What comes first??

Viewing 4 posts - 1 through 4 (of 4 total)

Benny
Participant
@benwest
Join Date: 2015
Post Count: 1
July 27, 2015 - 9:49 am
Hi there,
I’m currently saving an would be about a year off a decent deposit for an investment, however i am currently renting an do not yet own my own home so my question is would it be financially smarter to buy a investment property first or a family home ? Because i feel if i brought a family home i would be locked down for a long time and would then be a long way off starting my journey as an investor. Any advice would be much appreciated.
Benny
Moderator
@benny
Join Date: 2002
Post Count: 1,416
July 27, 2015 - 5:30 pm
Hi Benny,
Great name you have there !! ;) You sound like a younger person just wanting to find out about property investing, so let me point you to a thread that will answer a lot of questions you don’t even know you have (including the one re “do I buy my own home first, or an investment?”).
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/
Have a look there and come back with any further questions. And a big welcome to you too – I hope you get to stick around and teach others even as you learn.
Regards,
Benny
BuyersAgent
Participant
@knightm
Join Date: 2005
Post Count: 338
July 28, 2015 - 7:27 pm
Hi Benny,
As pointed out by moderator Benny there are other threads worth searching and reading. My path many years ago was to invest first, I believe this is a great option that few consider. The longer you stick around places like this the more you will learn.
Matt
Benny wrote:
Hi there,
I’m currently saving an would be about a year off a decent deposit for an investment, however i am currently renting an do not yet own my own home so my question is would it be financially smarter to buy a investment property first or a family home ? Because i feel if i brought a family home i would be locked down for a long time and would then be a long way off starting my journey as an investor. Any advice would be much appreciated.
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BuyersAgent | Precium
http://www.precium.com.au
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South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
July 28, 2015 - 7:48 pm
Welcome to the forum Benny.
Great question and always a double edged sword – fundamentally they can both work to your advantage. A PPOR for initial purchase can be used as a future equity base to make future purchases while you try to erode your debt as quickly as possible and increase your equity (renovations?).
The alternative if you can rent for significantly cheaper than the cost of ownership is to buy multiple investments before buying the PPOR – quite a few clients have significant investment portfolio and rent in their desired areas for a fraction of the cost of ownership.
Best of luck!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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Investment Focused Finance Strategist - servicing Australia-wide