澳洲Australia property Fast and slow words | Sydney


在澳大利亚 Hey guys, So I realise this is an extremely broad topic and cant easily be summarised into a few paragraphs, but we envisage that a pretty solid strategy in the outer eastern suburbs of Melbourne where we live is to: 1. Buy a house at the fr Finally managed to get unconditional approval today for a block we put an offer on WAY back 1st July. Weve had 3 finance clause extensions and sacked one broker but now finally my very very patient vendors and I can move on to settlement. I


Was reading RK's "Retire Young, Retire Rich" (again) last night, and he is talking about the words we put in our heads as a factor in your progress to get rich (assuming you are trying to do this) -

Slow word - Save (money in a bank, etc)
Fast word - Depreciate (tax deductions on assets)

Slow word - appreciate (waiting for an investment to grow in value - Sydney right not withstanding)
Fast word - cashflow (allows more acquisition of assets with cashflow)

Slow word - doodad (keep you poorer)
Fast word - asset (increases your cashflow)

Interesting...I hadn't realised just how much my (and others here, no doubt) mindset has changed since first starting down this investing path...

How much has your mindset shifted since discovering investing, or have you always had the right words in your vocabulary?  

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I find it odd how property investors use the term PPOR (Principal Place of Residence) instead of "Home".  

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wategos said: ↑
I find it odd how property investors use the term PPOR (Principal Place of Residence) instead of "Home".Click to expand...
On the forum using PPOR makes it very clear whether the house being discussed is rented or not. It is a bit clearer than "home", which could have been both PPOR and IP.  

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Because you can rent a home? PPOR terminology implies ownership. There are more people opting to rent a "home" as it improves cashflow to further invest. With more younger people wanting to adopt the fast track to retirement by 30 to do whatever for likely 60 years after that, it is becoming a popular option. It's not just for young people either.

I'm early 40's and happy to work till 50, so having a PPOR Motgage doesn't bother me so much as my repayments are half what rent is in my area.  

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Sonamic said: ↑
Because you can rent a home? PPOR terminology implies ownership.Click to expand...
Pretty sure you can rent your PPOR, it doesn't imply ownership. Anyway I use the term home, I dont see any difference. When is your home not your PPOR and when is your PPOR not your home ?  

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BayView said: ↑
How much has your mindset shifted since discovering investing, or have you always had the right words in your vocabulary?Click to expand...
I grew up with property investors and started reading for sale ads for property as soon as I hit high school. I helped my brother in law renovate his second IP when I was in first year uni so he could get a better rent and improve his cashflow. I think I picked up the concepts early on and I have applied them to each IP that I have purchased. They work!  

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wategos said: ↑
I find it odd how property investors use the term PPOR (Principal Place of Residence) instead of "Home".Click to expand...
It's a tax thing.  

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wategos said: ↑
Pretty sure you can rent your PPOR,Click to expand...
Yes, rent it out to someone else.

wategos said: ↑
it doesn't imply ownership.Click to expand...
Oh yes it does.

wategos said: ↑
Anyway I use the term home, I dont see any difference.Click to expand...
Really? I'd wager the Tax Office knows the difference.

wategos said: ↑
When is your home not your PPORClick to expand...
when you are renting a house while ...
wategos said: ↑
and when is your PPOR not your home ?Click to expand...
...you are renting out your PPOR while not owning any other property.

Lesson here is Home = Slow word.
PPOR = Fast word.  

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LVR, DSR, IRR, PPoR, P/E, Subdiv, reno - fast "words"

I find it odd how property investors use the term PPOR (Principal Place of Residence) instead of "Home".Click to expand...
From a taxation angle; investors use this word to refer to their place where they live, as opposed to any other property they own as investments that are rented.

Generally; it refers to the property they are living in and buying; with a non-deductible loan attached to it.

It can also refer to the place in which you live - which you might be renting - but this is not the normal use of the term, I've found.

It separates the place where you live from the places you have as investments - either in discussions, and/or for taxation purposes.  

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I think PPOR sounds more, what's the word....sophisticated.

It makes one feel more clever than what they may appear and I like that. Everyone knows "home", but PPOR, now that's something special.  

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I still like RK's massive mindset myth buster "Your home is not an asset, it is a liability". Pre investment mindset, the home owner pumps never-ending cashflow into something that looks pretty and gives us warm fuzzies.

With an investment mindset, a PPOR is an ATM of cash deposits to be levered.  

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Angel said: ↑
I still like RK's massive mindset myth buster "Your home is not an asset, it is a liability". Pre investment mindset, the home owner pumps never-ending cashflow into something that looks pretty and gives us warm fuzzies.

With an investment mindset, a PPOR is an ATM of cash deposits to be levered.Click to expand...
Nicely put, very succinct.

But, still wouldn't make the wife understand.  

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perthguy said: ↑
It's a tax thing.Click to expand...
Yep, sometimes it's easier to get into the habit of using the proper term rather than coming up with something else.  

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wategos said: ↑
I find it odd how property investors use the term PPOR (Principal Place of Residence) instead of "Home".Click to expand...
A lot of people rent their home out then rent places overseas to live for a few hundred dollars a month.  

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Phar Lap said: ↑
Oh yes it does.Click to expand...
Nothing in Primary Property of Residence implies ownership to me.

It's merely saying that if you have multiple homes, this is your main one.
I know that it's generally accepted that you own it, but that doesn't necessarily need to be the case.  

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spludgey said: ↑
Nothing in Primary Property of Residence implies ownership to me.Click to expand...
It'd help if you actually know what PPOR stood for?  

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Hooray said: ↑
It'd help if you actually know what PPOR stood for?Click to expand...
Primary ~ principal

I stand by my point though.  

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Principal Place of Residence.

Until three hours ago I had always assumed it meant the house we own and live in, differentiating it from the IPs we own. I can see now that it can be a place we live in that we rent off another party and we do not have to own it. However with this second meaning, it would not offer any cash out facility. Let's not go into the various cash flow details of owning vs renting, that's another matter.

Thank you Twodogs :) BTW I am the wife.  

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spludgey said: ↑
Primary ~ principal

I stand by my point though.Click to expand...
Well no, I disagree with your point.

PPOR means you own it as far as Im concerned, the tax office, land tax assessment is concerned and banks, and brokers?etc.

All except you and wategoes.:rolleyes:  

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spludgey said: ↑
Primary ~ principal

I stand by my point though.Click to expand...
Go find your Primary Property of Residence on the ATO site. Can't find it? not the same thing, then.  

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