FIRST HOME OR FIRST INVESTMENT?
- Written by Melanie Toye, August 17, 2013
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.
- Buying property in a natural disaster area
- Renovate to the value of the market
- Why you shouldn't wait to get into the property market
- Property Investment Choices
- Before you go property shopping, read this
- Three things to consider before upsizing your property
- How much would you spend on an investment property?
- Holiday home investments - is it worth it?
- Passive income for now and the future
- Let The Block be your guide on how buy & sell works
- Decisions, decisions. Fixed or variable?
- Off the plan property purchases
- 2014 - The year of property
- Customer service is our focus
- Buying to renovate and sell
- Another way to look at property
- Manage your own rental property
- December - Is it a bad time to sell?
- Sick of renting?
- Difference between a bigger property vs a smaller one
- 30 Days of Packing during Christmas
- What I learned from buying my first property
- The right time to sell
- The risk going guarantor
- How do you dream big when on a budget?
- First home or first investment?
- Got equity?
- Buying your last home
- Property purchases based on climate change
- The renovators dream
- Auctions are a winner
- Planning for your financial future
- Cheaper to buy than rent
- Pay off your mortgage sooner
- The Effects of Having Low Interest Rates
- Planning for the future
- Looking to Invest in Property?
- How to Choose a Mortgage Broker
- First Time Mortgage Borrowers
- Be 'In the Know' When Buying a Property
- Refinancing Your Mortgage to Build Your Financial Portfolio
- Borrowing in a Self Managed Super Fund
- Major Life Decisions
- Which State Wins the Popularity Race?
- How to Build a Portfolio of Multiple Properties
- Seeking Funds For Your Investment?
- Boost Your Home Value
- When Buying A Unit
- Take the Stress Out Of Buying Your Home With These Handy Tips
- Refinancing - The Smarter Way to Lower Your Home Loan Repayments
- How to Build A Good Deposit
- Lower Your Mortgage With These Simple Tips
- Big Decision - Overseas Travel or Buy Your First Home?
- Buying Off the Plan
- Saving For A Deposit