Id love to know how many renters dwell here with IP's and maybe even how much theyre renting for also?
Any renters with IP's here?
- Thread starter want2bewealthy
- Start date
We are renting out our PPoR while we are here in the US, but will be continuing to rent when we get back for another 2 years because our PPoR is debt free, and we want to rent somewhere nearby that is less than we get from ours, thus making a surplus.
We have other I.P's, and also a block of land which will be the future PPoR site. Will sell the PPoR to fund the new house and pay out the Land, then re-draw equity from new PPoR for more I.P's.
As a matter of interest; the apartment we were in back in L.A was a 1 bedder for $2200 p/m!
We now live in Santa Rosa (1 hour nth of San Fran), a large country town like Bendigo in the Napa Valley Wine Region, and a 1 bedder here is $1,300 p/m. San Fran is worse than L.A, thus everyone is moving out here (to Santa Rosa and nearby) and commuting. Poor bast**ds.
Fortunately for us the rent is paid by the agency my wife works for.
Aus is the best country in the world folks.
Hey Alex; do you own any I.P's even though you are still renting?
We have other I.P's, and also a block of land which will be the future PPoR site. Will sell the PPoR to fund the new house and pay out the Land, then re-draw equity from new PPoR for more I.P's.
As a matter of interest; the apartment we were in back in L.A was a 1 bedder for $2200 p/m!
We now live in Santa Rosa (1 hour nth of San Fran), a large country town like Bendigo in the Napa Valley Wine Region, and a 1 bedder here is $1,300 p/m. San Fran is worse than L.A, thus everyone is moving out here (to Santa Rosa and nearby) and commuting. Poor bast**ds.
Fortunately for us the rent is paid by the agency my wife works for.
Aus is the best country in the world folks.
Hey Alex; do you own any I.P's even though you are still renting?
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Yes, I own IPs, and am renting. I just got back to Oz so I'm renting for the time being, but plan to buy a PPOR next year. None of my IPs are in Sydney, and I plan to live in Sydney for the long term. Going to arrange things so that I don't have to sell any IPs to buy my PPOR. Financially, it doesn't make much sense to buy a PPOR, but even my nesting instinct is starting to kick in.
Alex
I also ticked the cheap living option. Currently living with my partner in his IP (I pay board/bills) while he renovates his PPOR then we'll move back in there. I had a PPOR which I sold last year (stupid stupid) to fund my 18 months of being a student. I don't think I would live in any of my IPs as they are in North Qld and Ipswich nor do I think I will buy another PPOR until I am close to retirement and sick of paying rent although I want to buy a place in Brisbane as an IP but nice enough to move into should I ever choose/need to.
IMO renting and buying IPs is a much better use of my money and our generous tax system.
IMO renting and buying IPs is a much better use of my money and our generous tax system.
We live in our "newly acquired" PPOR which is also our "newly paid off" PPOR! 
And, yes, we have other investments too...
We bought that PPOR by starting with an IP whilst renting as well as managed funds, then sold out of both to put down a 50% deposit on the PPOR. Then paid it off through hard graft and delayed gratification coupled with managed funds to supplement our earned income.
Like Daz, we too have it hocked to the eyeballs now with every spare penny worth of equity extracted and invested, and in most cases leveraged significantly.
Cheers,
Michael.
And, yes, we have other investments too...
We bought that PPOR by starting with an IP whilst renting as well as managed funds, then sold out of both to put down a 50% deposit on the PPOR. Then paid it off through hard graft and delayed gratification coupled with managed funds to supplement our earned income.
Like Daz, we too have it hocked to the eyeballs now with every spare penny worth of equity extracted and invested, and in most cases leveraged significantly.
Cheers,
Michael.
Late twenties and live as a couple in a share house in Southbank, Melb. Combined weekly rent of $210.
Just bought our first IP, and am off the see a buyer’s advocate at lunchtime to talk about our second.
Have just gotten our act together in the last six months and are very focussed on investing for the future instead of wasting our incomes.
Just bought our first IP, and am off the see a buyer’s advocate at lunchtime to talk about our second.
Have just gotten our act together in the last six months and are very focussed on investing for the future instead of wasting our incomes.
We live and rent in rural Victoria...$20 per week, a grand old farmhouse, wide open spaces and lots of privacy and peace.
Run around naked but don't scare the sheep.
Such cheap housing has facilitated a wonderful (ongoing) journey and opportunity into property investing..
Very difficult to get rental accommodation in many parts of regional Victoria; especially the towns and regional cities I am familiar with...there may be some number of unoccupied homes (eg rural retreats for city dwellers), elderly/ill people vacated their home to move into aged/hospital care and don't wish to rent or sell (yet). School teachers/bank staff/agricultural business staff/apprentices etc snap up the rental properties very quickly and with very healthy returns for an investor.
