Buy where you can afford, rent where you want to live

Over the past three and a half years, real estate prices in many areas have grown significantly. This has led to some buyers finding it difficult to purchase a home in the area they would like to live in. In this situation, I believe that there may be an alternative strategy to owner-occupying in order to purchase property.

Many people may find that renting in an area that they want to live in and buying a property in an area that they can afford could be a useful way to enter the real estate market.

By choosing to do this, buyers may be able to make a property purchase sooner than if they had to save a deposit for a home in the area they wanted to live in. There are also other advantages to owning an investment property and renting where you want to live, such a taxation benefits.

If you are able to build equity in an investment property, you could use it to finance a purchase in the area you want to live in at a later date. Alternately, you could use the equity to purchase additional rental properties and create a portfolio of investment properties.

Buying where you can afford and renting where you want to live won't be the answer for everyone, but it can be a useful way for some to enter the property market when they might otherwise struggle to do so.


Disclaimer: The opinions posted within this blog are those of the writer and do not necessarily reflect the views of CENTURY 21 Australia, others employed by CENTURY 21 Australia or the organisations with which the network is affiliated. The author takes full responsibility for his opinions and does not hold CENTURY 21 or any third party responsible for anything in the posted content. The author freely admits that his views may not be the same as those of his colleagues, or third parties associated with the CENTURY 21 Australia network.