澳洲Australia property Have u got your 'Dream'


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi there
Just contemplating a few things and was wondering...
What do u think about the idea that buying your dream ppor in the early stages of portfolio acquisition may compromise the growth of your portfolio and therefore your overall financial goals? As an investor, does your ppor change often ie: is it really one of yr ips that u just live in 4 now or do u already have yr dream ppor? If yes, at what stage in yr portfolio development did u acquire it? Or r u 'making' do 4 now with modest ppor preferring to direct all funds into more ips? Or do u choose 2 rent?

Eve:)  

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We rented for about 8 years before splurging out to buying our dream ppor....

Dream ppor can be

1. costly to purchase - I guess they wouldn't really be something you dream about otherwise huh?

2. expensive/time consuming to maintain (didn't think about the cleaning, gardening and maintenance that comes with a big house)

3. not quite the dream after living in it a while and your priorities change


The Y-man  

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Buying a dream (expensive) PPOR in early stages of portfolio acquisition would certainly slow or even stop progress.

We currently have a modest PPOR, which was our first property purchase.
After collecting a few IP's in the past few years, we will be ready to purchase our "dream" PPOR in another year or 2.

Although I'm sure that after a few more years, a higher dream will be the a new goal.  

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My dream of an architecturally designed home can wait until there's enough money to purchase it with very low (or no) gearing. It's too much non-deductible debt for my liking.  

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Eve said: ↑
.... r u 'making' do 4 now with modest ppor ...Click to expand...
Hi Eve

Why would a 'modest' home not be a 'dream' home?

As an Adult, I have moved 22 times. Since marrying and having children, we:

Lived in my own PPOR townhouse for a while - Great place, two storey townhouse, views of the City, idyllic setting, a real lifestyle property close to cafes, shops, train station etc, then sold it (remind me again why we did that?) and rented while the first family home was built. Great place, a half acre, views of the Dandenongs, idyllic setting, a real lifestyle property in a village atmosphere

After a few years, sold that and rented while the next family home was built. Great place, an acre, views over rolling countryside, idyllic setting, a real lifestyle property surrounded by horse paddocks and mobs of kangaroos

After a few years, sold that to be closer to the bus stop. Great family home, a half acre, terrific in ground pool, views through natural bushland, idyllic setting, a real lifestyle property, walk to the local shops, drop in on friends, etc

After a few years, sold that, moved into one of the investment properties while trying to design & build the next family home on a block we had bought which had extensive views over Melbourne. After twelve months and lots of wasted architect's fees, bought an established family home within walking distance to the secondary college. Great family home, really big block, terrific in ground pool (which nobody ever used), views to the ranges, great neighbourhood, bus at the end of the street, a real family property ideal for teenagers.

Now that we have an Empty Nest, we are looking to build again, this time a much smaller house but with a 'bunk house' for visitors – and maybe some furniture without holes in the cushion covers!

All of these have been 'Dream Homes'. All of these have been great to live in and once we started buying properties for investment none of these properties have slowed us down, in fact, our stable residential history (more than 5 years in each house) has enhanced our borrowing capacity

There is nothing quite like A Home Of Your Own.

Owning your own Home gives you more than tax free capital growth. It gives you prestige, a feeling of achieving something of real value, and it opens up avenues of choice not available to you while renting

Each of the times we rented, we always felt that we were treading on eggs. I have tried to convey to our tenants that we are stable landlords and that it will be their decision to stay or go, and we have always had long term tenants who were able to relax and settle in.

We have valued our homes on many levels. Lifestyle, tax benefits, emotional stability, and just the freedom to make our own choices

People sometimes argue that they can make more money by renting, but it takes a dedicated individual to pay the least amount of rent and to invest the rest of their 'disposable' income.

The reality, I am sure, is often far wide of the ideal, with the supposed benefits being spent on lifestyle

Why put off until tomorrow what you can achieve today? Live in each home as if it is your 'Dream Home' and it will be your Dream Home while you are there

Cheers
Kristine  

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Eve said: ↑
Hi there
Just contemplating a few things and was wondering...
What do u think about the idea that buying your dream ppor in the early stages of portfolio acquisition may compromise the growth of your portfolio and therefore your overall financial goals? As an investor, does your ppor change often ie: is it really one of yr ips that u just live in 4 now or do u already have yr dream ppor? If yes, at what stage in yr portfolio development did u acquire it? Or r u 'making' do 4 now with modest ppor preferring to direct all funds into more ips? Or do u choose 2 rent?

