Hi All, My names Jarred and im 21 living in Perth and looking to by my first PPOR in the comming months and am looking to build a property investment portfolio in the future. So any advice or help for a property newbie would be great and i look forward to contributing to the fourms in the future.
Hi Jess nice to meet you and im currently looking predominantly north of the river for established units or townhouses within 10km of the CBD. Budget of $400,000 Thanks
Welcome on board! Good to see a lot of young folk signing up. First step is read. Read everything on this forum to start. It will boggle your mind and make you question everything you think you know. Once you are sufficently confused you will start to understand. My first question is at 21 - why a PPOR? What do you do (for a living?) Blacky
Hi Blacky thanks for the advice and i shall start confusing myself right away ahaha!. I'm a full time Police Officer and i guess I'm looking for a PPOR as it feels like a natural first step to get out of home (living with parents). Cheers
Jarred Look up "rentvesting". Basically its investing in IP(s) while you rent your own place. Esspecially as a cop relocation is possible (likely?). You get to increase your income, reduce your expenses and get to move out and also purchase your first property. Read up some more in regards to the best order to do things in. I dont know what (if any) first home buyer grants you may be eligible for which may cover a good portion of your initial costs. Might be best to move into the property for 12months, and then rent elswhere and rent the PPOR out. If you buy your PPOR first it may limit you on future purchases. Make sure you get the correct loan structure up front (ask Jess about that). Also - stay with your folks for as long as possible. You will miss all the free stuff from them when you move out (they may not feel the same - dont feel bad!) Blacky p.s kind of creepy getting a notification saying "you are now being followed by a police officer"
Thats some great advice Blackey and i have only heard briefly about rentvesting but its certainly a viable option. And i will have to touch base with Jess and speak to her regarding possible loan structures. Ahahah I'm sure there could be alot more creepier people following you than a police officer .
Depending how much you have saved for a deposit, it may be worthwhile doing the FHB thing first, as the duty saving can help you get into the market more quickly. Yo only have to live in it 6 months to qualify. And you can rent it out for the first 11 while you save your next deposit living with your folk
Exactly i agree Jess. I'm looking to loan at about 90% LVR (parents unble to facilitate as a guarantor ) and if i purchase an established home under 400,000 i will have my stamp duty covered and settlement fees covered by the Govt sponsored entity REBA. So id aim to purchase the property as a PPOR and look into renting it out after 6 months to help built equity to purchase a second property.
My advice would be to seriously start your portfolio first, and work towards that ppor. Or as stated, use the fhog, live in it first then rent out. This will keep your first ip cg tax free for up to 6 years. This gives you options to move around, change states, jobs, holiday whatever suits. It will give you a massive head start on your journey and not limit future purchases. If you must have that ppor first, look at something you can add value to on your journey. Subdivide, reno, extension etc to give you that boost in the future. Hope this helps.
Yeah they both seem to have there pros and cons inregards to purchasing the first property as a PPOR or IP. Thanks for the advice its greatly appreciated.
