The pros and cons of being a rent-vestor vs. owner-occupier

The pros and cons of being a rent-vestor vs. owner-occupier

Buying a property can be one of the biggest investments you can ever make. However, it may be tough for you to decide if you want to live in the property or consider it as an investment property. One of the best ways to make your property investment is by renting it. 

The real estate world is huge, and many things go on here. What appears to be simple and easy is not. You may want to opt for the best home loans in Brisbane to get through it. However, when you choose loans, you will need to work closely with a mortgage broker who knows the entire thing. 

Rent-investor and Owner-occupier

Both of these can be effective financial options. However, each of them has its pros and cons. You may consider comparing them to understand which one would suit you the most. 

When you take the best home loans in Brisbane, you will be able to decide only when you work with the mortgage brokers. When you purchase a property and live in it, you may be eligible to get government grants and perks for stamp duty concessions. On the other hand, you will need to pay less tax when you rent your property in case  of negative gearing. 

Invest first and occupy later

Experts recommend that you need to invest first and then occupy the property. In Brisbane, first-time buyers can get confused about the property because they are so expensive. 

Rent-vesting is a very new concept that not many people are familiar with. In the case of rent-vesting, you buy a property and then rent it, and as owners, you live somewhere else. This can be one of the biggest savings. Furthermore, it will also help you get easy approvals for the best home loans in Brisbane

Although rent-vesting appears to be fruitful, it may have its disadvantages. With this approach, you may not be eligible for receiving the various stamp duty concessions given to homeowners by the state governments. 

As the investor, buyers may get some tax concessions. Therefore, you can reduce the interest for a home loan as a deduction and reduce the overall taxable income. As the rent-vestor, you may need to manage bigger charges such as maintenance and management of the property. 

Depending on the option you choose for the property, the lender may provide different amounts. If you are an owner-occupier, you can get up to 95% of the overall purchase price. However, if you decide to rent-invest the property, you may be eligible for only 80%-90% of it. The remaining need to be given off as an upfront investment in property. 

When you choose the best home loans in Brisbane, you need to develop the best strategy. Even first-time home buyers have very stringent rules about owning the property. 

No matter how many years you plan to live in the property, you need to develop the best investment strategy. When you prepare a strategy, investing becomes easy. Brokers at Vlend can help you manage the basics and get the best deal on the property.

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