Second property to be PPR

Discussion in 'Investment Strategy' started by Fairandsquare, 29th Oct, 2019.

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  1. Fairandsquare

    Fairandsquare New Member

    29th Oct, 2019
    I have a property in a good location in Melbourne, on a decent size block (just over 1/4 of an acre). It is an older 1970's home and I bought it when it had a lovely rural view and was surrounded by paddocks. The area has been developed and it is now amongst very large homes (many with tennis courts, pools and so forth) on one acre blocks. I lived in the home for a year when I first purchased it however due to work and family commitments moved out about 10 years ago and have rented the property out. It appears as though I may not be moving back in the near future and am tired of renting myself. I am very reluctant to sell the property so I can buy something for myself and son to live in and so am thinking perhaps of buying a second property to use as our PPR. Problem, as it often is, is limited funds. I can probably only afford (at a stretch) to spend $400 which really limits options. I live not far from a popular coastal town and can see that a two bedroom resort apartment would be within this budget. My instincts are telling me that capital gains on such a property would not be good should I sell in the future although the lifestyle looks appealing. There are also very small houses in the new estates near by but to be honest I can't see myself living in one of these. I would like to try to establish myself so we have a reasonable lifestyle whilst also ensuring making good financial decisions. I would appreciate any thoughts. Many thanks.