PPOR search curve ball... fiancee has left me - still buy PPOR for later in life?

You may remember from a few previous threads I'm a 'rent-vestor' looking for my first PPOR family home in the outer east suburbs of Melbourne, focusing in on the Upwey/Tecoma/Belgrave areas, at around the 800k mark.

Life has given me some lemons - my fiancee left me last week. Naturally I'm a little shaken up, hurt and lost. There is a chance we can make it work down the track, although I'd say it's over.

Now, I'm approaching 40, and currently renting in Inner Melb. I currently have 3x IPs in outer SE Melb which is pretty hot at the moment (thanks FHOG). To buy in Upwey I would have had to sell one or two of these.

While it's crystal ball gazing my property advisory company (who previous said Melb houses are approaching a peak / affordability issues) now also say Melb could potentially out grow and out price Sydney over the next decade or so, and that it might be wiser to secure a foothold into the market. They say Upwey will be +$50k in another 12 months from now, and good growth the following 12 months.

Obviously I need some time out to think through things, although I'm wondering, should I still proceed with this PPOR hunt and purchase, potentially live in it for a while (to get the CGT exemption) then rent it out as an IP initially and continue to rent in St Kilda whilst single with a view to moving into Upwey sometime down the track whenever I am ready for the family home?

I figured I'd be able to grab 2 years of growth, pay down the loan while it's tax deductible debt and can re-paint/re-carpet/etc whenever I move in. If I don't move in, then all I have really done is shifted around my holdings in the outer E / SE (minus transaction costs).

I really do love the Hills (Dandenong Ranges) as an area, and do plan to live there at some stage in my life.

 

I’d suggest you do nothing while you’re still emotional about your personal situation. I’m not sure that Melbourne will do a whole lot in the next few years that you are going to miss out on. Neither do I see it outpacing Sydney over the next decade (for the first time ever). Sorry to hear your news.

 

I also would give yourself some time to process, and don't make any big financial decisions right now.

 

I'm sorry your relationship has faltered. I'm not sure what you should do but I do think having a home base is a good thing for people and worth aiming for. When someone special comes into your life in the future they will appreciate that you have that.

 

I say go for it. Buy in Upwey/Tecoma etc. Either way its always good to have somewhere to live one day, and atleast if you buy now you will not have regrets 2 years later thinking, I wish I bought then! I think Melb has atleast another 12 mths of fair growth, if not good growth.
There has never been a time in the past 10 years where I would have been happy if I had not bought, every purchase I am relieved that I did it, otherwise I would have a lot of regret. We even purchased during the GFC and no regrets. Plus, it might be a good distraction to give you something to focus your energy on and throw yourself into rather than moping about your ex! Good luck

 

Sorry to hear about your breakup. I would be thinking hold onto your IPs and maybe wait to buy an ppor as your next partner might need/want to live somewhere else .If you're based in st Kilda I suspect it would widen your potential dating pool being quite central. All the best .

Btw who is your property advisor?

 

I'm sorry to hear about your fiancée, and suspect that you're not feeling great there.

As for your investment company's forecast, the best response is a saying variously attributed to Niels Bohr, Mark Twain, or Yogi Berra: Prediction is very difficult, especially about the future.

Here's a suggestion for your property hunt: Keep an eye on your chosen suburbs, but be super selective.

We're in a slowing market here in Melbourne, so I wouldn't expect prices to run away in the next year or two. You weren't seeing much in the Dandenong Ranges that excited you a few weeks ago, so I'm guessing stock is thin. And St Kilda probably suits your circumstances better that being out that way.

If something comes up that you think is a fantastic deal, then go for it. Otherwise, don't bother.

Beyond that, I hope that things work out for you. Just don't come to me for advice about relationships, because it'll be worse than my investment tips.

 

So much better being single in the inner city than out in the sticks, stay where you are until you've found someone to buy a family home with.

 

here's some free advice ...
Get yourself in shape at the gym, buy a PPR house in a trendy area (maybe not so far out?), go speed dating.

Owning a house shows you're not afraid of commitment and the IP's show you have means. So very eligible, good for you!

 

I'm working with a guy called Heath from Performance Property Advisory.

 

Or, even better, only go out with people who already have bought a PPOR .

You end up with the best of both worlds .

 

Maybe..
If I were to hit the dating scene again, I wouldn't mention my assets until much later into the relationship.

 

For a moment I thought your post was an advertorial for a country song...

Sorry to hear about your woes...but in my opinion youse would be crazy to buy in the areas mentioned....wait it out and keep the power dry...

Anyway this bloke got a few words of advice....if you are gambler you to got know when to hold 'em when to fold....because in every hands a winner.......but don't start drinkin' like he does...

 

Thank your lucky stars that she didnt get her claws into your ips....

 

I think that would depend on how LARGE your assets are ...

 

@sash is that because of the market timing or the area in general?

I thought it was pretty hot right now, perhaps another 1-2 years of growth left and then it will probably stagnate for a few years - but if it's a PPOR and you want to own a home for a family, wouldn't you just buy when you need to (more or less) and focus on timing of IPs?

 

Nah...it could come off 80-100k...why not live where you want to live.

Besides...you need to take time out.....you might want get back on the horse and live somewhere like St Kilda or Eltstewock...where all the single ladies are.

 

Yeah OK. So you're guessing a 10% or so drop in Melb's outer burbs, I'm assuming over a 2-3 year period? 2018 - 2021?

 

No, wouldn't mention IP's (or money in general) at any initial meet up, wouldn't be cool. Of course finances are important so probably want the conversation not to be pushed too far along the relationship

 

And never mention your liabilities