First Home Buyers landlords

Interesting Numbers

http://m.smh.com.au/money/insight/t...yer-landlord-20150630-ghwgan?skin=smart-phone

I am one of them.

No PPoR ..enough IPs

Are you in a same boat?

 

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.

 

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

 

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.

 

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

 

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.

 

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

 

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

 

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

 

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.

 

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

 

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.

 

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

 

Hi Jess,
Bit of an old post now but any chance you can compare today's numbers with 2015 - how many first home buyers are landlord? or how many today are investing in more than 1 property?

 

Hi! I'm seeing more first time buyers buying established with max loan possible (smallest deposit), renovating and then upgrading their home. This gives them good bang for buck leverage-wise with their IP, increased cashflow and manufactured gains but also leaves them with enough cash to put down a decent deposit on their home.

We're still doing HEAPS of multi-property deals - it's just people tend ot cap out at 3 with the major lenders and not everyone has the risk appetite for more given the significant increase in risk it involves.

We're seeing more active investment rather than buy and hold to compensate.

 

Multi property deals?
Negative growth in last 1-2 years (Sydney & Melbourne) and forecast still negative, i am assuming these are cash deposits, up-sizing/downsizing or people who have bought way before the boom started in 2013?

 

Lots of people still accessing equity and investing - either in shares or property. Lots of newcomers to the market too, and existing investors who aren't over-leveraged.