As a first-time home buyer, it’s common for you to feel overwhelmed and unsure on what the best way to getting into your new home is going to be. With prices skyrocketing around Australia’s major cities, you may be hesitant to bog yourself down with a mortgage that doesn’t seem to have an end to it. If you want to secure a piece of land in the city before the demand becomes even higher, you could look into renting out the home you purchase to help repay a steady amount of your mortgage before you settle in yourself. However, living in the home yourself also has some economical and practical benefits to experience as well. Whether you live in it or rent it out, purchasing your first home is a daunting task. For more information, be sure to read through Newcastle Permanent’s first home buyers guide.
Don’t Be Greedy!
Buying your first property as an investment can have its perks. If you can wait long enough to allow your first home purchase to be an investment before you want to start putting your own bags in, you might be onto a winner! Since you would be buying this home as one for someone else to live in, you’re able to detach yourself form all of the emotions. You might be able to bag yourself a cheaper home keeping mind that it doesn’t have to be your own dream home but a home that will suit many dreams for a range of your tenants. With you tenants, they will be the one’s paying your mortgage which would help you to pay off your loans sooner but it’s important not to assume that each rental deposit will cover the costs for your home. Depending on a number of factors, these costs can be tax deductible which can include; cleaning costs, interest payments and fees and gardening costs. It’s crucial when purchasing an investment property you have the right home loan. Surprise costs and expenses that may stack up from your home shouldn’t put you out of pocket with the right lenders. Newcastle Permanent’s Premium plus Home Loan Package features a comparison rate of 4.27%PA giving you peace of mind when it comes to your finances.
Keep It Simple.
Flipping the table to look at the other side of the argument, let’s have a look at some reasons why the first home you buy should be the one you live in! Depending on which state you live in and various conditions, when buying your first home to live in, you can be the recipient of a first home owner’s grant. These are not usually offered on investment properties and it may be just what you need to secure a deposit on your new home. Not only can you receive funds from the government, but you’re also not expected to fork out for a magnitude of expense or unnecessary taxes. While many expenses are tax deductible when it comes to an investment property, some aren’t. This could leave you with debts accumulating depending on your situation and the home you purchased. With a home that you live in yourself, you’re exempt from a capital gains tax when you go to sell your home down the line.
When buying your first home, it is so easy to become bogged down by an endless string of doubts and questions. Deciding on whether or not to live in and rent out your first home is a life-changing choice and sadly isn’t one that I can give you a quick answer for. However, when so many of the decisions are left up to you as homebuyers, you want to know that you loan is with the right lenders. Visit Newcastle Permanent to read through their first home buyers guide to answer the pesky questions for you and to show you the best interest and comparison rates when it comes to choosing your first home loan.