19 Aug Thinking you might live in your investment property ‘down the track’? Maybe think again
About 30% of people we talk to have said “we may even live in this one down the track.”
While this may sound like a great idea at the time, unless your investment strategy aligns with the property, going down this path is fraught with danger – the least of which is letting emotion get in the way of a good investment decision.
Consciously or unconsciously adding the emotion of a homebuyer to an investment decision is a huge distraction
Keep your focus
The key reason for investing in property is to get a return that delivers a return of cash flow or capital growth to your portfolio, lifestyle or bank account.
Deviating from your investment strategy will only dilute your return as you’ll be forced to make compromises somewhere – whether it’s location, rental income, tax or finance. Sticking to a winning strategy will always serve you.
If you are looking at a property that you’re thinking about living in in the future, consider the following:
- Is this purchase your next home? If so, treat it as such.
- Do you know where you will be in the future and if this property will still meet your needs? Think about where you were five years ago compared to now? What’s changed for you since then?
- A location that is less desirable may provide a greater yield or benefit due to its other investment characteristics.
- What tax implications might you encounter ?
- What are the things you think about when you’re shopping for a home vs when you’re deciding on an investment property, and will they match? For example, the size of bedrooms / bathrooms / kitchens and laundries need to be functional in an investment property vs a home where space, beauty and personal features are highly desirable, but not necessarily practical!
Clarity is Key
You’ll always achieve a better result by making a strong, informed decision with an investment mindset and the facts.
Whether you are looking to purchase an investment property that is a future home or not, it’s best to speak with an expert to develop your strategy and identify the location and property that will have the most desirable outcome for your portfolio. Click below to book a call with a Cameron Bird Group Property Advisor…
Note: It is acknowledged that in some cases, living in your investment property can be a credible option to consider, we’re talking here about cases where there is a clear deviation from the investor’s overall strategy.
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