Thinking about buying a property but not sure if you should go for a home to live in or an investment property? It’s a big decision, and the way you approach it depends on what you want from it. Let’s break it down in simple terms so you know what to look out for.
- Why Are You Buying?
- Buying a Home: You want a place that feels right for you. Things like how cosy it is, the layout, and even the colour of the walls might matter to you.
- Buying an Investment Property: It’s all about the numbers. You’re looking for something that will bring in rental income or grow in value over time. It doesn’t have to be somewhere you’d personally want to live.
- Location, Location, Location!
- Home Buyers: You’ll want to be near work, schools, family, or the shops you like.
- Investors: You’re looking for areas with high rental demand, good transport links, and the potential for price growth. It might not be a place you’d choose to live in yourself, but if it’s good for tenants, it’s a good buy.
- Money Matters
- Buying a Home: You’ll probably get a standard mortgage, and your monthly payments will depend on your income.
- Buying an Investment Property: You might need a buy-to-let mortgage, which usually requires a bigger deposit. Lenders also look at the rental income the property can generate before approving the loan.
- What You Look for in a Property
- Home Buyers: You’ll think about things like the garden, space for a home office, or whether the kitchen suits your style.
- Investors: It’s all about the return on investment. You’ll focus on rental income, property prices in the area, and how much work the place might need before it’s ready to rent out.
- Risks & Rewards
- Buying a Home: The value of your house may go up or down, but since you’re living in it, it’s not just about the money.
- Buying an Investment Property: There are risks like tenants not paying rent or property prices dropping. But there’s also the chance of steady rental income and long-term growth.
If you’re buying a home, go with what feels right for your lifestyle. If you’re buying an investment, focus on the numbers and what will make you money in the long run.
Thinking about buying? Whether it’s a home or an investment, let’s chat and see what options are available for you!
