Hi,
We are divided as to whether we should buy a place to live in or an investment. We currently live in a beach suburb and rent an apartment for about $500 pw. We like it here and don’t really want to move.What would be the best way to get into property. A unit in the area would cost $650 – $675k to buy to live in.A terrace house near the city would also cost the same. But if we rented it out could get between $650-$720 depending on bedrooms/condition etc.We have a deposit of $350k.income is about $160k for both of us.I work from our apartment sometimes and claim a percentage of the rent too which I would not do if we bought a place to live in.Any comments would be appreciated, thanksa friend of mine has always rented where she wanted to live and invested where the capital gains were good. If I was starting out again I would do the same and maybe sell up later and buy a place when I got older and wanted some assured security/stability….but who knows that far down the track. I dont really see a downside to having some tax deductible IP debt and some partially tax deductible rental…..you have a good plan, unless I am missing something or tax policy changes.
I personally rent where I like to live and then invest where I think I will achieve the highest gains in property.
I live in a tourist town where median house prices are 500k and median rental are only 300pw. The return that you can get by investing elsewhere far outweighs the fact that I am not living in 'my own' (even though the bank would own most of it) house.
In the end it all comes down to personal preference and if you like where you currently live there is no need to move.
I would look at buying a place to live in and then getting an investment place some time down the track when equity builds up in your principal place of residence. It depends if the unit you want to buy is somewhere you could see yourself living in for a while. Over and out …
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