• First Home Buyers: Owner-Occupier vs Rent-vestor



    What kind of buyer are you going to be? We weigh up the options of becoming an owner-occupier or rent-vestor. 


    So, you’ve taken the first step towards home ownership… saving like a demon. And now that you’re winning the adulting game, what kind of buyer are you going to be? That’s the big decision that’ll affect all future decisions UNTIL THE END OF TIME… well, not really, but on the property buying side at least.

    Stumped? Well, when you come to this fork in the road, there’s two paths to consider: 

    • Owner occupier –forget those future kids, just look for something that suits you right now…and get into the property market. 
    • Rent-vestor – sometimes you can’t afford to buy where you want to live, but being a landlord might be your in! Stay living in your suburb of choice (and keep eating at your favourite local brunch spot) while someone else is helping to pay your mortgage in an up and coming suburb (winning!). It is also worth remembering that interest rates generally vary between investor home loans and owner-occupier home loans. 

    Each option has pros and cons, of course. You need to think about loan types (yes, they’re different), the rules around government grants and stamp duty (which are different in each state), and the implications when tax time rolls around (nobody wants to be on the tax office’s bad side). 

    Before you get overwhelmed, there are specialists who can help with all your questions, so it’s probably best to draft in their help at this point. And when your plan’s sorted, you can just worry about saving that cashola.



    Originally published on flatmates.com.au


    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram

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  • Disclaimer:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.