First home buyers

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First home buyers – can’t afford where they want to live?

We have a few younger members in our team and they are looking to taking the step toward to great Australian dream and buy their first home.

Here is the problem (which is not only affecting our younger team members here, but first home buyer across NSW). The first home owners grant (FHOG) is $15,000 but only available on brand new properties. For budget sensitive clients this will price them out of the market. In our teams case the problem was the location they were forced to look at properties 40klms away from the city, nowhere near work or their family, all due to Sydney’s┬áproperty pricing.

What to do they do in this case? It is quite simple, invest in property!Not any property Invest in a property in a high growth rate area, Great rental yields, take advantage of the government tax deductions and remain living wherever you want to live.

Here are the some pros and cons:

Pro: you get into the property market and start growing your wealth straight away

Con: you will pay capital gains tax on the money you make on an investment property (paying tax means you are making money)

Pro: massive tax deduction on you income tax (owning a home will never provide you with tax deductions)

Con: you will pay capital gains tax on the money you make on an investment property (paying tax means you are making money)

Pro: massive tax deduction on you income tax (owning a home will never provide you with tax deductions)

Con: you will pay capital gains tax on the money you make on an investment property (paying tax means you are making money)