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Discussion in 'General Property Chat' started by Ember, 26th Feb, 2016.

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  1. Ember

    Ember Well-Known Member

    Joined:
    29th Nov, 2015
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    Location:
    Australia
    We have a valuable PPOR in inner city Brisbane. We like a lot of features about the house but as our family grows there are some issues that have not been able to be fixed by renovations, namely being on a semi busy road and lack of good entertaining areas.
    We don't want to sell as we believe it is going to continue to increase in value. To move to a similar place in same area would be over 1.2 mill. We are considering purchasing an IP as a more suitable home a few km away in a cheaper suburb, live there and rent PPOR until kids are older and we can decide what to do with the current house- move back, keep as IP or sell.
    Issue is the house we will be buying will be 650+ with a low potential yield. Partner is opposed to renting and we don't really want to move kids about if owner wants us to move out. Rents around here are high anyway so we would not be ahead.
    Not sure what is the best way forward.
     
    Last edited: 26th Feb, 2016
  2. Angel

    Angel Well-Known Member

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    19th Jun, 2015
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    1,277
    Location:
    Paradise, Brisbane
    High solid front fence?
     
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  3. JacM

    JacM VIC Buyer's Agent Business Member

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    12th Jul, 2015
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    Location:
    Melbourne, Australia
    Install double-glazed windows? Put a second skin of bricks on the house? Add a rooftop storey for entertaining area?
     
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  4. wylie

    wylie Moderator Staff Member

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    Location:
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    Could you buy a cheaper place nearby (same school area) and buy it with a rental appraisal. Rent it for six months then move into it. Keep the more valuable house as your PPOR and move back within six years to keep it CGT free (can this work if you buy an IP and move into it?)

    I just think if you are going to pay rent on a $650k house (guessing minimum rent $500+ per week) then why not pay a mortgage instead if paying rent?
     
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  5. The Y-man

    The Y-man Moderator Staff Member

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    Location:
    Melbourne
    @Ember

    I don't see an issue here.
    I always say PPOR is a lifestyle decision - if the new PPOR is low yield (you mean rental yield? Some of the best growth properties have really crap yield), then so be it - nothing wrong with that.

    The Y-man
     
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  6. Ember

    Ember Well-Known Member

    Joined:
    29th Nov, 2015
    Posts:
    54
    Location:
    Australia
    Thanks everyone, I think we will move at some stage but I know that a big purchase at the moment will stop us from expanding our investment portfolio. Ultimately we would be back on the rat wheel which is silly. Just sometimes I think we would enjoy a different place more.....and sometimes feel a bit stuck here. Just curious if anyone else struggles with lifestyle versus ambition.