Eve:)Click to expand...
Hi Eve,

Buying your dream ppor depends on your circumstances ie:inheritance,gift,deposit,salary,job stability,lifestyle,spending habits,family and comfortably managing the loan repayments etc.My preferred ppor will come later but for now and ever,i'm happy to live in a shoebox,where ever.

As to your other ?'s i'll give you my kick.I bought 2 postcodes away where i'd want a ppor.My previous rent was the same as my mortgage repayments,so it was a no brainer and i wanted a kickstart in the market.Having a saving history BUT being a casual,i was wrapped when they approved my loan.
Though where i'm living atm may not be my preferred ppor,it's in a quiet court,my work base and i would even offer a burglar a key if he/she wanted:p
I've had a job promo recently but still casual,more $,company car,mob + some equity/deposit,so i am now looking at maybe land,ppor or other.So i'm making do to pounce.
My next take will be on what i can afford,value etc.

PS.Home is not with your heart but your heart is with life.

PSS.JJJ and somersoft:cool:Hmmm nighty night or morn:D  

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I certainly did not start with 'Dream Home'. My first PPOR was a modest two bedroom unit with a little court yard, purchased immediately after I finished Uni. It was nothing special with nowadays standards, but I was so proud of it and I certainly saw it as a big achievement to be able to save a deposit for my own home. :D

My second PPOR was our first marital home on a beautiful acre block with views to the city. We actually loved the place, lived there for years and end up paying the mortgage completely off before we moved to our current residence. The current PPOR is so called Dream Home by many people's standards (and was for us in the beginning), but funny enough after 7 years our dreams seem to have changed and we are looking to move again. :p We just do not know where? :eek:


Has it slow our investment strategy down? Absolutely! But do we regret that: Answer is NO. ;) You can not measure everything with $, lifestyle, feel of achievement, security, also paying PPOR mortgage is forced savings for people, who are not disciplined enough to save in other ways.  

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The problem with buying your dream PPOR in the early stages of wealth accumulation is that it does slow down your investing, no doubt. The other thing I've found from experience, is that once you get a bit of wealth and you've achieved a few things, that 3 things change:
1. Your circle of friends
2. You
3. What you consider to be your dream PPOR

So delayed gratification has it's place as does living in the moment. You just need a bit of wisdom to tell what is most appropriate for you, your family and your circumstances.  

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Kristine.. said: ↑
As an Adult, I have moved 22 times. Since marrying and having children, we:

KristineClick to expand...
and i thought i was bad moving houses that many times. :)  

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We simply cann't afford our 'dream' PPOR. We cann't even afford a bigger PPOR - even if it didn't tick all the boxes. We could sell both our properties, but it wouldn't make a difference because servicability is the problem. We 'might' be able to afford something we would like and consider as a PPOR, but only after saving a large deposit and even then only if we rented it out (so the income increased our servicability). So we make do with what we currently have until we are in a position to afford something bigger and better. By the time we can afford it, we may decide that our money is better spent elsewhere anyway. But there is no rush. The kids are fine sharing bedrooms, and I don't have to worry about a LL. :)  

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Close to my heart and thanks Kristine for such a great perspective on the "real" scenarios . I loved to your respect for tenants because I can fully agree with ya on that renting feeling. I know a lot of people renting , especially a family, even single people , need to feel that security.
We've just finished a 3yr stint renting between houses and we all had that uneasy , not ours , can't do anything , they might want their house back feeling right through the 3 yrs, f'd up our quality of life .

