Should I sell investment to fund ppor?

Discussion in 'What to buy' started by Jason Micallef 2, 28th Mar, 2022.

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  1. Jason Micallef 2

    Jason Micallef 2 New Member

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    Ok so I have nice investment property in Western Sydney that was my first property purchased. It's seen some terrific growth and after doing the maths I will be left with nearly 500k after cgt and all costs
    It's a house and a granny flat. All up I'm getting 840 a week in rent and it is well covering the repayments.

    Only issue is that I am getting fed up of renting on my family property and really want my own space for my little family where we can be free to do what we want.

    I have been looking around mudgee and know I can afford very close to our dream home in this area if I sell my current investment.

    I can't afford to buy a home whilst keeping an investment. I will have to sell to get what I want.

    I'm just torn with the decision.
    My western sydney property is in a great growth location and I know that once I sell, I won't be buying in that market for a very long time. Also the income coming from that property Is nice too.

    But then I look at if I sell it. I will only have a small loan for the mudgee ppor and it will be closer to achieving our lifestyle goals.
    I still got an investment in qld that I will hold onto so I'll have a bit of rent coming in to help with the repayments.

    The way I have been seeing it lately is that the bare minimum I want is a ppor that I'm happy to call my forever home. Ideally it will be paid off, meaning that if all **** hits the fan in my life, at least I have something to fall back on without worrying about income to support loan or rent. Obviously rates and stuff I need to fork out but that's easy enough.

    Just does anyone have any thoughts and opinions?
    Should I sell my investment on westernsydney to fund ppor in rural nsw?
     
  2. Terry_w

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

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    The purpose of investing is to enjoy your life. You can always buy another investment property in the future too
     
  3. Do Androids Dream

    Do Androids Dream Well-Known Member

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    I've said it before... life is too short not to be completely happy, so I think you know what you need to do :D
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Investment is a means to reach your goals. Goal posts move.

    Looks like moving to Mudgee & debt free, you will tick all those boxes.
     
  5. Marg4000

    Marg4000 Well-Known Member

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    Agree with the above comments, if you can get yourself and your family into your dream PPOR, go for it!
     
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  6. Brisbaneforever

    Brisbaneforever Member

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    Once family comes on the picture then you want a PPOR. The thing is to consider is that your PPOR is an investment as such as well. Renting can be dead money. Unless you are living in the best rental ever cheap as chips I would be hands down getting your PPOR.
     
  7. jas

    jas Member

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    To offer a counter argument, I've seen a lot of houses on the market which were someone's 'forever home'. The q I have is therefore longer term. What are the chances that this forever home will remain so? Can you build a plan which uses the captial growth in the PPOR in your investment journey?