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Anyone think PPORs hold you back ?

Discussion in 'General Property Chat' started by aussieB, 6th Nov, 2015.

  1. aussieB

    aussieB Well-Known Member

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    Its my first year of owning a PPOR - a new unit with all new and high range appliances - and I think it is holding me back from making decisions about relocating. My contract with my employer is ending soon and I may have plans to relocate. But, I have never relocated before in Australia and its giving me the $hits.

    Do we just rent it out furnished ? I think, there is little hope of finding tenants who will take care of the furnishings. Do we just rent the unit out and ship our stuff to the new city ? How do people plan the execution of their moves ?

    I envy my colleagues who are mortgage free and can simply pack a bag, pay the lease break fee and move on with life :(
     
  2. Bran

    Bran Well-Known Member

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    I moved my family at least 9 times in the last 7 years, including interstate and overseas.

    I kept the PPORs, but rented them empty. I still have the crap furniture I did 10 years ago.

    If you have nice stuff, I'd ship it. But it will be damaged.
     
  3. bob shovel

    bob shovel Well-Known Member

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    Depends how long your moving and where.
    Its just "stuff " in your unit so don't be attached to it you want to rent it furnished!
    If your moving long term take the stuff with you. Depending where your going its about +100/wk for furnished. so if your going longer than a year take it with you.

    We have a shed full of stuff being stored away, when we get back to it we'll throw half of it away! Keep it simple, moving is fun
     
  4. samiam

    samiam Well-Known Member

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    we thought about it seriously before we moved overseas (moved 7/8 times in last 6 years). we decided to rent it empty. and it was very painful throwing away/selling out our favourite furnitures.

    depends on where your ppor is. if it is in nice area with potential quality tenants, you would want to rent it out furnished.
    pros
    1. able to keep your stuff
    2. higher rent

    cons
    1. you have to give service too (if problem with fridge/dish washer/washing machine - you (PM) have to fix them.
    2. be careful with "wear and tear", don't expect anybody would look after your stuff like you do. with time, your new stuff will get old and eventually have to rent it out empty.
    3. your market may be limited by waiting for appropriate tenants.
    4. health issues (if bed, mattress included)
     
  5. Perthguy

    Perthguy Well-Known Member

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    Renting it out fully furnished is a good way to get your furniture wrecked... :mad:

    To move, I recommend buying a shipping container and loading it yourself. It's way cheaper than a removalist.

    They still have to move all their stuff.
     
  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    PPORs do not hold you back, you hold you back using your PPOR as an excuse.

    Just do it, furnished, unfurnished, make a decision and do it. It's better to make the wrong decision than procrastinate and make excuses.

    Once you have decided, things become easier because you will just handle things as they arise.
    where are you moving to by the way?
     
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  7. bob shovel

    bob shovel Well-Known Member

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    Also check the numbers but if you plan on buying an ip or 3, renting greatly helps your serviceability. there's a few threads getting around.
     
  8. Jerry O

    Jerry O Well-Known Member Premium Member

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    im sorry to tell you this mate but you are envying your colleagues for the wrong reason. you own a property, and I am assuming they don't and are just happy to keep renting. fast forward 10 years from now, your colleagues will still be happy renting, breaking the lease, and move on with life. You, on the other hand, could potentially have a property with an increased value over time, and possibly accumulated more properties doing the "buying a PPOR, work contract expires, relocates, converts PPOR to IP, buys new PPOR near the new work place. rinse and repeat." i know there's a lot of ways to build a portfolio but if this works for you, then go ahead.
     
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  9. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Buying another PPOR killed my servicability for a while, I did a fair bit of my buying beforehand with proceeds from PPOR sale while renting then bought when I saw Sydney about to boom again.

    The reduced servicing slowed me down a bit, so I focused on buying cashflow positive that put money in my pocket and increased servicing, which allowed me to continue to buy. Thanks to the boom I now have a tonne of equity in my PPOR after 2.5 years, which I am now using to develop.
     
  10. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    I always keep that in mind when buying things for a PPOR, need a new fridge or sofa? why not look on ebay rather than buying new $$$ cause when you want to sell your nice stuff quickly and move on no one wants to give you a decent price. If you bought it cheap you can let it go cheap, easier to move on.
     
  11. aussieB

    aussieB Well-Known Member

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    Thanks for the replies everyone. I think I just need to decide and take action. I am leaning towards taking my stuff with me.

    @Xenia Haven't decided yet. I have a few months to go. Darwin is a small town so not too many IT opportunities. But I like this town. So I may just stay back and start a one person web development firm. May be put up a juice stall in the markets. I dont know at the moment, for sure.

    @Jerry O Thanks for the optimism mate. I really wouldn't have been thinking this way in the foreseeable future. But once someone's talking about it - it looks like what you are talking about can sure be a possibility.

    @Perthguy They have an option of not being attached to the stuff and either can sell it cheaply (since the purchase itself was a cheap one) or throwing it away. OTOH I have had the purchases of bed and fridge and lounge all measured and tailored to make my first home feel like my little paradise.
     
    Xenia likes this.