Anyone had regrets overextending on PPOR?

Discussion in 'Investor Psychology & Mindset' started by TMNT, 1st Mar, 2020.

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  1. TMNT

    TMNT Well-Known Member

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    When it comes to PPOR, we all have a our wants, very wants, needs and non negotiables.

    Has anyone overextended or put a huge emphasis on something as a need/non negotiable, and once they got it, down the track, regretted it or thought it was overrated??

    to throw a few possibilities,
    - Postcode
    - Proximity to city
    - Ocean/Water views
    - Pool/Tennis/Sheds/media room, huge garden court etc
    - Block size
    - House size/number of rooms
    - Kitchen/bathrooms
     
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  2. Trainee

    Trainee Well-Known Member

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    Regretted impact of expensive PPOR on investing?
     
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  3. kierank

    kierank Well-Known Member

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    Until recently, we live in the worst house in our portfolio.

    Now we live the best in our portfolio, by a long way.

    Apparently, us old farts call it “delayed gratification”.
     
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  4. Archaon

    Archaon Well-Known Member

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    Not in this position, yet, but I have some wants that may see me over extending in the future.
     
  5. TMNT

    TMNT Well-Known Member

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    Just regretted in general, or thought well that was a overrated

    Like those people that dream about getting a boat their while life and then realise the costs and practicality
     
  6. samiam

    samiam Well-Known Member

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    on my way
    yes
     
  7. Morgs

    Morgs Well-Known Member Business Member

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    I suppose it comes down to your goals and if you need to compromise (delayed gratification as @kierank puts it) or if you can fit it into your plan as part of achieving those goals.

    I think for the average personal PPOR is the only goal they have when it comes to asset accumulation; and the only investment they have is their super. They're not even thinking about the PPOR as an investment vehicle.

    For me it is totally the opposite. At this point I can't justify the opportunity cost in having capital tied up in a PPOR. We will get there eventually but it is going to be down the track and a different life stage.
     
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  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    All property purchases are a compromise that is largely dictated by $$$$.
     
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  9. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    We had smart switches installed in all the lights on the ground floor of our new house. It cost a few grand extra. The technology isn't that great and doesn't integrate with other smart home systems at this point. Overall pointless right now.

    The saving grace is that it does have an upgrade path, if the manufacturer gets around to it (they promised it would be available by now).

    Overall I'd say the cost of a really good smart home system is still too high to be worthwhile.
     
  10. Tonibell

    Tonibell Well-Known Member

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    We went really big on the PPOR upgrade around 20 years ago - before the kids became a major expense and before the idea of investment properties.

    Over the years we heavily leveraged the PPOR to build an investment portfolio.

    Fast forward to current times and it would be a really effective strategy to downsize the PPOR and move in to an investment property - a nice one in a good area that was acquired during the GFC with this strategy somewhat in mind - as a transition to retirement.

    However - there is a bit of a family revolt about changing suburbs, too attached to the neighbours.

    So maybe would have been better off going with a cheaper PPOR from the start.
     
  11. Mark F

    Mark F Well-Known Member

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    Block size every time I have to mow the lawn :(
     
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  12. hammer

    hammer Well-Known Member

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    We bought a reasonably priced PPOR (380k) and are very glad we did not overdo it. We don't earn a huge amount and a cheap place has allowed us a lot of breathing room when things get difficult.

    I have no idea how people starting out do it in Syd at the moment....
     
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  13. TMNT

    TMNT Well-Known Member

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    Not me but my parents are just about every human being ive met has regretted the ensuite spa,

    Use it a few times and wish it disappeared for ever