It's a really tough question though, our road hasn't been even remotely close to what I would have chosen. We traveled for 10 yrs interstate , I sold what I had in Vic before we left . Never bought in that 10 yrs, ah yeah did buy one - for 6 wks , yep 6 wks. The agent got in trouble for selling it so cheap and wanted it back if I was willing . So before it settled I agreed, I was unsure about it anyway and it didn't look like I could get the dosh to settle , didn't tell him that, he threw in a 20k sweetener out of his own pocket and then resold it in the end.
Spent that money and anything else we had on more moving and traveling , my life property wise is a really long story but we ended up flat broke and in NSW with nothing so I wrapped a reno , finished it off and resold it. We lived in it for 14 mths , made good money on it which got us back on track.
After all our travels and moves I just wanted our own place to plonk but that ended up another 5yrs away. Back to Vic, bought an acreage place with the reno money, hated the spot so got out and went into that rental . I still had some money left and did some more reno's , tried to build a bit of a portfolio up while we were waiting to find something else . That dragged on , I was very suss of our property prices and didn't wanna be in hock upto our teeth forever either . They started to drop but then Rudd threw in the stimulus and they took off again.
Still renting , looking and waiting , took 18mths for that to all come and go and prices to start dropping again but we also just couldn't find anything that we could either afford or liked enough to buy in the meantime anyway and finally , just last Christmas the one we've just bought came up. House on one ac. 8k out of town, 15 mins to the coast , really nice views , really cheap, needs a reno which we love anyway but it is a beauty.

This is only a fraction of our story but it's the best I can do without taking up 1/2 the forum space. Anyway , dunno if the long road was worth it but that was more the way it panned out than choice. But, we have two other places now plus this one , sold of the forth and our mortgage here is so cheap it's almost embarrassing , plus we'll have a t/load of equity in it and the others, we could retire if we wanted .
But now that we're finally here and in love with this place , we find we've had it with investing and do wish the last 7 or 8 yrs were spent living like this in our own cool little property . Although as I say our situation was more trying to turn the chain of events into a positive rather than choice and it has but non the less, wouldn't have chosen the long road that's foresure , just for money .
But , on the other hand , if what we want is gonna cost a million bucks and you feel adamant about ending up with that , no choice but to build up to it I guess and one day hopefully , we get our dream.
But personally , I say have a home of your own along the way, something you can call and live your own, plus it gives you heaps of security to fall back on . You just give up too much life if you don't at least set that up , ain't worth it.

Cheers  

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We're only one notch off the 'dream' PPoR but ours is just right for where we are currently. I'd like a house with bigger bedrooms and a mess/craft/play room on a slightly larger block, which is only a small step up from where we are now. The plan is to upgrade from this one in about 4-5 years, after we have a properly established garden and when the eldest kid is thoroughly a teenager. Although realistically we're more likely to do it in 7 years when the eldest child leaves home, unless we end up rolling in money in between or really start to aquire clutter here. But then, only two kids at home changes the 'dream'.

All changes with where you are in life though, if I didn't have 3 kids I'd have a completely different 'dream' house. I do like the town I currently live in though.  

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One more important point on my scenario . If I just kept that money invested instead of buying other houses while we were waiting , it turned out that we could've had our dream house much sooner. Having that money tied up stuffed up other financing a few times and that's another reason it took so long we missed out a few times . Can't beet ready and waiting cash !
So i'd wished a few times I didn't buy the others along the way but hey , I do have a ridiculously low mortgage now , a great property of own own and do pretty well own outright 2 other properties, so it ain't all bad.

Cheers  

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Hey RumpE , they might decide they have it better at home and haunt you forever :D

Must admit , just a maybe , after ours left home , we might wanna move back onto the coast , get some ocean views.
I call our new one inland but mainly because I have always had sea views before , so it feels like I'm 1000k in but in reality , 15mins , bugger all really.
Dunno if we would though , damn nice here anyway.

Cheers  

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random said: ↑
Hey RumpE , they might decide they have it better at home and haunt you forever :DClick to expand...
Oh, I doubt that unless they can come up with some local work ... we're in the country, they're far better off going to the city for uni. If it wasn't for the inlaws (and the crazy cost of housing) we'd probably move to the city ourselves at some point.

