Just wondering what your thoughts are in regards to renting in the area that you want to live in but are unable to currently afford to buy in and buying an investment property instead of a place to live in now.
Hope this makes sense.
ThanksThis is not a bad idea at all. At least you get into the property market. I attended a seminar 18 months ago where some couples had 4 investment properties and rented. They felt that ownership tied up too much of their money with no tax benefits. To be honest, we own our own home and I have suggested to my husband many times to sell, use the money to put deposits on 10 other investments and rent but he is skeptical and feels that the house is our saftey net. It is a matter of opinion however I believe that if you can buy something it is better than nothing.
We do! Whatever works for you. Median house price is $1.2Mil where we live and I really don't have that in my pocket, but I have investment properties
I wouldn't sell PPOR if I had it just rent it out and use any equity for deposits.D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeThanks Guys,
We do already have a home but we will be selling it due to a separation.
I thought buying an investment property would be a good opportunity to do something better with the money than put it in a term deposit or something.A few people have told me that renting is basically dead money and that the rent money that i'm paying could be going towards paying off a property.
Mmmm now i'm more confused.
Any thoughts?It probably is dead money that could be used to pay off a mortgage. Where I rent the median house price is 1.2mil. I don't know about you but if I bought a house here I probably would have my hands tied until there was more capital growth and the repayments would be crippling. I rent a really nice large house for under $700 a week. So you are going to be the only one who can decide if this is right for you. Renting is not for everyone. We have to move around for work so renting and buying IP's works for us. If renting where you are is $250 a week and paying a mortgage is $300 then yeah why rent. But when the difference is more like $1000 between then uhh no!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MePersonally, I hate renting. I hate not being able to treat the house as your own, and worrying about inpsections etc. However, currently we are renting and have an IP just a few streets away.
We were living in 'our' house (5kids, 3bdrms), but my hubby got a new job which came with the option of the company paying the majority of the rental for us. So we have moved into a bigger rental. The other upside is now all of our debt is investment debt
Yeah look I do dislike it but I'm so used to it now I'm kinda over it. I do hate inspections and the rigmarole of getting new leases signed and being at the mercy of other landlords geez those guys are jerks (hahah)!
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeGreat to read these posts – completely agree that this is becoming an increasingly popular situation. Yes, it might depend on your specific circumstances, your rent vs mortgage costs, where you want to live vs where you can afford to buy, and how the tax benefits of the property vs your income will work – but definitely an option worth considering.
Sydneypropertyman
The only reason that i am thinking of renting and buying an investment property is that as i am now a single parent with 2 children the kind of place that i could afford to buy is more than likely going to be too small for us to live in.
But i would rather rent in the area that we are now living in something more suitable as my child is starting school this year and buy something like a unit around here to rent.
Does this sound like something only a crazy person would do?Nope, a crazy person doesn't plan for their kids future. If it were me I wouldn't hesitate to rent particularly if there were good schools and it was a nice neighborhood. You are not crazy though plenty of people will think that you are. DO NOT listen. Do what is best for you and your family!
Hey you could always move into a smaller house later if you really don't like a big one!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeMy sister and brother-in-law were against renting and wanted to give the best for their 3 children, so they project managed the building of their dream house on a good sized block. In the meantime they put up living in a shack on the property while the house was built. The funds ran out and the building stalled. After a few job changes it got started again. They were living close to poverty just to get this thing built. There is no happy ending to this story because when they moved in, their eldest already had a place of his own and the second one soon moved out as well. It was all for naught.
The beauty with renting is that you can live in a house that is suited for you now.
Definately – again, if you've got a good plan and stick to it
I wouldn't sell PPOR if I had it just rent it out and use any equity for deposits.
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