Hey there,
If there are any experienced investors or people with some knowledge about my question I would appreciate any advice.
I want to upsize my apartment ,but don't know if I should buy at my limit or if I should settle for something cheaper as I want to buy more property's to invest and create a portfolio.Would it be wise to buy a cheaper apartment which still has many of the requirements I need but in a suburb further away from CBD?
I have a feeling that it may prevent me getting an investment property soon if I borrow too much on the PPOR.
Thanks
Tyhey again,
maybe an easier way to describe it is
is it better to have one PPOR worth 500,000 dollars and then wait for the equity to rise or have one worth 300,000 dollars but aquire an investment property in addition within a yr?
Cheersone option is to continue living in your apartment – then use your equity to invest in an investment property
Just thinking investment – you should have the cheapest house possible. A tent under a bridge maybe. This would free up funds to invest in further properties. If you have a property, you can still leverage off it, but only to around 80 to 90%. That means 10 to 20% is tied up.
But would you want to live in a tent?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hey
thanks for the input. I understand what your saying and it's what I thought but as I don't have a great deal of experience it is good to hear from people in the know. I don't want to live in a tent but I would like maybe something I can add value to ,rather than buy a expensive flat with no room for improvement…Ty, Investment properties are a much more efficient generator of wealth than a PPoR (due to tax detectability of expenses and income from rent of course), so if your main concern is building wealth as soon as possible, then as Terry says, keep your PPoR as cheap as possible. At least you won't be paying rent, and you'll have the security and stability of owning the place you're living in. After a few years when you've built up your portfolio and net worth, then you can think more about a more luxurious PPoR. You should be thinking about converting your first PPoR to an investment property when that happens, so plan accordingly, eg don't pay out the PPoR loan, ie keep it IO with all funds going to an offset account.
If you really want to live close to work where the cost of your PPoR is much greater, then maybe just keep renting while you're building your investment property portfolio.
S/C.Thanks so much..
Some good tips and peace of mind I'm on the right track.
Cheers
You must be logged in to reply to this topic. If you don't have an account, you can register here.
