All Topics / General Property / What to do???

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  • Profile photo of CKMEInvestCKMEInvest
    Participant
    @ckmeinvest
    Join Date: 2004
    Post Count: 2

    We are currently selling our PPOR and are keen to start a property portfolio.

    The sale of our PPOR will provide us with approx $130,000 cash but I would like some advise on the best way to go.

    Is there any advantage in renting a residence and using the cash we acquire from the sale to purchase multiple IP’s or should the priority be to purchase a PPOR?

    Chris

    Profile photo of BEAR1964BEAR1964
    Participant
    @bear1964
    Join Date: 2003
    Post Count: 702

    Thats an individual call, having said that, Steve Mc was renting while building his portfoilo

    Regards Bear

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    Profile photo of AceyduceyAceyducey
    Participant
    @aceyducey
    Join Date: 2003
    Post Count: 651

    CKMEInvest,

    There’s been a similar debate rage over at Somersoft.

    At the moment with low rental yields there’s a strong case for renting as you can rent a place for around half of what you would pay for it it in repayments.

    You can use the extra money to buy more IPs.

    However if you buy a PPOR you get the CGT exemption.

    So there’s a case both ways.

    With $130K you could also follow a middle course, depending on where you are based, and buy your PPOR and several IPs.

    Cheers,

    Aceyducey

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733
    Originally posted by Aceyducey:

    However if you buy a PPOR you get the CGT exemption.

    You only get this if you ‘sell’ the PPOR however, if you don’t sell it , the CGT benefit is not worth anything.. there are strong cases for renting Vs living in PPOR.

    All comes down to individual preference, we’re in a 3 bedroom place, i’d love to ‘rent’ something bigger ( 4 Bedroom or so ) however can’t convince the ‘Boss‘..[biggrin]

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”

    Profile photo of CKMEInvestCKMEInvest
    Participant
    @ckmeinvest
    Join Date: 2004
    Post Count: 2

    Thanks very much for the advice. Certainly gives us something to think about.

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