We too are first time home buyers and are tossing up whether to firstly buy our own home and utilise the first home owners grant with a view to reviewing situation 12 mths from purchase to decide whether to purchase our first investment or rent out our initial purchase. We are just unsure of what we should do as well – I guess the lure of the FHOG is great and makes it a bit of toughie decision. We know where we want to end up just not sure how to start.. All ideas most welcome – is there anyone else in this situation or was in this situation, would love to hear your stories too…
I think either move is a positive step. Don’t get yourself too bogged down by decisions. In the long run either will work!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
So where do you want to end up?
My view (a little different from most) is to invest, and continue to rent. Ultimately the rental you pay for the property you would like to live in is usually, less than what you would have to pay as a mortgage, council rates etc and you don’t need a minimum 10% deposit.
However, most people are more comfortable with owning their own home. So if that is where you are, ultimately I don’t think it matters in the longer term in which order you purchase, financially. PPOR or IP first.
Depends on what sort of residence you want to love in and what you can afford. If you have desires on something a little more luxurious, maybe an IP first, to build equity through renting it out and time to appreciate. Save in the mean time and re-asses in 12 months. You would be in a better position to buy that more pricy ‘dream home’.
James
Thanks for the feedback – after discussing for the last hour we have decided to go with the investment property first – get some equity and go from there. Just out of interest – I have since found out that as long as we own an investment property that we never live in we will still be eligible for the FHOG. Handy to know!!
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