Hi fellow investors!
This is my first post after much a few years of reading! I hope to begin contributing more as I get more time. I will cover my own personal situation before moving onto my question as per the subject topic.
I began investing in late 2008 after the GFC hit. I had a stable job at the time in the construction industry so I jumped in late 2008 and bought a block of land in WA. I built a 3 x 2 there and rented it out in early 2011. A few months after renting my place in Morley I purchased another rental in Thornlie. I then proceeded to buy another rental in Kenwick late last year. The house in Kenwick is a retain and subdivide and I hope to commence building late this year when the tenants lease expires. I am currently 25 turning 26 this year.
I am getting older and probably should be moving out into my own place soon. I have currently set the timeframe to 27 years of age (2 years away) however I note that it is hard to stop investing since its a snowball effect and if I purchase a PPOR it will hinder my future investing. My first question is: When did you purchase your PPOR to live in?
Currently I am thinking of putting 10% deposit for an off the plan appartment (~350k mark) which fits into my timeframe perfectly. The other option is to find a house in a decent suburb that I can slowly renovate while I stay there to create equity for more purchases. Problem is there is nothing decent around the $350mark except for maybe Mirrabooka. My second queston is: What should I look for in a PPOR to create equity with? I know I should be looking for the basics such as transport, shops, schools, good layout, double brick etc however is there anything else I should be looking for?
Look forward to hearing your responses!
To create equity quickly, try and make a profit when you buy – as in, get a property at a wholesale/cheaper price compared to its asking price. Instant equity by doing this. Good luck!
25 now, just bought second property, doing some small construction on said lots, which will hopefully turn it into 5 rental properties by middway this year (plan to purchase 2 more investments if things go well interstate by start of 2013).
I asked myself the same question, and realised, WHY do I really want my own place? The only answers I could come up with form my situation were family and societal pressures, to say I own something and claim my stake.
Fair enough if your partner and yourself decide it is important, a place for your future kids to kick around. Personally I rent and would like to continue to do so, this way I have the flexibility to move as I please, change scenery etc. not tied down to a location with the constant worry that horrible neighbours may move in next door :p also the cash can be used to build up a portfolio and I can utilise the cashflow to spend as I wish.
In saying that, i've lived in 6 houses, in 3 cities in 2 years, I suppose stability would be a comfort in the future. Few of my friends know I own property, so I hear the constant argument that I am throwing money away as a renter, personally see a PPOR as a way to kill your portfolio at my age, if I didn't have that desire to invest, sure it would be a good way to sit and just build up equity I suppose.
On a side note, a lot of developers I have met just rent (at figures like $3k a week mind you), and use the cash instead to continuously develop.
greentitle wrote:The other option is to find a house in a decent suburb that I can slowly renovate while I stay there to create equity for more purchases.This is what I've recently done. The market here has stagnated a little (particularly around the middle to high end) – it's not going down but there are some good opportunities. I recently exchanged on a new PPOR which I think represents pretty decent value – and following a reno, should value up a fair bit higher. So to answer the question in the title of the post – for me, given the current state of the market, now seems like a good time to buy.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi mate,
I agree strongly with Jamie and NHG. Also congrats on what you accomplished at your age. I too am also in your situation not sure if my next purchase should be my home or another investment project. I cannot justify paying my own mortgage when i can potentially knock it down and build something.
A Investment security is always going to be a rational and logical decision as money is to be made. What keeps me going with all the investments and the construction of small developments is to build up enough funds for that place you want to reside emotionally my Penthouse in Sydney City. I guess what i am saying is go hard with the investments until you get the place that you are completely satisfied with and deserved.
In response to your questions, a PPR should be sought after if your life situation is ready, or you want to settle down, if not stay home and keep investing and make more cash. Off the plan purchases are a double edge sword, please do your research regarding the area and how you feel the market will go in 2 years. If you exchange now on $350K and 2 years down the property prices drop you will be stuck on that contract price with a security worth less meaning you will have to shell out the difference from your own pocket. Please refer to our webpage http://www.homeloanexperts.com.au/property-types/off-the-plan-units/
Regarding what to look for in a PPR i believe you have named everything required, the only other thing is to find out the boom trends, of course if you have found area that has not boomed then this is a good choice. I believe also if your in the building game land and construction is going to be the best choice.
Hope this helps
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