Stuck!!! Decisions Decisions... help pls.

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bullet46
Participant
@bullet46
Join Date: 2011
Post Count: 51
April 7, 2011 - 3:33 am
Hey guys,
Im needing your help yet again
I posted up a few weeks ago and was trying to decide if I should build again, but now things have changed…
We have about 100K after we sold our last place and we are now living with family memebers until we decide what to do.
What I cant work out is this… should we purchase IP then live in it as PPOR until a point where its gained enough equity to move out and be rented to create a positive cash flow situation OR should we purchase our PPOR and then once equity is built we purchase an IP…
My wife and I are just unsure about which direction is more suitable for entering the investment market… We've purchased both 0 to 130 properties and Rich dad poor dad) however they are yet to arrive.
Cheers
ALF1
Participant
@alf1
Join Date: 2011
Post Count: 237
April 7, 2011 - 8:02 am
Hi Bullet.
Woah! Way too broad to answer with any degree of accuracy. Please feel free to drop me a personal email below and i'd be happy to discuss further with you but really need more 'private' financial info to guide you with professionalism. The consultation is free and you're welcome to checkout my other posts as well as our our website.
Kind regards,
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
April 10, 2011 - 6:26 am
In general, IP first then PPOR…reason?
1. Say you rent a place to live for $300 a week and you rent out your place for $300 a week…you will still be better off because of the tax deduction it has on your income and another deductions.
2. Increase borrowing capacity compared to PPOR.
Regards
Michael
Mick C | Shape Home Loans
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