All Topics / Help Needed! / Renting vs buying home

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  • Profile photo of RaftimRaftim
    Participant
    @raftim
    Join Date: 2015
    Post Count: 1

    I’m looking into buying a property, but I’m conflicted with the thought of renting while having an investment property. This doesn’t make sense to me. Should I buy a house to live in first and then look at investing?

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Raftim,

    Welcome aboard and great to see you posting a question right away!!

    That confliction you feel is quite common – maybe because we are not exposed to “alternatives” when growing up in the average household.

    Should I buy a house to live in first and then look at investing?

    Both ways have benefits and the decision should not be made lightly. But, read this (following link) for a bit of an “alternative look” at that question.
    https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697967

    In short, the author shows that renting and owning an IP can be FINANCIALLY better than buying your PPOR. But then, there might be NON-financial aspects that need consideration too – so the decision remains with you, as you know YOU and your situation best !! ;)

    Benny

    Profile photo of michael@propertunitybuyersagents[email protected]
    Participant
    @michaelpickham
    Join Date: 2014
    Post Count: 6

    Hi Raftim,

    Good question. There can be many answers to this. Have you spoken to your accountant or financial advisor? I personally consider paying someone else’s mortgage off to be somewhat “dead money”. This doesn’t mean that I’m right. If you were to buy one or two properties in a reasonable growth area, you’d be doing better than the cash rate at the bank at the moment although that’s debatable too. Cheers

    Michael

    [email protected] | Propertunity Buyers Agents
    http://www.propertunity.com.au/
    Email Me | Phone Me

    Real Estate Buyers Agent for Sydney & Central Coast

    Profile photo of ABAB
    Participant
    @ameetvbhat
    Join Date: 2015
    Post Count: 21

    Hi Raftim,
    Personally I don’t think there is a right or wrong answer to this question. Well thought out and depending on your circumstances, either option could be financially viable.
    Good Luck,
    AB

    Profile photo of Jason TyrrellJason Tyrrell
    Participant
    @jason-tyrrell
    Join Date: 2016
    Post Count: 6

    Hi Raftim,

    Others have covered off on most things to consider well.

    But renting where you want to live, and investing where you think you will get the best results makes perfect sense.

    Cheers

    Jason

    Jason Tyrrell | Turning Point Finance
    http://www.turningpointfinance.com.au/
    Email Me | Phone Me

    Finance Strategist and Investor

    Profile photo of MikeMike
    Participant
    @mikesonthemic
    Join Date: 2008
    Post Count: 43

    My preference has been to rent where I want to live and invest where it makes sense. I like the flexibility of renting and not being tired to a particular property.

    Also, the places I want to live don’t fit with my investing strategy and don’t stack up for me. So I get the best of both worlds.

Viewing 6 posts - 1 through 6 (of 6 total)

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