I have been asked this so many times -
Buy to Invest or Buy to Livein ?
My answer?
Both options are good and it depends on your circumstances , what you can afford, goals , view of the property market on 20 years and propensity to take risk !
When we decided to enter the property market , we could only afford to buy a 1 bedder, but wanted to live in a house!
My wife wanted to buy
- a home for emotional reasons . a place to call her own, pride of ownership
- a home to create cherished memories.
- a place that she could not be asked to leave - a feeling of security
- Pay the home off as quickly as possible
- Financial predictability (although interest rate hikes have been a killer of late!)
- Freedom to renovate
I wanted
- To live in a property we couldn’t afford to buy
- A property that would grow in value
- A property that we could afford to buy
- Flexibility (renters are free to move and are exempt from home maintenance)
- A property that we can rent out and get negative gearing
- A property in an area that has maximum growth potential
- A property that if we had to sell - there would not be emotional heartache
- A property that we could gear to the max (best to grow wealth is to leverage)
We decided to buy an investment property 35 years ago . And over the years - instead of paying off the loans - we have acquired a portfolio of properties - all geared - and still rent !!
The retirement strategy - sell a few to pay off the mortgages and live off the rents of investment properties!
Is this the right strategy ?
Not sure - but it was a plan - we made a decision and we took action !
This strategy has enabled us to buy our own home if we so desired (however, we are happy where we live)
Are we financially better off with buying investment properties ?
I think so :)
Both strategies need the following priorities
- location,
- amenities,
- proximity to schools and workplaces,
- potential for capital growth and
- market demand.
If you are looking to enter the property market these are the 5 things you need to do
- do your research,
- evaluate your options,
- assess your goals and create a plan
- seek expert advice, and
- make an informed decision and take action!!!
Buying your home is an exciting adventure and it’s potentially the most expensive and potentially valuable decision that you will make!
I would be delighted to sit with you and help you model a few scenarios - and of course help you find the right loan !
Ask me a question . I am here to help
#property #realestate #investment
#buyersfirst #10x
