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

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.

Posted by Charles Tarbey on 07/01/2016 at 10:58 AM | Categories:

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