Sell one of your three IP's to fund PPOR

Discussion in 'Investment Strategy' started by Hot Jam Donuts, 6th Apr, 2021.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    Also remember a house on a decent block - even 500sqm - will go up in value over the coming years. A new build will date very quickly, and you will not be able to take advantage of the depreciation (head over heart thing I know).

    An older place with a major reno can do wonders, and still keep your costs below a shiny newer thing.

    The Y-man
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    We are in the midst of converting to cashflow via comm prop trusts

    Hi from The Y-man

    The Y-man
     
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  3. Hot Jam Donuts

    Hot Jam Donuts Active Member

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    Well I wish you all the best. I have no idea what that is but it must be promising or else you wouldn't be pursuing it.
     
  4. Hot Jam Donuts

    Hot Jam Donuts Active Member

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    I am hooked on your story and still in the middle of reading it. So many ups and downs! I'm going back to your journey....
     
  5. Hot Jam Donuts

    Hot Jam Donuts Active Member

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    I have thought about Reno on the older tired blocks also. I'm no good at the home improvement game. I have no vision. I think I could do it, but would get ripped off with tradies taking advantage of my ignorance. It's doable, just a pain in the arse.
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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  7. Hot Jam Donuts

    Hot Jam Donuts Active Member

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    Thanks for the invite! Many years ago I almost made it to one of the meets at the local pub. Almost! Damn kids always throw a spanner in the best laid plans:confused:
    I live surprisingly close to the meet point, looking forward to it:).
     
  8. The Y-man

    The Y-man Moderator Staff Member

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  9. MWI

    MWI Well-Known Member

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    I like @Y-man approach best! As you would be selling a less premium unit for a house with larger land content. You should decide where to live first, then only worry about IPs. You still have plenty time left as you mention 15-20 years till retirement. So for now concentrate on your desired PPOR first.
    I too would buy something that I can add value over time yet can be livable at present.
    Don't forget your PPOR can be an investment too, as it can be sold down in time to downsize. I know of many who have only PPORs no IPs yet they are worth millions....great thing about it too no capital gains to pay at present on sale.
    Perhaps you have not thought of this possibility, you can just invest into more expensive PPORs over time, then sell and downsize leaving you with $Ms.
     
  10. Hot Jam Donuts

    Hot Jam Donuts Active Member

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    It would have been good if it was four bedrooms, sold for $1,150,000. A convenient area indeed.
    I attended two auctions in the same area yesterday and one 4br 611sqm house with pool sold 175k over top quoted price. The other was a 4br home same size roughly but triangular block and very dated wooden frames sold 90k over top price.
    Good experience to watch others bid and gain confidence and not look too eager! Lots of tactics involved!
     

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  11. Hot Jam Donuts

    Hot Jam Donuts Active Member

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    Good news is we sold for $410k over reserve, therefore no need to sell any IP's.
    :D
     
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