Join Australia's most dynamic and respected property investment community

Duplex for PPOR? Anything I've missed?

Discussion in 'General Property Chat' started by hammer, 12th Jul, 2016.

  1. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    423
    Location:
    Darwin
    Thinking about a cheap 2 bedroom, 1 bathroom duplex (350k) as a PPOR (Only buying 1 half).

    In a great area with 250m2 on title. No Body Corp and has just be re-roofed and new hot water.

    The logic here would be that we smash the loan in the first 2 years. After which the property will be positively geared should we decide to move, or much less than equivalent renting should we decide to stay.

    The other alternative is that we buy a small house (3x2) much further out.

    We can live in both..no kids. We're currently renting a duplex nearby.

    Neighbours are wonderful and only there for 6 months of the year.

    Worth mentioning that I'm in Darwin...capital growth will be flat or negative over the next 5 years.

    It seems on paper like a sensible way to go......is there anything that I've missed?

    Anyone have experience with these types of properties?
     
  2. standtall

    standtall Well-Known Member

    Joined:
    19th Oct, 2015
    Posts:
    273
    Location:
    Sydney, NSW
    Talk to a tax expert. Don't smash the loan when you can deduct the interest repayments after turning it into an IP.
     
  3. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,124
    Location:
    FNQ
    An interest only loan with offset so you still have funds for a deposit when you upgrade to a bigger ppor therefore minimizing OO debt.

    Lack of control is the main concern, what if terrible tenants move in next door or the new owner doesn't maintain his/her side if the property?
    With a house or even a whole duplex you have control.