Rent VS Buy

This broker will always recommend taking advantage of all the government throws at you to get into the property market for the first time. For example in QLD & NSW you get 15k for a brand new home, in WA it’s 10k for the same. You also save on stamp duty etc. BUT… you may not want to live in the areas you can afford and keep the lifestyle up, be close to work, family etc, so what can you do? Simple! Using your savings you can still buy property in areas (even interstate) that are pegged to rise, keep paying rent in your chosen location, and benefit from capital growth of your investment and huge tax benefit to your income. Depending on your job, if there is a ‘work from home’ component, some of this rent and utilities may be tax deductible also! 

Your First Home Owner’s Grant in your state will most likely be around when and if you are ready to buy your first home (some of my clients have multiple properties and rent in their ideal location), who knows by the time you are ready your investment portfolio may have enough equity to bounce off to get in there with greater ease. If the need to own and live in your new home is too overwhelming and you must do so first, that’s fine. Just be warned that your chosen neighborhood may not be the big gainer you hope for, and if you are planning a portfolio this may set you back! So keep this in mind when going for your new home, talk to independent experts (not the salesman selling you the property ;)) about where they see your suburb in the short/longer term. Don’t get sucked into ‘panic buying’ if something doesn’t feel right that’s usually a strong indicator. A good tip here also is to buy or build your new home in a good growth area and live there for the State Revenue Dept contractually decreed length of time (usually 6 months) and then convert to an investment, returning to your desired rental location. Give serious consideration to buying or building a brand new property as this gives you more $$ from the Gov, and let’s face it you gotta love that new home smell!