澳洲Australia property Just after another perspective | Sydney

在澳大利亚


Hi Guys,

I have been floating around here for a while, but this is my first post.

We are in a bit of a different situation.

We have two IP's one in the Hunter region of NSW and the other in SE Qld.
these are valued at $390k and $360k respectively.
Our PPOR was in the western subs of Sydney.

Together with two others we have purchased the two blocks next to the PPOR. We are midway through the construction of a 24 x two bedroom development.We will end up with 8 each.

Currently we are renting a very comfortable house,Now this is where I would like some others perspective.
For us to buy our PPOR we would need to sell atleast 5 of the units, if we continue to rent we need to sell one of the units for them to be cashflow neutral.

We are in our early 30's with a young family, so we have plenty of time but I am not sure which way to go.

Please let me have some ideas

Thanks  

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Having a young family might make it more desireable to own than rent. However, taking the emotion out of the deal, I believe that renting, in your situation, would be the best option in terms of building a financially secure future, by a long shot.
I rent and don't plan on buying a PPOR. I can rent cheaper than I can own and all my debt is tied up in tax effective, income producing investments. However, I'm single and don't have kids living with me. YMMV (Your Mileage May Vary).  

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TKJJP said: ↑
We have two IP's one in the Hunter region of NSW and the other in SE Qld.
these are valued at $390k and $360k respectively.Click to expand...
Congratulations & well done. Also welcome to the forum as a first time poster.


TKJJP said: ↑
Together with two others we have purchased the two blocks next to the PPOR. We are midway through the construction of a 24 x two bedroom development.We will end up with 8 each.Click to expand...
OK - so each of the 3 parties, of which you are one, gets 1/3 of 24 = 8 units each.

TKJJP said: ↑
Currently we are renting a very comfortable house.
For us to buy our PPOR we would need to sell at least 5 of the unitsClick to expand...
Now I'm a bit confused as to your situation. Earlier you said "Our PPOR was in the western subs of Sydney". Now you are renting. Then you want to buy your PPOR :confused:

If you can "please explain" in the words of an (in)famous Qld politician, that would help us formulate some options / opinions.

Thanks,  

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Propertunity said: ↑
Now I'm a bit confused as to your situation. Earlier you said "Our PPOR was in the western subs of Sydney". Now you are renting.Click to expand...
i think you will find the operative word was "was". obviously the ppor is now one of the blocks that is having townhouses built on it - with the two blocks either side bought by two other people - so is no longer their ppor.

i won't comment on whether to buy or not as everyone's situation is different. you need to do the sums and work out what suits you best.

how good are you at reno's to improve value of a ppor? how close do you need to be for work/school etc? is it cheaper to rent or buy? what is the security of tenure for where you're renting? and a thousand other questions that only you know the answer to.  

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lizzie said: ↑
we're looking at buying and "renting" from ourselves thru a pm and at arms length so that we don't lose the cgt discount on our ppor - that is currently rented out. all very confusing i know - it is hard to make a decision because options are endless.Click to expand...
Is that really possible? If it was I would do it in a heartbeat but am very concerned about running afoul of the ATO.  

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I'm sorry for the confusion,

Our PPOR is now the development site.We will get 1/3 of 24 units being 8.

I guess the original plan was to complete the units, sell 5 or 6 and go and buy a PPOR.Since I have moved in here I have had second thoughts. I am leaning towards keeping the units, leasing them and continueing to rent.

I used to think renting was dead money, but as it has been pointed out, It is cheaper to rent the house we are currently in than it is to buy it.  

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I'm not a subscriber to the rent money is dead money idea, either. Apart from being cheaper to rent, in terms of cash flow, it also frees up capital to apply to IP's.
The other thing I like about renting is the idea of portability. I can live in an apartment near the beach and enjoy that for a while. If I want to try living in a CBD apartment, I can just move. No selling, settlements, refinancing etc.
I can move interstate if the mood takes me.
What works for me may not work for others, but that's what makes us unique, like everybody else :)  

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TKJJP said: ↑
For us to buy our PPOR we would need to sell at least 5 of the units, if we continue to rent we need to sell one of the units for them to be cashflow neutral.Click to expand...
For purely investment purposes then it would be better to keep all 7, selling 1 or keep all 8 being slightly neg geared...but how long till it becomes neutral or +ve anyway in the current rental market :)

TKJJP said: ↑
We are in our early 30's with a young family, so we have plenty of time but I am not sure which way to go.Click to expand...
However, there is more to life than investing. At some point your family will benefit from having a PPOR - especially when they get established in schools etc. Only you and Mrs TKJJP can make that decision ;)  

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lizzie said: ↑
i think you will find the operative word was "was". obviously the ppor is now one of the blocks that is having townhouses built on it - with the two blocks either side bought by two other people - so is no longer their ppor.Click to expand...
Thanks lizzie :eek:  

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