We haven't yet decided where we will eventually settle down and have our PPOR, thought it might be Melton, currently having a rethink on that...kind of like and am smitten with western/southern area of the *boring flat Horsham* ...toward either Mt Arapiles/Tooan or Grampians/Gariwerd National Parks and the beautiful mountains....such rich and fertile soils, great views, and relatively much cheaper than (boring flat ) Melton, (hmm leaving more $$$ available for further IP's)....so more bang for buck; plus reasonably close to the coast that I adore, the Great Ocean Road....remember I am a country person, a 2 hour drive for me is relatively "close"...
LA Aussie sums it all up well for my feelings:
It has something for everyone...what one person may consider flat, boring and windy might be right up another's alley..
It's all good.
Run around naked but don't scare the sheep.
Such cheap housing has facilitated a wonderful (ongoing) journey and opportunity into property investing..
Very difficult to get rental accommodation in many parts of regional Victoria; especially the towns and regional cities I am familiar with...there may be some number of unoccupied homes (eg rural retreats for city dwellers), elderly/ill people vacated their home to move into aged/hospital care and don't wish to rent or sell (yet). School teachers/bank staff/agricultural business staff/apprentices etc snap up the rental properties very quickly and with very healthy returns for an investor.
We haven't yet decided where we will eventually settle down and have our PPOR, thought it might be Melton, currently having a rethink on that...kind of like and am smitten with western/southern area of the *boring flat Horsham*
...toward either Mt Arapiles/Tooan or Grampians/Gariwerd National Parks and the beautiful mountains....such rich and fertile soils, great views, and relatively much cheaper than (boring flat ) Melton, (hmm leaving more $$$ available for further IP's)....so more bang for buck; plus reasonably close to the coast that I adore, the Great Ocean Road....remember I am a country person, a 2 hour drive for me is relatively "close"... LA Aussie sums it all up well for my feelings:
It has something for everyone...what one person may consider flat, boring and windy might be right up another's alley..
It's all good.
I am late twenties, 3 IP's, rent $290pw with wife and 2 young kids (wife not working) cash flow is tight but not as tight as some of our friends with the big Sydney mortgage and wifey has to go straight back to work. At some point we want to buy but still not sure how to "recycle" debt as Alexlee mentioned, my first idea is to sell 1 ip for a deposit, then the other 2 in consecutive tax years to pay the debt off (we just moved down the coast so should be enough equity to pay off the whole mortgage) with minimized cg tax. Of course this is slow and I lose the cg benefit of those Ip's. Also I could sell all at once and take a bigger tax hit but achieve the outcome faster so can reinvest sooner. So I am really open to other ideas as well for how to go about NOT having a large non deductable debt. I don't mind debt at all but I want it all to be deductable. Any thoughts?
we rent
We rent and have 2 investment properties plus other investments.
We delaying gratification although must admit part of the trick is to convince yourself that your are not delaying anything at all. There is freedom in renting (no repairs = no worries), and theres nice tax concessions for having investment properties.
Getting attached to ownership (a PPOR) is an easy thing to fall into when the reality is that all that should matter is that you live a nice house. Who actually owns it should be immaterial, and goes back in some way to our need to OWN things....I understand it but I think you can enjoy life without owning a PPOR (until such a time that we arent making a huge sacrifice to own a house in terms of lazy debt).
We rent and have 2 investment properties plus other investments.
We delaying gratification although must admit part of the trick is to convince yourself that your are not delaying anything at all. There is freedom in renting (no repairs = no worries), and theres nice tax concessions for having investment properties.
Getting attached to ownership (a PPOR) is an easy thing to fall into when the reality is that all that should matter is that you live a nice house. Who actually owns it should be immaterial, and goes back in some way to our need to OWN things....I understand it but I think you can enjoy life without owning a PPOR (until such a time that we arent making a huge sacrifice to own a house in terms of lazy debt).
I rent and own 2 IP's. Currently looking for a 3rd IP which I hope to eventually turn into PPOR after a few more years of renting... I live with my wife and we are expecting next year(mid twenties). Everything is managed in such a way so that I can afford to live off one income.
If it was all up to me I would be looking purely for another IP but the next house I am looking at buying ( in next 8 months I hope) has to be a PPOR type so cant look at it as an investment as much...
We shall see what happens. I am glad I didnt fall into the trap of buying one big lovely house and having us both have to work just to make ends meet.
If it was all up to me I would be looking purely for another IP but the next house I am looking at buying ( in next 8 months I hope) has to be a PPOR type so cant look at it as an investment as much...
We shall see what happens. I am glad I didnt fall into the trap of buying one big lovely house and having us both have to work just to make ends meet.
Say you start with a PPOR debt of $500k. You save say $100k from salary, dividends, whatever. You put that $100k into the PPOR loan and refinance to buy another IP with that $100k.
Note after you start doing this, the rules regarding split loans means you can't just keep paying off the non-deductible portion but the repayments have to be proportionately split.
Basically, debt recycling involves passing money through your PPOR loan to purchase more investments.
Alex