Investment or PPOR?

Hi all,
I was wondering if to purchase an IP or PPOR given I have 100k in savings. If buying PPOR what suburbs would you guys suggest considering I am currently living in Campsie. Thanks

 

Depends on if you want to live in your own home.

 

Thanks for your reply. What is better buying a 2 bed unit closer to CBD or a house and land package?

 

The criteria for purchasing an IP or a PPOR are vastly different. If you are looking for an IP you would be focusing on purchasing for capital growth and/or cash flow. While looking for a PPOR would be purely down to where you want to live and what type of housing you prefer. Therefore, It is very difficult to provide advice without understanding whether you want an IP or PPOR. Moreover, clarifying your goals, circumstances, budget would help in providing more specific advice instead of generalisations.

 

Doesn't really matter to me as I would be more than happy and proud to have my own place to live.. what would be pros of owning any one of those options??

 

Thanks for your reply Branden. Well to be honest I am totally clueless. I was advised that I can borrow something around 650-700k . And when asked what would be better option whether to buy first ppor or IP, broker I consulted suggested me to buy ppor first so that I can get the benefits of not paying stamp duty in first place and buy IP down the line in few years when I save enough..

 

Depends on your current living arrangements, income, would you rent a room ?

 

I think you need to clarify your goals in order to provide yourself with some clarity. What would you like to achieve financially in the short, medium, and long term? Your goal doesn't have to explicit (although this helps) but you want to identify a rough idea of what you want to achieve. In doing so, you can then reverse engineer a plan to achieve your goal. If you simply want to own a home then purchasing a PPOR maybe your best option. Although, If you wanting to build wealth maybe you should consider an IP first. Your broker has suggested a reasonable option but it isn't your only option nor is it necessarily your best option if your focus is wealth creation.

 

... and not to confuse things, one can buy a PPOR that later becomes an IP and/or one can buy an IP that becomes one’s PPOR.

I have done both.

Exactly.

Otherwise it is like heading off on Summer Holidays and having no idea where one is going.

One is a the end of one’s driveway and one doesn’t know whether to turn right or left.

 

Well my first idea of buying a property was to buy an IP. but my broker changed my mind. If I have to spend 300k for instance what places would be best to invest in?

 

If I have budget of not spending more than 450-550k to buy 2bhk unit where would be best option to buy today?? I live in Campsie at the moment.. Thanks

 

I am assuming you mean 300k purchase price? If so, you would be limited to the outskirts of metro cities like Adelaide, Brisbane, and Perth or regional areas. I like this price point as it usually provides relatively good yields making it easier to hold properties. Although, due to the movement in the market recently it has become harder to find a property at this price point that still has a decent locality and demand.

 

What are the best options in that case? What areas have high capital growth and better yields at the moment? Yeah, definitely market has soared up a lot imo.

 

At the moment , it is just two of us , me and my wife and currently renting. I do not have any problem renting. We are not planning to have any kids at least for another 3-4 years. We just have a combined income of 110k as she is still studying. Whatever I do, this will be my first property.

 

I would really appreciate that. I may or may not be able to afford to purchase an IP in Melbourne but I would love to hear some insight for my future references. Thanks

 

thanks for your help .