Hi everyone first time posting here. I have been absorbing as much info on this forum as possible and doing what i can to develop an understanding of the property market and investing. Our situation is we currently have our PPOR that we have lived in for around 10 years, our home is currently valued $830-$870k and we have 355k left owing on our mortgage.we are wanting to get into the investing game but are having trouble deciding on a strategy moving forward. There are a few different scenarios we could play out. 1: convert our PPOR into an IP by renting out. I believe it would be cash flow positive, and use the equity to buy another PPOR? 2: Sell and in the meantime find a place to rent. Use the funds to invest in multiple IP's? We are a family of 5 (Married with 3 children all under 10) so we do love the idea of a PPOR. We also want to retire at 65 years old with passive income. Me and my wife are 36 years old, so pretty much 30 years to plan for a good retirement. Would love to open up this thread to anyone who may be in a similar position or who can offer advice regarding the scenarios above. Cheers guys, and look forward to hearing from everyone
That doesn't matter. If it is fully exempt as the main residence now, you can be absent and rent it out for up to 6 years and still maintain the full CGT exemption.
ah yes, totally makes sense. I’m assuming then the best thing to do would change our mortgage repayments to IO and then collect all rent and savings, putting that into an offset account to pay down that mortgage quicker?
Strategy: 11 Strategies for when you move out of the PPOR and keep it Strategy: 11 Strategies for when you move out of the PPOR and keep it
‘Another option is to pay down your ppor and build an income stream by investing in ETF’s (Exchange traded funds) such as VAS which is an index fund holding the top 300 Australian companies. Invest cash only, no debt and let the dividends compound. Overtime you will be able to build up an income stream to replace your earned income. Saves dealing with the headaches of residential property investing and less debt gives you choices to work less, change jobs etc. At the same time make deductible contributions into your super funds which will create further income streams in retirement.
If you had non-deductible debt and used cash to invest you would be throwing good money away - debt recycle instead.
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