When purchasing a house, many people ask themselves the same question. Should they live in it themselves or should they invest in the property by renting it out? A lot of buyers would rather invest in their first property than live in the houses themselves. Both options come with advantages and disadvantages, which is why you need to seek professional information and advice regarding the market.
Why Should You Invest in the Property?
Prices are continuously skyrocketing in the Australian market, which is why it’s not always easy for first-time buyers to keep that property. This is why investing may sound like a good idea so that you can secure it.
There have been many cases of people who purchased a small property and had to make significant compromises in order to hold on to it because affordability was a problem back then. That’s why, nowadays, many people choose to invest first, so as to avoid those compromises. The result is that later on, they will afford to buy a property that is much better than the former one.
The house you will invest in will have a rental income of its own, which means that you, the investor, will be able to handle your loans better. So now you may be thinking: is investing in a property the right thing for you?
Investing in a Property
One thing you need to be aware of is that, when you buy a property, you can’t emotionally attach yourself to that property. Your emotions regarding the house should be left at the front door, and you will need to buy with your head rather than with your heart.
For example, if you chose to rent out the house of your dreams, you will definitely be left with strong emotions regarding the property. So rather than investing in a home that you would love to live in, choose a property that you wouldn’t necessarily want to live in. When focusing on the rental growth and the future sale prices, you need to consider various things to make your investment profitable.
At the same time, you must get used to the fact that you’ll become a landlord. For example, if the place remains vacant for a longer time, you need to be confident you can cover its costs. Also, if your tenants prove to be on the nasty side, you need to know if you can cope with the stress.
Things to be Aware Of
You will need to determine if this investment will affect your future. How will the costs change your life plans if you decide to buy your own home? Take into consideration that the repayments still need to be done even after you decide to start a family.
There are some aspects that need to be taken into account regarding entitlements of stamp duty concessions and grants for first home buyers. That’s why you need to do proper research first.
It’s not easy to invest, and it may not be the best option for everyone. Still, if you can handle all the issues mentioned above, you can definitely take advantage of your investment.