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First home buyer - IP or PPOR

Discussion in 'General Property Chat' started by lateboomer, 8th Sep, 2015.

  1. lateboomer

    lateboomer New Member

    8th Sep, 2015
    I'm looking at purchasing my first property next year. I'm on 75k/pa (excluding super) and will have approximately $125k in savings by year end. I am undecided whether to purchase an IP or PPOR. I currently work/rent in Melbourne CBD and would love to continue doing so. However, this would mean I will have to go the IP route and at 75k/pa, I'll probably have to settle for a more affordable IP place (possibly at 300k-ish) so that I can service the mortgage and pay rent for a city pad ($1.5k/month) at the same time. Therefore, I'm inclined to purchase a PPOR. If it is PPOR, I am looking for a place (possibly villa or unit with 2 bedrooms - will consider 1 bedroom too) around $400k ($500k max) with a short commute to the CBD (possibly inner west - loved Yarraville). Am I doing the "right" thing by going the PPOR route? Thanks in advance.
    Last edited: 8th Sep, 2015
  2. eastsider

    eastsider Member

    2nd Aug, 2015
    It depends on how much you like your current life style. Living and working in the city means your travel time is a 10 minute walk to work or a 2 minute tram ride. Living out in the suburbs will increase your travel time to 30 mins each way by public transport and possibly longer in a car. If you don't care about travel time then its time to develop a new lifestyle out in the suburbs. Paying off your own property is better than paying off someone elses....
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    19th Jun, 2015
    At the end of the day it is a personal choice. Many Gen Y's will rent in the city close to their workplace as a life-style choice and invest in an IP in the 'burbs so they have a foot-hold in the market and take advantage of any tax benefits and depreciation available to them by so-doing.