have been rentvesting. Now to covert IP to PPR or buy another place using equity?

Discussion in 'Investment Strategy' started by A101, 2nd May, 2022.

Join Australia's most dynamic and respected property investment community
  1. A101

    A101 Member

    Joined:
    29th May, 2021
    Posts:
    13
    Location:
    Brisbane
    Hi, I'm after some advice. I've been living with my long term partner (not paying much in living costs) and last year bought a house in North Brisbane as an IP. I put a 25% deposit down (excluding 22k purchasing costs). I have good tenants and the rent pretty much covers the mortgage (P and I repayments on a 5yr fixed loan). I have made approx 100k equity since buying. Unfortunately my relationship has broken down and so now I need to decide if I move into the house (it's a bit further out than I'd like to live but i would if it financially made sense and whilst the repayments would be at my upper limit I can afford them and may consider finding a flatmate) or whether I buy a unit or cheaper townhouse closer to the city using the equity to make my PPR (probably can purchase up to 500k using equity plus I have some more cash savings of about 30k if needed). My only worry is the current IP will continue to have good growth and my GCT will be high once I sell and the unit or townhouse might not grow as well. Eventually I'd like to purchase a house with land to live in closer to the city but for now i know I missed the boat on that (tough lesson!) so it might be a while yet. Thanks is advance!