Buying your first investment property before your first home may help
Buying your first home is one of the many momentous ‘firsts’ people go through in life – up there with a first love, first job and first car. But what should you do if you have fallen in love with your dream home but affordability is holding you back from buying where you ultimately want to live?
This Valentine’s Day, Mortgage Choice is calling on love struck potential first homebuyers to consider their property options. By taking a different approach to buying their dream home, potential buyers may be able to achieve their property goals sooner.
“The old expectation of first time buyers purchasing a home before an investment property is not necessarily the case in today’s market,” said local Mortgage Choice mortgage broker, Melissa Jackson.
“While affordability has improved of late, it is not uncommon for first time property buyers to dip their toe into the market by purchasing an investment property first. They then rent the property out and use the life lessons, possible tax benefits and any financial gains to put them in a better position to buy their first home.
“This occurs especially with younger people who want to get into the property market but may have been priced out of buying a home in the area they want to live in. A clever investment property purchase and a little patience could see these homebuyers-to-be residing in their desired suburb sooner than expected.”
Melissa went on to say that the first step before buying any property is to do your research and make certain your financial situation allows it. She added that potential investors should speak to their accountant or financial advisor to ensure they are aware of the opportunities and risks involved with the purchase.
“Research is the most important step before you make any decisions about purchasing a property. If you are considering buying an investment property, you want to make sure you have thoroughly investigated the property’s potential rental yield, tenancy demand and capital growth, as well as your finance options and your rights and responsibilities as a landlord,” said Melissa Jackson.
“First time buyers also need to be mindful that buying an investment property is often different to buying a home. When people purchase the home of their dreams they look for practical aspects that will make them feel comfortable living in the house. However, when purchasing an investment property, buyers are looking at whether the investment will produce a positive return and will be relatively easy to manage.
“Once buyers have a better understanding of all their property and finance options they can make an educated decision about the best way to achieve their goals.
“Australians’ love-affair with property doesn’t look set to abate anytime soon. But perhaps the way we view our perfect match for our first property is changing. Consider expanding your playing field to look for properties that could work well as a first investment property and that could provide the financial kick-start you need to buy your first home in a place where you ultimately want to live.”
For further information, call 0405 315 227, or log onto www.mortgagechoice.com.au/melissa.jackson.
For further information or to arrange an interview, please contact:
0405 315 227
About Mortgage Choice
Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises.
The company writes one in every 25 home loans in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer’s best interests to tailor a solution to them.
The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent recognition: 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2012 Australian Broking Awards Best Training and Education; 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Mortgage Choice holds an Australian Credit Licence: no. 382869, issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 MORTGAGE.