Anyone purchased an IP that cost more than your PPOR

Discussion in 'The Buying & Selling Process' started by jins13, 26th Nov, 2016.

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  1. jins13

    jins13 Well-Known Member

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    Hi,

    Guess it was going to happen sooner or later, but a recent purchase that is settling in Dec cost me more than my PPOR and for some reason having funny feelings about it. Granted my PPOR was bought about 5 years ago...... I know @Gockie had a thread about IPs you would like to live in.
     
    Last edited: 26th Nov, 2016
    jins13, 26th Nov, 2016
    #1
  2. dmb1978

    dmb1978 Well-Known Member

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    Yes, we did but we knew ppor then wasn't the forever home. IP was well over ppor cost but that was the market and i still wouldn't want to live in the IP but it makes a great rental.
     
    dmb1978, 26th Nov, 2016
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  3. Hosko

    Hosko Well-Known Member

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    Same position here jins. PPOR is the lowest value place we have.
     
    Hosko, 26th Nov, 2016
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  4. Greyghost

    Greyghost Well-Known Member

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    All my IPS cost more than my PPR.
    But my PPR is worth more than any of my IPS.

    There is no issue with purchasing a PPR at a higher value than an IP as long as it is within reason.

    Too many people blow out or max out on a PPR, wait a couple of years and then with equity want to build a portfolio. Problem is they are still carrying too much non deductible debt crippling their servicing. Thus lifestyle decisions are affecting wealth creation decisions..

    Ying and yang.. however many try to find the yang once they have too much ying so to speak..
     
    Greyghost, 26th Nov, 2016
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  5. kierank

    kierank Well-Known Member

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    For many years, not only was our PPOR the cheapest property in our portfolio, all our IPs provided better housing than our PPOR. That is, our tenants lived in a better level of accomodation than what we did.

    It was a great lesson for our kids. They would always ask why we lived in the worst house. We told them our tenants pay for the privilege of living in our properties..
     
    kierank, 26th Nov, 2016
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  6. Bran

    Bran Well-Known Member

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    Yep. But then we decided to move in the day after settlement as it suited us better. Still an IP in my mind though
     
    Bran, 26th Nov, 2016
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  7. ellejay

    ellejay Well-Known Member

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    PPOR is the cheapest property we own. Made it easier to get to a no non deductable debt position and buy multiple IPs, paying some off as well to create passive cash flow.
     
    ellejay, 26th Nov, 2016
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  8. JenW

    JenW Well-Known Member

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    Yep, two of ours are worth more than our PPOR. One is a block in Wembley - we are essentially land banking this, and will build our next PPOR on it, when we have the available $. The other is a bit of a cheat because it's actually three villas in the same group (group only has the 3 in it) so it's three individual residences, but we bought them at the same time so I mentally think of them as one property o_O
     
    JenW, 26th Nov, 2016
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  9. Perthguy

    Perthguy Well-Known Member

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    @jins13 all of my IPs have cost more than my PPoR. I like buying development sites. They are not cheap ;)
     
    Perthguy, 26th Nov, 2016
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  10. samiam

    samiam Well-Known Member

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    all our ips cost more than our ppor- but I live in regional and try investing in cities
     
    samiam, 26th Nov, 2016
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  11. Beano

    Beano Well-Known Member

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    All my IP cost more than my personal resident ...but if i go out with someone like Susan Sangster Renouf ...then all will change ...she will own all places and i will live in the back of the car
    Lol
     
    Beano, 26th Nov, 2016
    #11
  12. dabbler

    dabbler Well-Known Member

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    Why does this matter ? If you had your home for a while it would be expected.
     
    dabbler, 26th Nov, 2016
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  13. Beano

    Beano Well-Known Member

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    Correct ....personal home purchased first
     
    Beano, 26th Nov, 2016
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  14. Ace in the Hole

    Ace in the Hole Well-Known Member

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    When we just had 3 IP's, they were all valued higher than our PPOR at the time.
    5 years later, enough of the delayed gratification and current PPOR is now much higher than our average IP Val.
     
    Ace in the Hole, 26th Nov, 2016
    #14
  15. Ross Forrester

    Ross Forrester Well-Known Member

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    I have bought commercial that is more than my PPOR.

    I tend to find commercial only works properly when you go beyond 1.5m to 2m to knock out owner occupiers.

    For resi I like properties that will sell quickly so that keeps me around the affordable category.

    I know others are different - but I just like to reduce risk where possible.

    Risk is a currency.
     
    Ross Forrester, 26th Nov, 2016
    #15
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Very common actually

    More so with peops with IPs 3 and on

    ta

    rolf
     
    Rolf Latham, 26th Nov, 2016
    #16
  17. big max

    big max Well-Known Member

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    All mine are more than my ppor. Reason being is that I rent :)
     
    big max, 27th Nov, 2016
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  18. dabbler

    dabbler Well-Known Member

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    I thought you were renting that 29mil mansion on the beach ? :)
     
    dabbler, 27th Nov, 2016
    #18
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