This is an interesting question that arises many a time when first home buyers look to get a property. For those of us young (lets say early twenties and up) that are still living at home and single (or not at that point in a relationship to pool money into a house deposit with our current partner), there are a few options and possible outcomes to the above question. You could choose to spend the extra time at home or single and get the investment property and start getting a rental return and your foot into the property door. Or you could jump straight into it and get the home that you wanting and move in after the settlement. We will outline the pros and cons as we always do and leave it up to you to make the decision.
If You go for the Investment Property
When some of our writers were talking with our mates, we got to thinking. Imagine (or you might be lucky enough already) that you had $500,000 dollars to invest. You could probably get something half decent to make a home or an investment, and be suitably happy with your purchase.
However, what about if you were to break it up and initially get one small place in a growth area for $300,000 and then in a few years time, get another place for $300,000. Now I know the maths don’t match up, but we are making the assumption you have kept you good saving habits up during those years.
So at the end of 3-5 years, you could actually have two title deeds that you could be renting out, or live and renovate one to flip at a later date, plus have the rental return from the other.
All the while you could have a little place close to where you want to live, with the 10 year plan of selling them both, or getting your dream home.
Not bad hey?
If you go for the Home
Now this is more like the Aussie/American/British (let’s face it - they are all the same dreams no matter where you are from) to have your own place. It is a fantastic plan with all the security, inner peace and contentment of being able to go out to a cafe or dinner party and say, “Yes we own our own home.”
The unfortunate situation for many though is the fact that not many of us can afford the home we truly want; even if you take out the dream spots of smack bang in the middle of the city or right next to the beach.
But there are few things that come close to working and maintaining your own home. To be able to do what you like to it, when you like to it, and have everlasting memories.
So I guess when it all comes down to it, you need to decide what is more important - starting a home as soon as possible or investing wisely for the future so that eventually you can have your dream home.
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