Looking forward.................

Discussion in 'Investment Strategy' started by Stoffo, 21st Jul, 2016.

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  1. Stoffo

    Stoffo Well-Known Member

    14th Jul, 2016
    Down/up sizing.....

    Hi all :)
    Am most likely not alone here, most people when they have nothing else occupying their minds dream ?
    I run scenarios through my head, (maybe that plant will look better over there/ that lawn will need mowing in 3 days/ how can I buy another IP & where/ where will I retire to/ these damn flies ! :confused: )

    My latest thoughts have been taking me down the path from having kids at home to them getting older and starting their own lives :rolleyes: "one day".

    These thoughts have me choosing to buy an IP to eventually move into as PPOR when that time (hopefully) comes :D

    Anyone else actually structured there IP purchase with this in mind, or done it :cool:

    Pitfalls, tax implications ?
  2. ellejay

    ellejay Well-Known Member

    19th Jun, 2015
    Kimberley and NZ
    My experience of this is that you end up buying something that isn't the best choice for an IP, retirement (if that's what you're talking about) locations can have relatively expensive homes that don't always command the highest rents. You can end up sucking up the compromises for a few years. The dream home for retirement may not look quite so great after tenants have occupied it for a few years. Your choice of desired retirement destination may change completely over the years. You may eventually move into it and find it's not what you dreamed of all those years and you end up buying something else anyway. In my case I'm not sure if we'll even ever move into said future retirement home. Personally I'd just buy IPs, make as much money as possible and buy your dream retirement place when you're pretty much ready to move into it.
  3. drg86

    drg86 Well-Known Member

    25th Jun, 2015
    I'm like you, always running scenarios in my head, planning for the future.

    I have thought about getting an IP in a few years time that is close to the beach to lock in the land for a future PPOR build. My parents did this about 25 years ago bought an IP for about 200k, beach view nice street etc. Rented it for 20 years until funds were available to knock down rebuild. At start of new build land was worth 1 mil alone, so saved them 800k compared to buying at the later date plus tenants rent paid off the house over those 20 years and there was some extra cash flow.

    For me I have it planned in stages, the next stage is the PPOR Nest. A home we will be happy to stay in for 5-10 years while we start a family. It is close to schools and shops, will have some of the things we want, such as large master suite and large garage/workshop to keep me sane:D

    Next would be PPOR Upgrade, then PPOR Dream when the kids are adults.

    So in answer to your question, yes, I would structure a future IP purchase as a PPOR. Not every purchase from now as I plan to diversify in to other states etc, but 1 or 2 if the opportunity is there.
    Stoffo and Cactus like this.
  4. Dan Donoghue

    Dan Donoghue Well-Known Member

    19th Jun, 2015
    Gold Coast, QLD
    This is what I used to want to do but I was then asked why I was doing it.

    When I thought about it, I would be buying a place that I want today, in 10 years I might not like it AND it would be 10 years older than the dream home I bought, it would also become an emotional decision as I would need to see myself living in it.

    The question was posed "Why not buy IP's in areas that stand to make a much better return then use those to fund your dream home when the time for retirement comes."