Tricky Situation : Should buy IP or Not?

As most of us say its not a good time to buy PPOR yet Sydney, lots of vendors are still hoping to get the 2017 prices, it takes time for ppl to adjust their exceptions, maybe another 1 or 2 yrs.

So if PPOR is 2 yrs away, where should I buy an IP and exit in 2 yrs. Or rather not buy anything for 2 yrs and keep saving? Hard to be idle and tracking Sydney prices for that long.

Currently own PPOR 600k loan pending and estimated house price is 950k. Deposit saved ~200k. Long term goal to move in another PPOR which offers better schools eg Cherrybrook, Carlingford etc.

 

Buying ppor especially if upgrading in sydney is a different calculation.

 

2 years is a very short period of time to expect definite growth for an investment.

Since you own a home right now, it's worth considering that this one has grown and simply, apart from the stamps and selling costs, you're trading one asset for the other and not losing that gain in value per say. Using cash to buy an investment doesn't make sense when you can either:
1. Purchase the next one (once you sold this one) - presuming the new purchase requires more funds than 200k
2. Used bridging finance to move to the new one
3. Possible security substitution (tho need to time the settlement of your sale and the new purchase) (depending on which lender you're with)

#1 will give you access to a number of options and also depending on the lender flexibility to pay down part of the loan and 'reborrow' the funds back for deductibility purposes and then go IP shopping.

So there is no reason why you cannot do BOTH right now - buy PPOR and buy IP - depending on your borrowing.

People will always need a home to live in. Unless of course you're hoping the current home may be worth much more in a few years - you will face the same issue - i.e. you wanting to sell at a peak price versus wanting to buy in at a cheaper price.

 

You could sell your PPOR at it's current high value before values drop much more then rent for awhile in the suburb you want to live in for a year or 2 and see if there is better buying for the upgrade then.
If values to drop over that 1-2yrs then you can take advantage of it and get new PPOR

Whilst waiting you could buy an IP - maybe in another state - if you wanted to go for for growth.

 

@ Sana Ali & Mona Ali CA :
Which suburbs do you suggest in Sydney to invest max $750k?