Plan for a PPOR, start with IP's ?

Discussion in 'Investment Strategy' started by springmoth, 17th May, 2017.

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  1. springmoth

    springmoth New Member

    Joined:
    17th May, 2017
    Posts:
    1
    Location:
    Sydney
    Greetings (newbie alert here)!

    Wanted to check with more experienced folks here, whether this strategy is sane, or if there are others ways we should be going about this.

    Some background:
    - We're in our early thirties
    - Combined income of ~$300k pre tax ex super, living costs/spending is $110k pa
    - Have current (released) equity of $230k in our property.
    - Other liquid assets of $180k
    - No IP's so far

    Goal:
    - Medium/short term goal is to enable us to get into a PPOR in the next 3-4 years. Prices in Sydney are high, and we would be looking at spending $1.4-1.5m then (sad face).
    - Longer term goal of 15-20 years is to have a steady income on a healthy portfolio.

    I feel like we have been behind the curve - in terms of investment age (we are getting older!) and even though we have thought about getting an IP for a long time, never made the conscious effort needed to go through with it. Over the past few months, I have been reading up, listening to excellent podcasts out there, and reading some of the wisdom imparted in the 'where to buy' threads :)

    We have settled on an area, and have engaged a buyers agent for our first IP already. The plan is to get 3 or perhaps up to 4 IP's on me and/or my wife's name, and use the equity generated over the next 3-4 years, or sell our current PPOR, or use some of the liquid cash available to fund the 20% deposit for our next PPOR (or perhaps do a combination of the three).

    Where I am getting confused is, in the Sydney market - would it make more sense to buy the PPOR now, use it as an investment vehicle till we are ready to move in to it? Is the heavy reliance on CG to help us fund our new PPOR a good strategy overall?

    Appreciate any feedback, thoughts, comments. We have worked hard to be in the current position we are in, and fortunate to have a (small) foot in to the Sydney market! I would like to ensure we are on the right track overall.
     
    springmoth, 17th May, 2017
    #1
  2. Terry_w

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

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    Location:
    Australia wide
    Terry_w, 17th May, 2017
    #2
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