Buying A House: Property Investing Vs. Your Own Home–Which Is Your Best Option?

  • Posted 23 Mar

Buying A House: Property Investing Vs. Your Own Home–Which Is Your Best Option?

If you’re in looking to get in to the real estate market, your’e probably wondering which is the best place to start—buying a home to actually live in or buying an investment property that you would rent out and earn an income from.

There is a growing trend among home buyers that leans towards buying an investment property first as opposed to a home that they would actually live in. There are benefits to both scenarios, so the key is making sure you have the right information.Property: To buy or invest?

As with anything in real estate, seeking out professional advice is always best, but here are a few of the pros and cons of both options for you to consider:



Property Investing


The trend towards focusing on investment properties is especially noticeable throughout Australia, where increasing property prices are making it more and more difficult to secure that first purchase. Also, amongst the “Gen Y” folks, many are enjoying receiving rental income while saving up by living with mum and dad.

The main benefit of focusing on an investment property is that you can get involved in real estate and build equity on your own terms.

You could buy an investment property that may be less than desirable as far as you’re concerned, but the income and equity you generate will allow you to purchase something of your own that is more to your liking a few years down the line. You’ll be in a better position to buy something you couldn’t afford before you went down the investment route.

Also, the tenants will be making the mortgage payment for you, so you’ll be able to pay off the loan easier. If the property increases in value, you’ll have built some nice equity to use in buying your first home or next investment property.

The thing about investing is that you need have a knack for long term planning and the financial wherewithal to make it work. Being a landlord isn’t for everybody, and you need to be realistic about whether or not you can handle the responsibilities of dealing with tenants, maintaining the property, and navigating tax issues.



Buying a Home


If you have the initial deposit, and can afford to buy a home that you will actually live in, this is a great route to go. For one, you won’t have to live with mum and dad anymore, and also, you’ll be building equity. You’ll have your own space. It may not be your dream home initially though, unless you have the finances. You’ll need to be comfortable living within your means.

You can use your first home as your launch pad into a better home by building up equity in the home, and then your next home can be an upgrade.

In either scenario, you are a real estate ‘investor.’ Either way, you are going to need to come up with the cash for the deposit, and you’re going to need to take on the responsibilities of being a property owner whether you’re a landlord or a homeowner.

Seek out professional advice, and do some thinking about which feels best to you. Ultimately, you cannot go wrong by investing in real estate. If you’re a landlord, or the homeowner, you’re making a good move for your financial future. If you remember that it’s a long game, not a short one.

Need some advice on home loan finance? Get in touch with one of our team today to discuss your options, whether you’re looking to buy a home or invest in property, we can help.

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