Australians looking to enter the property market in 2022 continue to face home loan affordability pressures. For these hopeful homebuyers, opting to buy as an investment rather than as an owner-occupier might be a winning strategy.
That is according to non-bank lender Liberty, which also reminded borrowers that they don’t necessarily have to buy a first property to live in.
Heidi Armstrong, Liberty’s head of consumer advocacy, said there are still options in today’s competitive market.
“Rentvesting and teaming up with friends and family to buy are just a few strategies that homebuyers can consider in the current climate,” Armstrong said. “And even if you’re self-employed or have a low deposit, a free-thinking lender like Liberty can help find a way to get your home loan pre-approved, easing the pressure of the house hunt.”
Instead of delaying plans or saving up for a forever home, borrowers can invest in a less expensive home to get on to the property ladder. They can then start building equity, generate income from the investment, and take advantage of any potential tax benefits.
Investing in properties comes with risks, however, which is why home loan borrowers are encouraged to seek expert help to assess their options.
Deciding between buying a first home to live in or invest in depends on the buyers’ unique, personal circumstances and financial goals.
