it.
Mathew
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GoldCoastGirl
Member
@goldcoastgirl
Join Date: 2005
Post Count: 66
March 10, 2007 - 1:09 am
Thank you!
What sort of improvements should I aim for first in my first PPOR unit so as I can then rent it out at a decent price (and thus attract a quality tenant)?
I’m naturally assuming I should aim to buy an older one bedroom unit as they generally need the most improvements or should I just go with something a little more new-er ??
The Central Gold Coast area alone has a nice mix of new and old units (tho’ I won’t restrict myself to just central GC naturally).
Wishing everyone prosperity!
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Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 10, 2007 - 1:49 am
Move in move out again and establish it as your main residence. Then you should be able to get CGT exemption on it while renting it for up to 6 years.
Terryw
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Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 10, 2007 - 1:56 am
Move in move out again and establish it as your main residence. Then you should be able to get CGT exemption on it while renting it for up to 6 years.
Terryw
Discover Home Loans
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au