Investing for Renters

Owning your own home may be the Aussie dream, but is it the right move for you?

Instead of buying your first home to live in, it can pay to buy an investment property instead.

It may seem strange to hear but there are some persuasive arguments for continuing to rent whilst establishing a property portfolio.

Of course, renting isn’t for everyone. The inability to renovate and put personal touches on a home can be frustrating, and being limited to a 12-month rental agreement can mean having to move just when you’ve got settled.

Also, by purchasing an investment property you miss out on the First Home Buyers grant. This can be off-putting for many first time investors and we recommend setting out a cost/benefit ratio plan to decide whether it is worth forgoing the grant. While it may seem like a big drawcard, the amount you receive is a relatively small figure in a long-term investment plan.

We suggest you start by focusing on your long term goals. Consider the age you want to be when you achieve financial independence. Talk with people who have already started investing to gain some insight into the kinds of challenges that lay ahead and the sacrifices you may need to make. Ask your parents whether they are willing to become guarantors, or if they would consider contributing towards the deposit for your first purchase.

One of the key points we make here at Nieuvision is that everything comes at a cost. To achieve your property investment goals you will need to make sacrifices and these sacrifices may seem significant to a younger/ first time investor. Regular social outings might have to be missed to cover investment costs, going out for dinner 3 times a week will be unfeasible – keep focused on your goals, it will be worth it in the long run.

Purchasing your first property is a complex investment and big financial responsibility. Whether you decide to invest in property while renting, or choose to go ahead and buy your first home to live in, the main aim is to take that first step into the property market.

We cannot say this enough: get some professional advice.

Do plenty of research by yourself if you have the time, but why go to all that bother when you can consult someone who has years of industry experience?

Our team of property investment advisors have all the latest information and statistics at their fingertips and are just a telephone call away.

Contact us today on 1300 832 554.