Buying An Investment Property As Your First Home, What You Need To Know

Entering the home buyers market with an investment property may be the road less travelled, but it may be an option for you. Before you commit to this decision, learn the ins and outs so that you are best equipped for this investment arrangement. Let’s take a look.

 

Emotion plays no part

Everyone will tell you that buying your first home is incredibly emotional, and they would be right. When your first purchase is an investment property, you need to objectively assess the asset on its merits and make a balanced decision based on facts, numbers and trends. Always do your research e.g. assessing the average rental yields per suburb. 

 

You may need to do some work

A key consideration when contemplating an investment property is the work that you may need to do on the property to make it immediately liveable for your tenants. This work might be legally mandated, or renovations to improve the cosmetics to help you get in tenants quicker but may potentially increase the rental agreement. You may also find that furnished properties attract a higher quality of tenant.

Consider a home that is newly built or has recently been renovated rather than a older property that may require immediate renovations or maintenance. 

 

Rent pays for the mortgage

Generally speaking, the main driver for first home buyers choosing investment properties over a home is the mortgage payment strategy. Positive and negative gearing can shave considerable time off the life of your loan, allowing you to buy and live in your next purchase sooner, or repeat the investment process once again. Crunch the numbers and ensure your financial position can make this decision viable.

 

Management obligations

If the purpose of buying your property is to automate your income with an investment that works for you, you may need to adjust your mindset slightly. True, your investment will earn money for you – but that doesn’t mean you can ride off into the sunset just yet. Having an investment property does come with some management obligations, which vary from communicating with real estate agents right through to direct tenant contact. Understand your owner obligations before you hand over the keys, and weigh up whether that investment of your time will work for your lifestyle.

 

If you’re unsure, chat to our friendly team who can put you in-touch with our trusted partner, Mortgage Link.

 

Talk to us

Similar News

It was announced this week that both Liberal and Labor Parties will underwrite First Home Buyers to obtain finance, with a minimum deposit of 5% and no Lenders Mortgage Insurance.

The average first-home buyer couple could buy a

While it may seem like a modern idea, landscaping has been used for centuries as a means of cultivating more beautiful, functional areas in nature. These days, the phrase is mostly used to describe the laying out and development of

You’ve been to property inspections every weekend since before you can remember, and you’ve finally hit that magic number that secures your home deposit. When your hands close around those keys, the magnitude of your investment

The time has come, and wasn’t it a journey? When you gear up to buying your first home, timing is critical to the price you can expect to pay, and the process that follows after you make an offer.

Here’s why now is the time

When you tell your friends and family that you’re buying your first home, the questions are always about the ‘where’. Location is one of the main considerations on where to buy or build your new home.  How do you decide where

Whether you’re buying an existing property, or building new, finances are going to be a huge factor. Property is a sizeable investment, so it’s important to have all of the information when making spending decisions.

So, let’s

When it comes to purchasing your first property, the amount of government fees and extra add-ons can be a little overwhelming. After all, you likely haven’t had to deal with any of this before, and it’s natural to be anxious about

Having our own space to come back to after a long, hard day is an incredible feeling. Although as human being’s, it’s only natural that we sometimes create mess and clutter in our lives. But what we don’t realise is that clutter

Have you always wanted to start your own fruit and veggie garden? If you are moving into a more permanent place or your forever home – now is the perfect time to start with the arrival of spring. Let’s take a look at some tips and

That first mortgage is always the not-so-fun part of the homebuilding journey. No matter how much you have saved, buying a property is always a large investment. That’s why it’s important to understand every option available to

Are you looking to buy or build your first home?

Here is where House and Land comes in.

The hassle has been taken out of finding a home design that will suit the block you’re after. Receive a home that has been chosen to maximise

Happy Checklist Day!
That’s right, October 30th is Checklist Day! At Hoot Homes, we know how stressful moving out for the first time can be. To take the hard work out – we have put together a full-proof checklist for first-time

For anyone that has been paying attention to trends in interior decor, the explosion in popularity that indoor plant styling has seen is practically impossible to ignore. From simple little potted succulents to veritable forests, greenery

For anyone that has ever wandered around a display home in complete awe, you  may not be aware that a few of the beautiful features and fittings may be additional upgrades!

This means additional costs to the base price advertised.

If

Are you a first home buyer or first time builder? Thinking that building new or buying in the Sydney market is just too darn expensive? Think again!

With new government initiatives and assistance helping newbies into the property

Join our

fab newsletter!

See our Jump Start Home & Land Packages

for first home buyers

  • 5% Deposit
  • No Mortgage Insurance
  • No More To Pay Untill Completion

Not a first home buyer? Head over to our

Home & Land Listings

Filtering homes