Whilst these may be challenging times for first home buyers, who typically like to buy in established and therefore more expensive areas in Sydney, there may be a more affordable alternative to achieving that great Australian dream. Recently we have experienced a percentage of our first home buyers decide to buy an investment property and rent in their desired suburb.
Their strategy is to build a portfolio over time that will provide them with choice in the future. One such choice might be to sell some of those investment properties to provide a substantial deposit on their own home.
This may seem like the long way to achieve the home ownership goal but it actually has some great benefits.
The first being that it allows the first home buyer to create wealth, potentially owning more than one property, all being paid for by the tenant and the tax man. If there is a shortfall in holding the investment property, that is also tax deductible.
The second benefit is that the first home buyer gets to live in the suburb they want whilst building their property portfolio.
At times it has been argued that “an investment property is not the same as owning your own home!”
Wouldn’t you rather own several homes and have other people help you pay for them?
Maybe it’s time to challenge how that great Australian dream can be achieved.