If you’ve always thought your first home needs to be your forever home, then we’ve got some news for you! In fact, purchasing a first home as an investment property is a common choice for homebuyers who can’t afford to buy in the city, but aren’t ready to give up the inner-city lifestyle yet.
Of course, getting into the property market early is also a great way to start building your portfolio and start taking advantage of capital growth. But knowing how to buy an investment property as your first home can be tricky. And that’s where the experience of Darren Walters and the New Home Consultants at No1 Property Guide comes in.
With more than 20 years of experience in property, finance and lending policies, Darren has an in-depth knowledge of the market. He has helped thousands of renters become homeowners using his no or low deposit system. The first step in Darren’s system is simply getting pre-qualified using our simply pre-qualification form. From there, our New Home Consultants can tell you exactly what you can or can’t do towards using your first home as an investment property.
Mathew & Madison – Homeowners Since 2020
Gina – Happy Homeowner
Will I be Eligible for the First Home Owners Grant?
Generally, no. First Home Owner Grants (FHOG) across Australia all share the requirement of living in your home as your principal place of residence. However, this is usually only for a set period.
While it varies from state to state, this requirement is usually only for around 6-12 months. Once you’ve met these criteria, you’re free to do whatever you want with the property.
This creates possibilities of using your first home as an investment property. As long as you’re willing to live in this property for the first 6-12 months of ownership.
Of course, this is only necessary if you’re planning on utilising the FHOG. If losing out on the FHOG isn’t a big deal to you, then you won’t have to worry about this. You can simply find the right package for your needs and build your investment property from the start.
This is actually a common investment method known as ‘rentvesting’. So, while you gain equity and capital growth in your home (and someone else pays off your mortgage), you can rent and live in your preferred area. Whether it’s closer to work or you just prefer the CBD, rentvesting is a great option if you don’t want to move out of the CBD. But do want to start building your property portfolio.
Can I Use my Super to Invest in my First Home?
Unfortunately, no. There are options for using your Super to purchase property, however, there are several restrictions. You can find out more in this article about using super to purchase a property.
But the short of it is, you can’t live in a property purchased through your Super. It needs to be an asset controlled and managed through your Super. And rented out to someone who isn’t a family member or friend. This means, while you can use your super to purchase an investment property, it can’t be used as your first home.
How No1 Property Guide Can Help You Use Your First Home as an Investment Property
Seline & John – Homeowners Since 2021
Of course, there’s also the option of drawing upon the equity of your first home to act as leverage for a second property. Using the home you already own to create a platform to build your portfolio off is arguably the most popular investment method in Australia.
At No1 Property Guide, we’ve helped hundreds of clients access the equity in their homes to build their dream home. While using the first as an investment property. The first step is simply knowing your factual options.
If you want to know how you can use your first home as an investment property, simply fill in our pre-qualification form and one of our New Home Consultants will give you a call. From there, we’ll guide you through the process to help you start climbing the property ladder today.
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