PPOR strategies

Discussion in 'Investment Strategy' started by Jess Peletier, 27th Oct, 2015.

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  1. Perthguy

    Perthguy Well-Known Member

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    Aww... don't mock the shipping container/backyard option. They are doing some really cool shipping container type granny flats now...

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    Perthguy, 28th Oct, 2015
    #41
    Barny and bob shovel like this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Love that top one!
     
    Jess Peletier, 28th Oct, 2015
    #42
  3. Sashatheman

    Sashatheman Well-Known Member

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    Why would option 2 give you more cash though? Wouldn't the rent payments reduce any savings you make in interest repayments?
     
    Sashatheman, 28th Oct, 2015
    #43
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    @Sashatheman It's not necessarily about more cash in your pocket, but about being able to borrow more.
    However, often it's cheaper to rent where you'd like to live than it is to pay a mortgage, so there can be cash savings too.
     
    Jess Peletier, 28th Oct, 2015
    #44
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  5. febstyle

    febstyle Member

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    I should start another thread, instead of hijacking Jess' post, and start a poll on what people's view are :p
     
    febstyle, 28th Oct, 2015
    #45
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The other thing that @Jess Peletier mentioned is using your PPOR status to your advantage. If APRA has you stuffed and you want one of those pretty PPOR reduced interest rate loans think outside the square and consider

    1. Buy a splitter block and live in front house and sell off rear block to reduce your PPOR debt. Seek advice from an accountant but I believe selling off the rear block is CGT free as it is 'realising an asset' or something like that
    2. Buy a splitter block and reno the front PPOR house whilst living in it whilst building a new house in the rear. Sell off the front PPOR renovated house CGT free and move into rear new built - later on sell rear house CGT free - or rent it out and rake in the lovely depreciations and move onto another reno/split/build PPOR project
    3. Move out of your PPOR and rent it out for up to 6yrs and go rent somewhere even nicer - in Perth you can get a lot of money for your rental dollar. Just remember to move back before 6yrs is up to keep your PPOR CGT free status
    move to the western suburbs http://www.realestate.com.au/property-house-wa-mount+claremont-416968542
    give your kids a tree change http://www.realestate.com.au/property-house-wa-millendon-416800153
    enjoy the ocean http://www.realestate.com.au/property-house-wa-north+coogee-416938642
    walk to work http://www.realestate.com.au/property-apartment-wa-east+perth-416901206
     
    Westminster, 28th Oct, 2015
    #46
    samiam, Perthguy, JohnPropChat and 1 other person like this.
  7. Terry_w

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

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    Terry_w, 28th Oct, 2015
    #47
    samiam and Perthguy like this.
  8. Sonamic

    Sonamic Well-Known Member

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    290k IO Loan on my PPOR is cheaper than $450 a week rent. The extra $ saved goes into the next PPOR upgrade fund. Buy new PPOR when funds allow, current PPOR becomes an IP. Have done this several times. When IP rent increases enough to cover new repayments on an Equity Draw, I take that Equity as a Deposit and build a new IP. It's slow, but working for me. No negative gearing yet.
     
    Sonamic, 28th Oct, 2015
    #48
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  9. Bayview

    Bayview Well-Known Member

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    It definitely will; as long as everyone k eeps paying their rents and stay mates.
     
    Bayview, 30th Oct, 2015
    #49
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