Buying An Investment Property Before First Home at Buying

Buying An Investment Property Before First Home. If you buy your first property as a home and live there for at least 12 months, you won’t have to pay capital gains tax when you sell, no matter how much the value has grown during that time. If, however, you get a loan with 20% down, you could potentially purchase another house.

Buying an investment property before your first home comes with a number of tax benefits. Buying an investment property before your first home allows you to select an area that is growing and gain from natural appreciation in the market as well as to maintain your desired lifestyle. Correspondingly though, buying an investment property first means missing out on first home owner grants, cgt exemption as well as the potential lack of stability in having your own home to live in.

I’ll briefly explain each strategy below. Buying an investment property before your first home allows you to select an area that is growing and gain from natural appreciation in the market as well as to maintain your desired lifestyle. When you want to buy an investment property before your first home, it is particularly important. If you plan to buy an investment property at any time, you need to have the capital planned in advance.