FHB - PPOR in Sydney or IP in Melbourne

Discussion in 'Where to Buy' started by SydneytoMelbourne, 11th Jan, 2020.

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  1. SydneytoMelbourne

    SydneytoMelbourne Well-Known Member

    Joined:
    10th Jan, 2020
    Posts:
    49
    Location:
    Sydney
    My partner and I are ready to buy our first property. I'm from Melbourne originally, but we live in Sydney.

    We were looking around the $750-$850k mark in Sydney as a PPOR, but we really wanted a townhouse / house, and unless we moved quite far out (which would defeat the purpose of us living in Sydney) this is obviously extremely difficult (if not nearly impossible). At this price point we'd get little stamp duty benefit for FHB.

    We're now toying with the idea of rentvesting. After running the numbers we think we can afford a IP of around $600-$750k.

    Given we want some land, we're focusing on Melbourne's inner north (Coburg, Pascoe Vale, pockets of Preston around there). We are looking at a 2 (or if possible, but understand more difficult 3) bedroom townhouses, as we want something that we might want to move into in a few years time and as we don't want to have children, these types of property are perfect for us. I'd love to be in Northcote, Brunswick, Thornbury ideally but understand that these are probably out of our price range at the moment as an IP.

    I have family who live not too far from there and are happy to go to inspections for us, which should make the process a bit easier.

    Keen to understand whether anything here jumps out as a red flag in particular:

    1) Buying an IP before a PPOR
    2) Buying an IP interstate (even though it's my home state)
    2) The areas we're looking at buying
     
  2. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    1,387
    Location:
    Sydney NSW
    I can't really comment on the specific areas (hopefully plenty of opinions from others), but plenty of people enter the market with an IP before a PPOR, and many of them happen interstate.

    If I were in your position I'd be buying with strategic intent - make sure the numbers work in terms of renting vs. buying and that you're buying where there is better long term growth prospects. Sounds like you've already given it good thought, just looking for validation?
     
  3. Trainee

    Trainee Well-Known Member

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    Location:
    Australia
    And then what will you do about long term accomodation in sydney?
     
  4. Westie

    Westie Well-Known Member

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    19th Jun, 2017
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    1,104
    Location:
    Melbourne
    Nothing jumps out of any of the 3 points you've listed. Preston and Rezza have been discussed in numerous threads, I recommend you search for and read through them on where to buy, where to avoid etc. I don't know a lot about Coburg, some pockets of Coburg North are cheaper and have trains and trams if you want PT. I suggest buying away from the main roads.
     
  5. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    11,394
    Location:
    Melbourne
    Why not get that bit sorted out first?

    The Y-man
     

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