Buying first home to live in vs buying investment property

Hi all

I am very new to all of this and would like some info if possible.

I am 32 now and married with my income only and a 11 week old baby.
I am saving every week towards a deposit and have been looking into buying investment properties instead of a first home.

I am split in what to do.

I also want to consider the future of my family and child and how all these decisions will affect all of us.

I was considering buying cheaper investments outside sydney or interstate with the highest rent possible vs saving more deposit and buying a more expensive house to live in here in sydney.

Any info would be fantastic.

Cheers
John.

 

Sydney is expensive but if you can buy one here you will have access to 2 tax strategies:
1. rent it out now, claim all deductions, negative gear for a few years and then move in. Any CGT on sale will be reducing as a % as time goes on.

or

2. buy one now to live in, live in it briefly, the rent it out. It can be exempt from CGT completely if you sell within 6 years or move back in within 6 years.

 

Hi John, not an easy question! Yes you can do the maths of investment properties (IP) vs principle place of residence (PPOR). But not all of us can be completely non-emotional about it. It might be worth talking to an independent (rare but they do exist) financial advisor.

At the end of the day, you have to go with the SANF - sleep at night factor, if your family have their hearts set on their own home, then maybe IPs can come down the track. If you have portable work/move around etc, then an IP first might work.

I've been fortunate. I live in a house provided by husband's employer and we have an IP nearby that we plan to retire into in 20 years time.

 

@JohnHalas search for 'rentvesting' here on the forums, you'll get some excellent info

 

Can you move?

Not easy to answer... especially with the little one, but it's a question that is at the very least worth a ponder.. .

Brisbane or Adelaide or Perth or canberra (even some parts of Melb) are half the price of Sydney...