how do I figure out benefits of renting vs living in ppor?

Discussion in 'Investment Strategy' started by Johnny Cashflow, 20th May, 2017.

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  1. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    How much better financially am I living in PPOR vs renting ?

    How do I work it out?
     
    Johnny Cashflow, 20th May, 2017
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  2. jaybean

    jaybean Well-Known Member

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    jaybean, 20th May, 2017
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Work out the cost of the IP after tax.
    Compare this to the rent you are paying.

    Then factor in rent increases and capital growth.
     
    Terry_w, 20th May, 2017
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  4. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    Thanks I had a read. It really is dependent on a lot of variables not as straight forward as I thought. Need to make a spreadsheet and work it out I think.
     
    Johnny Cashflow, 20th May, 2017
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  5. jaybean

    jaybean Well-Known Member

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    I don't think so. Depreciation is going to be high or low if you buy old vs new. Then there's income to deduct against. Ultimately it's a prettty straight forward calc imo.
     
    jaybean, 20th May, 2017
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  6. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    So depreciation is the main tax benefit?
     
    Johnny Cashflow, 20th May, 2017
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  7. jaybean

    jaybean Well-Known Member

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    Not sure. All I'm saying is there aren't that many levers. It's not super complex to run this across your personal scenario.
     
    jaybean, 20th May, 2017
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