Need advice / suggestions please. I have a PPOR in the South Easter part of the Melbourne which I bought in year 2014, the property price has significantly increased so I pulled out all the equity and bought 3 investment properties 1 in the western part of Melbourne and 2 in Perth. My family is growing which demands for a bigger house, if I would have to buy a new house in the same suburb I live in then it would cost not less than 1.5m for the property that me and my partner have in mind, and if we decide to go this route then we will to sell all our investment properties to get the loan etc. A better way that I can possibly think is if I rent turn my PPOR into an investment property, this will be a great positive gearing property as 50% of loan has been paid and for us we go and live in a rental property in the same suburb where we currently live in due to kids school etc. Do you think it’s a good idea? If anybody is in the same situation or have walked the same path? Your help will be appreciated to make a sensible decision.
Have a think about the future impact. If you sell everything and buy the new PPOR, you will pay stamp duty, and lose all the future appreciation on the IPs. otoh you get a PPOR you like, which will probably be cgt exempt. If you move out, make the PPOR an IP, and rent somewhere else, you keep all the future gains on the properties but you don't have a PPOR. This seems like a good idea, until your lease doesn't get renewed and you have to move or the rent increases significantly over a few years.
It depends on your priorities and what will make you and your family happy. Did you have a plan of how you were going to upgrade your home when you were buying the investment properties? While 'rentvesting' is popular in certain demographics, most families want the stability of owning their own home. There is no point being wealthy if you are not happy/comfortable with where you are living.
