QLD Future PPOR on Sunshine Coast or Brisbane IP for next purchase?

In 7 years (2028) we are planning on retiring to the Sunshine Coast.

We have 2 IPs there now, and are preparing to purchase our 3rd IP (budget up to $900k).

We are debating whether to:

• Purchase what will become our PPOR at the time we move up there (a property as north of the river as possible, north of Coolum would be great but unlikely at this budget) - either 3 bedroom 2 bath apartment with (hopefully) some water views from lounge/balcony, or a free-standing home away from the water but close enough) OR
• The best IP with the best CG we can find, probably near the water north of Brisbane City, which we can then sell to finance out PPOR purchase in 7 years.

We have thought about whether we can make the 6 year rule work for us on the PPOR to avoid CGT, but are unlikely to be able to live in it for the first 12 months.

The Brisbane IP purchase will have CGT when we sell and 2 lots of stamp duty when we buy the Brisbane IP now and the PPOR in 7 years, so it will have to grow significantly greater than the alternative future PPOR, and allow us to buy a better PPOR in 7 years than we could buy now to make it worthwhile.

We are leaning towards the future PPOR purchase, even if we can't avoid CGT as there will be no sale then purchase costs and uncertainty about growth making up the difference and greater return.

Would love the thoughts of the more experienced Brisbane and Sunshine Coast investors here.

Thanks in advance.

 

If you are set on moving up there in 7 years' time it would make sense to buy an investment that also could serve as a PPOR in the future. Although, a lot can happen in 7 years and you may change your mind. So maybe focusing on the investment criteria first then seeing if this aligns with your PPOR criteria will serve you best.

 

The purchase on the SC seems preferable as:
- Northern Brisbane isn’t necessarily going to have more CG than the SC, and you may find yourself priced out of the SC market if you were relying on the proceeds of the sale on the Brisbane property.
- no CGT to pay (well until much further down the track after least)
- no selling fees to pay
- only one round of stamp duty payable
In summary, the northern Brisbane market would have to do considerably better than the SC for you to come out on top by buying in Northern Brisbane.

The cons of buying the SC property now is that what you think you want in 8 years time might not be what you actually want in 8 years time.

Also as you say, $900k doesn’t buy a lot in the northern part of the SC (right next to the beach at least) but perhaps you could buy something that needs a bit of work and do the renovation when you retire. This would also allow you to make it a bit more tailored to what you want at the time.

 

Thanks @Firefly99 , think this is what we'll have to do. May have to look at BA to find a few as we're unlikely to leave Sydney for some time :-(