first property: buy as an IP, or buy as First Home buyer

Seeking comments/feedback on this situation:
Sam, aged 19 yrs, will be living with parents for several years to come (part-time Uni for 3-4 years, saving up for next investment, commute convenience, saving on living expenses etc), and has been working in a stable job for a couple of years, current pay 75k, expect to go to 100k in 3 years. Looking to invest in property worth 650k by June this year, and then add properties over the years.

What is the better strategy:
(A) Buying an owner-occupier home using the first home concessions in ACT (stamp duty etc).

Pros: low interest, low deposit, government concessions, can re-paint, tiling, yard work etc leisurely;
Cons: can't rent out for 12 months, but have to pay rates, electricity connection charges, sewage/water etc.​

(B) Going straight for an IP.

Pros: rent, depreciation
Cons: no government concessions, higher deposit
​

Thanks !!!

 

I used the FHOG for my first investment, but back then it was $7k and no stamp duty for established homes - plus I only had to live there for 6 months.

 

Thanks for the response!
The grant is still about the same, also no stamp duty, but the living time is 12 months now.

 

I would go for a PPOR because you should be able to get more leverage and purchase a better quality property. That's what I've concluded over my years of home ownership.