All Topics / Help Needed! / Should I buy a PPOR or IP first?

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  • Profile photo of bigdellbigdell
    Participant
    @bigdell
    Join Date: 2013
    Post Count: 20

    Hi Everyone,

    Little bit of background information first. I am looking to break into the property market for the first time. I am earning a decent wage $100,000+pa and I am debt free. And live in Brisbane.

    I am stuck with the decision on whether or not to buy a  PPOR or an IP first.

    My main reason for being undecided is if it is going to be more beneficial in the long run in terms of tax purposes to buy and negative gear an IP or for me to take advantage of the first home owners grant and get into my own place as soon as possible?

    If anyone has any advice on my predicament it would be greatly appreciated.

    Thanks and Happy New Year!!!

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi bigdell

    why not do both? Purchase a PPOR and use it to leverage into investing.

    Heres an article I wrote on this exact topic.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of bigdellbigdell
    Participant
    @bigdell
    Join Date: 2013
    Post Count: 20

    Perfect Jamie!

    That is exactly the answer I was after. I did have that idea but wasn't sure if I was going to be better off with the tax benefits of the IP first.

    I think its time to get onto a broker and get the ball rolling!

    Cheers!

    Kendall

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    It comes down to a lot of things including the numbers and also lifestyle. There are a lot of investors who have a large portfolio as they have bought in lower entry point suburbs whilst renting close to the CBD (due to work or lifestyle reasons). This allows them to take advantage of the negative gearing benefits. However don't purchase a property for negative gearing. Purchase a property based on your strategy whether that be development, subdivision, renovation, etc. 

    This is why you need to always do the cashflow numbers and see what scenario stacks up. 

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Also good point about talking to a broker as a broker can help you crunch the numbers. Find yourself a local broker as it sounds like you may have a lot of questions to run through and it may help being face to face.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    bigdell wrote:
    Perfect Jamie!

    That is exactly the answer I was after. I did have that idea but wasn't sure if I was going to be better off with the tax benefits of the IP first.

    I think its time to get onto a broker and get the ball rolling!

    Cheers!

    Kendall

    You're welcome – I'm glad it helped.

    It's how a lot of my clients have started out.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of bigdellbigdell
    Participant
    @bigdell
    Join Date: 2013
    Post Count: 20

    Thanks so much for the advice guys very much appreciated! Has been taken onboard and will put it into practice! 

    Cheers

    Kendall

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    Like Jamie suggested try to do both simultaneously, but I still recommend you to talk to an experienced broker because I am sure you will have plenty of questions down the way.

    Profile photo of bigdellbigdell
    Participant
    @bigdell
    Join Date: 2013
    Post Count: 20

    My List of questions grow everyday with every click of the mouse on this forum! I am so glad I have found it nothing like using other peoples experience and sharing your own rather than learning the hard way every time. I wish I had the deposit ready to go now, but I think the decision to pay off my personal loans before saving for a deposit will pay off in the long run.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    If you're in need of face to face contact then Richard Taylor who posts on this forum is your best bet – he knows a thing or two about finance structuring and property investing. 

    Cheers

    jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Thanks Jamie appreciate the wrap.

    Dell i am in the UK for another 10 days but be more than happy to buy you a cuppa and sit down and work thru some of your questions

    Fllck me an email and we can pencil in a date / time to suit.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of bigdellbigdell
    Participant
    @bigdell
    Join Date: 2013
    Post Count: 20

    Thanks for the info again guys.

    And Richard email is on the way!

    Cheers

    Kendall

Viewing 12 posts - 1 through 12 (of 12 total)

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