First home vs investment property

Getting onto the property ladder and becoming a homeowner has long been considered the great Australian dream.

But the first property you buy doesn’t have to be one you live in – it could be an investment property instead.

Wondering which path is right for you? We look at some important factors to consider when deciding between buying a first home or an investment.

Buying an investment property

Rather than delaying your property plans to save for your forever home, you could purchase a less expensive property as an investment.

It may help you get onto the property ladder sooner so you can start building equity, generate income from your investment and take advantage of any tax benefits available.

Keep in mind that there are risks with investing and it’s not the right option for everybody. As you’ll need to pay both your loan repayment and rent each month, make sure you crunch the numbers first.

Buying your first home

The comfort of homeownership, stability and the freedom to renovate are just some benefits to buying and living in your first home. Not to mention, paying off the house you’re living in can be emotionally rewarding.

To help make it happen, there are several government supports available and you may be eligible for stamp duty reductions and other concessions.

On the other hand, you may have to compromise on the location, size or type of home you purchase due to budget constraints. And if you’re not ready to put down roots, buying your first home may not be the right move yet.

Ask an expert for help

Deciding between your first home and an investment property will depend on your personal circumstances, where you want to live, and your financial goals.

A Liberty Adviser can help you explore the finance options available to you and find the right loan for your situation. To find out more, contact a Liberty Adviser today.