It is a good idea to consider using your first home as an investment property. Although some people first purchase a home to live in and later on consider property investing, you can start sooner and reap the benefits of your investment. All you need is a buyers agent or a mortgage broker to guide you in the right direction.
Australians prefer to live close by to their work and where all the action is. This is the reason why most people prefer to live near capital cities. However, with prices increasing across every city, it has become incredibly challenging for buyers – particularly first home buyers to purchase real estate close or near to the city.
This sentiment shift is one of the reasons why you should consider purchasing an investment real estate before your first home. Here is why it is better to buy your first property as an investment, and rent where you love.
Benefits Of Purchasing Your First Property As An Investment
An Additional Source of Income
When you purchase a property for the purpose of renting it out, you get to reap the benefits from your investment the moment you find tenants. Every fortnight or so, you earn a certain amount in your account. You can reinvest or use it for paying your bills and debts.
In case of any unexpected financial crisis, you can fall back on the income from your rented property.
You Are Able To Pay Off Your Mortgage Easily
While looking for real estate that you would like to call your home, you come across one but cannot afford to purchase it right now. Do not lose hope. Your best bet is to go to a buyers agent or a mortgage broker to help you acquire that property and rent it to a tenant. The rent that you receive will help you pay for the mortgage. As time passes, your financial status will improve. You can then move into the house yourself or purchase a different property!
The Paybacks Of Capital Growth
If you compare the returns you would make from cash flow and the returns from capital growth, there is no doubt that you would make a lot more from capital growth. The wealth from property is attained through long-term appreciation of capital, which you can use to purchase more properties.
Take the wise advice of successful property investing entrepreneur, Zaki Ameer, founder of Dream Design Property and consider property investing.
The Bottom Line
Be smart about the investments you make. You want to put in your money which gives you maximum returns. With the passage of time as you build a property investment portfolio, you will gain a profitable return from your real estate investment.