murraybridge 
If you’re looking to break into the property market you may be weighing up whether to buy a home to live in or an investment property to rent out. While buying a home to live in can seem appealing, in some cases an investment property can be more financially rewarding long-term. There are pros and cons to both first-time investing and first home buying and the right path to take will depend on your individual circumstances and long-term goals.
Reasons to invest first:
Rental income – A big advantage of buying an investment property is that it can generate a rental income. Many lenders will take rental income into account when calculating borrowing capacity, which may allow buyers to take out a larger loan than they would be able to if buying a home to live in.
Tax benefits – A number of key tax benefits are available to property investors in Australia. Incentives such as negative gearing and property depreciation can help offset the cost of holding a property and greatly improve an investor’s cash flow.
Greater choice of location – Buying an investment property provides a greater range of locations to choose from because buyers aren’t limited to just the places that they would be prepared to live in. For those that want to live in areas out of their price range, property investing can be a good option as they can continue to rent in these areas while securing their financial future with a property bought elsewhere.
Flexibility – The prospect of being tied to a mortgage and a single location can be intimidating. Buying an investment property offers greater flexibility for those who don’t want to be based in a single location long-term and need the option to travel or move for work or other reasons.
Reasons to buy a home first:
Government incentives – There are several government grants and schemes aimed at attracting first home buyers into the market. Different states and territories have different entitlements and stamp duty concessions available and in many cases these aren’t available to first time investors. Visit www.firsthome.gov.au to learn more about the first home incentives in your state or territory.
Security – There can be a lot of comfort in knowing you own the home you live in. You can say goodbye to the days of renting where you may have to worry about whether or not your lease will be renewed or rental prices will increase.
A home to call your own – Sometimes there’s no greater incentive to buy a property than wanting a home to call your own for the years to come. Owning your own home give you the freedom to make changes to your property and turn it into a place that is perfectly suited to you and your family.
