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FIRST HOME OR FIRST INVESTMENT?

The facts

Deciding whether to become a first home buyer or to buy your first property as an investment can be a difficult decision. It is always important to look at the facts.

Fact - If you buy a property with the intention of living in it for the next twelve months, you may be eligible to receive the First Home Owners Grant. In Victoria, this can be as much as $10,000 for a new property purchase or construction of no more than $750,000.

Fact - If you purchase your first property as an investment, you will not be eligible for the First Home Owners Grant, if you buy an investment and then buy your first property to live in.

Fact - If you look for a smaller mortgage for your first property, you may have enough deposit to cover a second property to buy an investment. 

Fact - If you buy an investment property in a higher paid suburb, you may receive top dollar through rental income. 

Fact - If you buy a property, you can use the equity acquired over time for a second deposit and mortgage on a second property.

Fact - If you want to have a second mortgage, you will need to have a good back-up of cash. In case rent cannot be paid over the short term due to tenancy changes etc. Look at the additional costs involved in an investment property. This includes but not limited to, advertising, real estate agenct fees, possible body corporate fees as well as maintenance etc., to ensure you can afford it.

It is improtant to note however if you cannot afford the repayments on a property, you will not be given approval on the loan. This is why it is always best to sit down with a mortgage professional who can go through how much you can afford and give you some options to think about. Then you can make the decision whether now is the time to buy or if you should wait to build up more of a deposit, to lower the repayments.

The best part of having a mortgage is there are various options available to you. Nobody fits in a square box and nor do we expect your situation to. Contact our Mortgage Managers on 1300 799 266 or email: This email address is being protected from spambots. You need JavaScript enabled to view it. . No question is a silly question. We are here to listen and do our best to give you scenario's that will work best for you.

 

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