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?
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-4697967In 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
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
michael@propertunitybuyersagents | Propertunity Buyers Agents
http://www.propertunity.com.au/
Email Me | Phone MeReal Estate Buyers Agent for Sydney & Central Coast
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,
ABHi 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 MeFinance Strategist and Investor
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.
Mike
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