Buy PPOR or Investment

Discussion in 'What to buy' started by majj34, 25th Feb, 2020.

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  1. majj34

    majj34 Member

    Joined:
    25th Mar, 2017
    Posts:
    10
    Location:
    Nsw
    Hi Everyone, I am a long term lurker here. Recently got married and currently have two options (Both my wife and myself). We are either able to purchase a PPOR in Syd around the Hills for 1.2-1.4, or we can rent and invest our money save (around 160k) in 2 investment properties in North Brisbane.

    The First option would be to hopefully purchase on a large block where there is zoning to potentially sell for more in the future and build up some equity.

    The Second option would be to aim to purchase something under value with a neutral to positive cashflow that would also have some sort of capital growth in the coming 5 years. (Preferably in middle ring Brisbane, owner occupier type area and which some value can be added)

    Bit confused on what would be the better route to take.

    Any advice is appreciated.

    Thanks
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,018
    Location:
    Perth, WA
    You're not fussed about getting a PPOR ever?
     
    korando1234 likes this.
  3. New Town

    New Town Well-Known Member

    Joined:
    8th Sep, 2015
    Posts:
    535
    Location:
    QLD & NSW
    I would say far more positives with a PPR - peace of mind, control of your domain, stability, benefits of commitment, status, and likely better DD undertaken and hopefully price increases.

    Renting where you live and ownership of resi property investments have their own negatives associated with each.

    That said Sydney is overpriced to buggary... sorry

    The ability to refinance a PPR to purchase IPs in the future, with all the tax benefits, is too good to refuse.

    I wouldn't worry about subdivision potential as it will severely limit the properties available to you at the moment, and you'll probably get it wrong and probably pay too much and probably never do it ... sorry again :):oops:
     
  4. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,198
    Location:
    Perth WA
    Hi @majj34 Welcome to the forums :)

    What's going to be best is definitely going to depend a lot on your long term plans and priorities...and when it's PPOR v investing, it's tricky because it's wealth creation vs emotional factors...

    And even though you CAN combine both, it tends to become messy and you either end up in a PPOR you don't enjoy, or an INV that doesn't perform well.

    At the end of the day, a clear idea about what your long term goals are is going to make all the difference.