Small PPOR Mortgage - Lifestyle & Investment

Discussion in 'Investment Strategy' started by Alex P Keaton, 1st Feb, 2018.

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  1. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,934
    Location:
    Brisbane
    How will the "preferred" location help right now? Reduce travel time? Or is it just a suburb you prefer over the one you live in now?

    My thought process is to hold as much as you can, hold three properties if you can. Unless you can get the better location AND a garden space, it will mean you will be selling again in the coming years to get the garden space you really want.

    That means you have selling costs and stamp duty to get into a better location now (or soonish) but you still need to buy and sell again (and cop another lot of selling costs and stamp duty) to get the desired garden area.

    I'd hold off until you can afford a place in your preferred location and can get exactly what you want... location AND garden space.
     
  2. Alex P Keaton

    Alex P Keaton Well-Known Member

    Joined:
    14th Nov, 2017
    Posts:
    496
    Location:
    Perth
    Hi. Thanks for your input! It doesn't impact travel time. Just a nicer location near this huge open space. It takes just a few mins to walk there from the street/streets in thinking of buying. It'd be nice to be able to do that. It would also be nice to be on the ground floor. Easier to not have to lug my bike up and down the stairs.

    Yeah I agree it's important to hold 3 Perth properties if I can as Perth should see some growth in the coming years.

    Good point on the selling costs. Yeah. I see what your getting at.

    Well I'm just not sure if I'm financially able to hold all 3 of my properties for a few more years. At one point a few months ago I thought I'd be lucky to last six months. My unit is on the market. I'll wait to see what kind of offers I get.

    I don't like to go under $20,000 in savings when holding 3 properties and I currently have $15,000. By the time I get my tax return in August I'll get $7000 back. So I'm hoping I'll have at least $15-18k in my savings account come August. Then I have to hope that Perth rents will rise and I won't be so NG.

    But maybe I can pull this off. Maybe I'll be able to hang on a couple more years. Things might be easier then if rents have risen. I was only working part time for 6 months of last year so I've realised that's a reason my savings got eaten into. Plus I was having to pay another fortnightly expense which I don't need to pay now.

    I just hope I'll do the right thing and keep my head above water