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With Melbourne property prices constantly growing, it might be tough to identify and acquire your “dream home”: a house you want to live in that is also located in your preferred area. As a result, many first-time buyers prefer to acquire investment homes while renting. Because of the flexibility and lifestyle benefits, it provides first-time home purchasers, the ‘rentvesting’ movement appears to be here to stay.
However, you must analyze the benefits and downsides of each course so that you may be sure of your decision. If you’re debating whether to buy a house or an investment property, let us guide you through the possibilities so you can discover which one best meets your needs.
Maintaining Your Lifestyle Matters To You
If maintaining your lifestyle is important to you, you should consider purchasing an investment property first.
With Melbourne property prices increasing, first-time buyers may struggle to locate a home in an area where they wish to reside. What makes a location appealing is a matter of personal choice, but for many, the facilities, parks, cafés, stores, and entertainment of metropolitan regions are irresistible. You may still enjoy these cosmopolitan privileges by renting in the neighborhood you like without “putting your home on it.”
Your Work In The City
Many first-time buyers with demanding city jobs are opting to rent closer to the CBD while investing in a house in the outskirts or rural areas. This alternative allows you to enter the real estate market without having to give up your CBD-based employment or your urban lifestyle. If the houses in your selected suburbs are out of your price range, you may want to consider purchasing further afield. That means if you commute to the CBD, you’ll have to figure in extra travel time and expense.
You Don’t Want To Become Heavily Interested
Buying a home as an investment rather than a primary residence allows you to be less emotionally invested in the purchase and make more logical judgments concerning the property. A major pitfall for first-time homebuyers is becoming too attached and overpaying for residences. Consider whether you’re willing to give up your urban lifestyle and increase your commute in order to live in a home you own before you buy.
If you are considering purchasing a property, you should do it first if:
You Don’t Want To Take Any Chances
Any property acquisition has some risk, but you’re putting a lot on the line if you buy an investment property and overcapitalize. If you acquire an investment property to rent out to tenants, but the rent does not cover your expenditures (such as your mortgage, council rates, owners corporation, and other outgoings), you will have to make up the shortfall while continuing to pay your own living expenses or rent. If this becomes too much for you, you may be tempted to sell, which will require you to pay more capital gains tax.
10 Properties in 10 Years provides expert advice from Financial Advisor in Melbourne and can help you get details about wealth management services in Melbourne. For further queries, please reach out at
[email protected] or call 1300-617-677.