Although I think my 3yo thief would make quite a good locksmith but dunno what the demand is for those in the country :)  

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late reply

Hello to all that replied to this post - and thank you
I got very distracted with some pressing family matters over the past couple of months and didn't get back here, til now

You have all given some great perspectives on this thread and after reading I am feeling much more cruisy about whatever it is that we decide to do re: PPOR upgrade/ dream home now or later

But I have decided that renting is not for us - other than short time while building - for all the reasons that you said, Kristine :)

Our current PPOR is 1YO and beautiful - original design - quality throughout-hubby [builder] built it and I did all interior stuff - mortgage is teeny tiny - location is 500 metres from beach in quiet court - it would be considered a dream home by many. We have bought, developed/ reno'd 6 other places and spent 10 years living in beach shack style homes [and a caravan!] so that we could save and do other investing to get us to this point [and you know, we LOVED living in the shacks, and every one was 'home' as much as this new fancy place is now ]

But still we want to upgrade... why? We are very happy in this lovely home. But, I can see that upgrading can be a good way to build wealth and get profits out tax free when you sell - but really, we are more motivated by the creativity and sense of achievement of the build process :eek:

I think that maybe building wealth [equity] by continously upgrading PPOR may not be so good if you are thinking that at retirement you will need to downsize and move to a cheaper area - bc I am not so convinced that we will want to live further away from the beach [or if you lived in say, bayside Melbourne, would you want to move to outer suburbs upon retirement?]
We do currently have a shack house that is even closer to the beach than our PPOR is now - so I guess we are thinking if we keep upgrading our PPOR from where we are now - in 15 years or so, we can always sell our 5 times upgraded PPOR CGT free and then knock down old shack house and rebuild our final PPOR which is in a location that we would be very happy with - plus we would have given ourselves 5 more cracks at building so hopefully we might get it 100% right the final time!

So, I think we will just take our time, keep saving and see what comes up re: new PPOR options - as long as it doesn't stop us from doing other investing then I think PPOR upgrading is ok?

cheers
Eve  

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My choices and ideas have changed.

Eve said: ↑
Hi there
Just contemplating a few things and was wondering...
What do u think about the idea that buying your dream ppor in the early stages of portfolio acquisition may compromise the growth of your portfolio and therefore your overall financial goals?
Never had a PPOR, happy to rent a beautiful old ranch home on 'large' land area, (rural), cheaply, and invest in property.

As an investor, does your ppor change often ie: is it really one of yr ips that u just live in 4 now or do u already have yr dream ppor? If yes, at what stage in yr portfolio development did u acquire it? Or r u 'making' do 4 now with modest ppor preferring to direct all funds into more ips? Or do u choose 2 rent?

Eve:)Click to expand...
I'm just not a 'dream PPOR kinda person', more a roamer of the earth, cultures, countries, climber of mountains, a PPOR is not even on the radar anymore. Can completely understand and see the importance of that to some folks, but I can always rent. Maybe in a few years I might change my ideas on this. I might go ahead and build something overlooking acreage, hills, but it's not a strong desire at the moment...and I do have quite a few IP's to choose from if I ever decided I wanted to call one of them 'home'. So will be continuing to build wealth and assets.  

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Eve

What you are planning sounds similar to what we have done ... although, even tho we will be downsizing, we won't be downgrading in regards to area or ppor. If anything, because we plan to build the next one rather than renovate, the final ppor will be better.

But we have also gone from needing 5 bedrooms/3 bathrooms (with numerous kids at home) to 3 bedrooms/2 bathrooms ... already have our sites on a block of land half the size of the current ppor with a knockdown.  

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Eve said: ↑
Our current PPOR is 1YO and beautiful - original design - quality throughout-hubby [builder] built it and I did all interior stuff - mortgage is teeny tiny - location is 500 metres from beach in quiet court - it would be considered a dream home by many.Click to expand...
Just to warn you Eve - don't be too sure about this. Many people are disappointed when their original design house is considered "different" by others and does not fetch the price you might expect.

The Y-man  

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We bought our dream home a few months ago and are loving it. Although in saying that (dream) I mean the dream home we could afford, if money wasn't an issue our dream home would look much different.. I think most people could say that if they are prepared to openly admit it. It would most likely be about $1 million dollars more.

But I also agree that situations change and so will you from time to time.

Also, we've always done really well with our PPOR's in terms of them being good investments, they've actually made the most money out of any of our property investments because we get to live in them and work on them, especially the gardens, that makes a big difference and it's quite simple to achieve a great garden over time.  

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