Buy an Investment Property Before Your Home

 Looking for positive cashflow QLD residential property suitable for SMSF?  ==>See our post dated 17 Feb 2011
There are many strategies to buying property and while many of us expect that our first property purchase will be our first home, there might be good reasons to make an investment property your first major purchase..” say Anneli Knight of SMH.

Michael Furlong is one person who chose this strategy. Ten years ago he was working as a chef in Melbourne and made his first property purchase an investment property at the age of 30.

Over ten years he built up his investment property portfolio to include 15 properties and only just bought his first home two weeks ago. He also turned his “hobby” into his business: he is now a director at MAP Real Estate and advises clients on building investment property portfolios.

“From an emotional point of view it may make sense to buy your family property first. From a mathematical and analytical point of view it makes sense to rent the home that you would like to live in now and put any disposable income that you have towards building a portfolio.

''The reason why I say that is because most people’s circumstances change every three to five years. You’ve got a single person who may become a couple who may or may not get married and may or may not have children. The last thing on the mind of a 25 year old is moving to the outer suburbs in a school zone,” Michael says.

“Why not rent the type of property you want to live in now then build a portfolio. When you do need to buy your first home, you will be a lot further along than when you first start buying.”


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