Buying investment property before you own your first home?

Credit and mortgage advice Forums Buying Your Home Buying investment property before you own your first home?

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    • #218954
      Anonymous
      Inactive

      Can you buy investment property while still renting?

      I am wanting to purchase my first positive income investment property (in another state) but am still renting. I would be using equity from my parent’s property portfolio for the deposit.

      Is there a ‘catch’ (tax-wise) in doing it this way? I have read books on property investment but they all assume one owns their own home already.
      Actually chats… I would have to disagree with you there….. having a portfolio of investment properties in several states and areas is a very good idea investment/tax-wise…

      There is a set strategy (the 20 must ask questions) to buying positive income property so that you can guarantee you will get more money back on tax that the property cost you and you can calculate it all before you even buy the property.

      Most property investers focus on negative gearing, but this doesn’t guarantee a positive income!

      PS. I’m in Australia, not USA…

      You are right about the loan interest rates yeah, plus I would miss out on the first home owners grant so yeah I might be better off buying a live-in property first – only haver to live in for a year anyway then could rent it out…



    • #284128

      Sure you can.
      Whether it is wise is another question.
      I’d recommend buying a condo or house, owner occupied, and renting out a BR or two while you learn to be a LL.
      Long distance LandLording is not a good thing, rife with dangers. Too many things that can go wrong. Hiring an agent may mean no positive income flow.
      Investment property requires higher down payment and higher interest rate than ower occupied property.

    • #287368
      Anonymous
      Inactive

      Bad idea.

      I would buy your first home (prior to any other investments). Once you get your home and start establishing equity, then you will be in a great position to invest in other property. This is the simple strategy to wealth.

      In terms of tax credits, it will still be better to buy your 1st home, in which you will receive a $8,000 credit.

      Good Luck

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