Buying to inhabit or invest |
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While the thoughts of most home buyers are consumed by issues such as location, affordability and interest rates, they could be missing a more fundamental question: should their first purchase be as an owner-occupier or an investor?
Exploring the pros and cons of both approaches may reveal the best path to property ownership for you. In today's environment of high interest rates and high rental demand, seeking sound advice before making a decision is always a wise investment. Buying as an owner-occupier Pros • Pay off your own mortgage instead of someone else's • Qualify for any first home-buyer or residential owner-occupier grants • Avoid the hassle of having to find a property manager and tenants • Have your own space to do with as you please • Enjoy a sense of pride that you own the roof over your head Cons • All the costs associated with home ownership are yours alone • Forego the extra income that in investment property can provide Buying as an investor Pros • Rent and live where you want rather than buy and live where you can afford • Receive rental income to help service your home loan • Claim expenses such as mortgage interest charges and fees, letting agency fees, insurance and property repairs to reduce your tax bill • Leave yourself free to travel • Harness the power of time and control equity through capital growth Cons • Your rental income will be added to your other taxable earnings • Face the risk of having to endure difficult tenants or tenant-free periods • Still have the expense of rent if you don't stay in the family home If you would like more information on home loans or property in Australia, speak to one of the mortgage brokers at Intellichoice today on 1300 55 10 45. |
| Last Updated ( Wednesday, 24 March 2010 10:51 ) |
Speak to a mortgage broker today to find out how we can help you with all your home loans, invoice finance, bad credit home loans and owner builder finance needs. Our mortgage brokers have access to over 800 mortgage loan products and 35 mortgage lenders.
Many people have differing financial dreams and financial planning can assist you in meeting those goals. Our financial planners aim to help grow your wealth through real estate and other investments in a safe and cost-effective manner.
Ultimately, what every investor is seeking is a strong return on their investment and you can be assured that any property in Australia that we recommend, have been selected on the basis that they offer you the best possible returns for your dollar.