The Number #1 Thing New Investors Get Wrong...

Discussion in 'Where to Buy' started by Jess Peletier, 12th May, 2020.

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  1. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    The peeps who are buying locally by default are ALSO very likely buying what they'd like to live in...and making it a double whammy of a mistake!

    This can also be a thing where people upgrade their PPOR and rent out their current one.
     
    Jess Peletier, 12th May, 2020
    #21
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  2. Heinz57

    Heinz57 Well-Known Member

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    I thought you were Margaret Lomax for a minute
     
    Heinz57, 12th May, 2020
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  3. Trainee

    Trainee Well-Known Member

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    Buying in other areas, or interstate, scares a lot of people though.

    if the choice is buying nearby or not buying at all.

    seems to be similar to the time in the
    market v timing the market.

    timing the market well is great, but timing it poorly.....
     
    Trainee, 12th May, 2020
    #23
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  4. The Y-man

    The Y-man Moderator Staff Member

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    Agree. Comes down to personal tastes - BUT if you have fairly "normal" tastes, the criteria I have used is "a property I could live in"

    So if things got real bad, we could live in the 1BR ip we own - won't be comfortable, but it has what we need (vs what we want).

    I go with that principle when reno-ing too. It would be nice to have <whatever>, but I couldn't live there with the existing <horrible carpet, slimy bathroom, cockroach kitchen etc>

    The Y-man
     
    The Y-man, 12th May, 2020
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  5. Trainee

    Trainee Well-Known Member

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    Though, for estate planning purposes.... own two properties that you and your family want to live in. Then move out of ppor shortly before death and die while residing in house 2.

    cg free status on some nice ppors for the kids.

    compared to say some ips easy to rent out and so on, but you have to pay cg on sale because the kids dont want to live there.

    Nice houses in good suburbs do well long term. If you insist on new h&l not so much, but with enough time....
     
    Trainee, 12th May, 2020
    #25
  6. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Haha oh gosh...
     
    Jess Peletier, 12th May, 2020
    #26
  7. Indifference

    Indifference Well-Known Member

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    @Jess Peletier good thread topic & a starting post that's sure to evoke debate.

    Perception tends to drive behaviour.... if we perceive we know our local area that creates a level of comfort that many often mistakenly translate into a bit of decision bias.

    I also find that assuming growth as the primary investment target or measure to be somewhat limiting as some buy property just for yield.... sacrilege I know. How reckless. ;)
     
    Indifference, 12th May, 2020
    #27
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  8. MTR

    MTR Well-Known Member

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    Just shows..... if it aint broken dont fix it
     
    MTR, 12th May, 2020
    #28
  9. wylie

    wylie Moderator Staff Member

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    If you've never lived in your IP, and you move into it, it doesn't suddenly become capital gains tax free on sale.
     
    wylie, 12th May, 2020
    #29
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  10. Trainee

    Trainee Well-Known Member

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    If you die while it is your ppor........ legal advice required.
     
    Trainee, 12th May, 2020
    #30
  11. wylie

    wylie Moderator Staff Member

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    Calling @Terry_w
     
    wylie, 12th May, 2020
    #31
  12. Trainee

    Trainee Well-Known Member

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    Trainee, 12th May, 2020
    #32
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  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Lucky = hope, does not = strategy

    Agreed

    ta
    rolf
     
    Rolf Latham, 12th May, 2020
    #33
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Just an extension of us humans generally ?

    ta
    rolf
     
    Rolf Latham, 12th May, 2020
    #34
  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Bit cold

    ta
    rolf
     
    Rolf Latham, 12th May, 2020
    #35
  16. Terry_w

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

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    I think buying where you want to live is a great idea - but only if the suburbs have growth potential.

    Most of the mistakes I see are ownership structure related and/or loan structuring for tax deductibility.
     
    Terry_w, 12th May, 2020
    #36
  17. Terry_w

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

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    It will warm your heirs up!
     
    Terry_w, 12th May, 2020
    #37
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  18. Trainee

    Trainee Well-Known Member

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    Not something you could easily suggest to people, but definitely something to try yourself.
     
    Trainee, 12th May, 2020
    #38
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Mine are very well equipped to sort their own stuff

    I suspect I be of the Ski generation

    ta

    rolf
     
    Rolf Latham, 12th May, 2020
    #39
  20. Terry_w

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

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    The death strategy doesn't need to be done right on diagnosis of a terminal disease either. After owning a property for a while you could move in to it, even if 20 years before your death you will have wiped out a large chunk of CGT potetially.
     
    Terry_w, 12th May, 2020
    #40
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