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Discussion in 'Property Market Economics' started by Be Developer, 4th Jul, 2015.

  1. Be Developer

    Be Developer Property Developer Business Member

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  2. jins13

    jins13 Well-Known Member

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    If I didn't purchase my PPOR in 2011 when the market was abit more timid than now, I think my strategy would be the same- Forgo buying a PPOR, to purchase an IP. Be good to have more deductibles for my tax return. My sister in law did that because she was waiting for a long time to buy a PPOR and kept getting outgunned in auctions.
     
  3. MJS1034

    MJS1034 Well-Known Member

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    Yep :) just purchased my first property Which will be an IP, hopefully one more IP before a PPOR then plenty more IPs to follow.

    Well that's the plan anyway haha
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I think it's a great idea. If you're going this way though it's really important to structure your finances correctly.

    Structuring it poorly will see you with 100% debt on your PPOR when the time comes, with too much cash tied up in IP's. This can cost thousands in lost deductions.
     
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  5. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    I'll be contributing to that statistic in a month or two!
     
  6. thatbum

    thatbum Well-Known Member

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    No PPOR and five IPs in. To be honest, I'm not sure I could afford to live in any of my properties.

    Low income property investing right here.
     
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  7. WattleIdo

    WattleIdo renovating Premium Member

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    Kind of, yes. I'm renting and have been for the last 4 years. Lived in my first place but renting it out now.
     
  8. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    Another in the renting but investing boat. Not for much longer. Sick of it.
     
  9. Big Red

    Big Red Well-Known Member

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    I am curious to know if the multiple IP strategies are mainly IO strategies or combination of IO and PI?
     
  10. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It depends on the individual, but mostly I'd suggest IO for anyone who is good with their money. There are so many wealth creating benefits to the wise use of IO that P&I rarely makes better sense.
     
  11. Big Red

    Big Red Well-Known Member

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    Good point there. Assuming people don't waste money and actually use the offset account.
     
  12. Mick C

    Mick C Well-Known Member

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    Join the partyyyyy boat :)
    More like titanic...

    Last 2 years i think i written x100 times more IP loans compared to PPOR loan...everyone wants to be an investor and live at home or rent.

    Reason why the rental market is so bad....buy rent out, buy rent out....

    Most like 9/10 will be on a I/O loan structure...very rare to see P./I on a Multiple IP buyer ( muti = More than 6) as their income is not high enough to support the Principle as welll...on 6+ properties anyway.


    As long as ppl are financial smart and dont gamble their offset away.,..and keep a good healthy CASH buffer + buy in a decent area with a mix of CG it's ok.
     
  13. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Im on the boat. Suits my strategy at this point in time during my aquisition phase. But may change in the future.