Have you been keeping an eye of the real estate market in Sydney for properties for sale? Currently the Sydney property market is booming, which means many people are interested in buying. For many young buyers though, it has got them very confused. While they know they want to be involved in the property market, they don’t know which route to take. Should they purchase their first home to live in, or is it more beneficial to buy an investment property? If you have been wrangling with this decision the good news is we are here to help. After collecting professional advice from a range of real estate agents and property develops we have learned both the positives and negatives on the property market for first home buyers. Ultimately it’s important to remember that there is no right or wrong answer. It’s all about determining what is best for you and your individual situation.
One thing for certain is it is imperative you determine what your goal is before you start looking. You should not go into searching for a property confused because it will only lead on to more problems. Instead, you need to have the property you want clear in your head so you can make the right decision based on this knowledge. It should be noted that the house that may be perfect to live in, may not be an appropriate investment property. Furthermore, the investment property you choose may not be suitable for you to live in.
Below we have outlined the positives of buying and living in a home, over property investment. In our next article, we will explore the positives to property investment, so make sure you keep an eye out for it.
The positives of buying your first home and living in it
1. The first home owners grant
The first home owners grant can be extremely helpful for young people looking to become involved in the property market. While the grant currently has a bunch of restrictions placed on it and isn’t considered as generous as it once was, it still gives first owners a leg up at a time when they need it. If you purchase an investment property as your first home, you give up your entitlement to the first home owners grant.
2. When you sell there are no taxes to pay
Many first home buyers don’t understand capital gains tax. These taxes are applicable to those who purchase investment properties and must be paid when the property is finally sold. However, if you purchase a home to live it you will not have to pay these taxes. Ultimately, as long as you live in your home for at least 12 months you will be void from such taxes.
3. Mortgages are simpler to gain
Currently restrictions have been placed on investment lending, which makes the loan process a lot more difficult for investors. This is especially the case for those investors looking for their first investment property. Diversely, when it comes to those borrowing to buy a home they will live in, lenders are more open to assisting. It has been known for first home buyers to get a lower interested rate, but this does really depend on the lender.
If you would like to explore potential first homes, take a look at BidRhino’s website. There are a range of different Real Estate for Sale in Sydney that may interested you.