A lot of first-time buyers wonder whether they can buy a property as an investment before ever living in their own home.
The answer is: yes — you can absolutely invest first, and many young Aussies do.
The key is understanding how it works, what rules apply, and what strategy suits your long-term goals.
Here’s the simple breakdown.
1. Yes — your first property can be an investment
There’s no rule that says your first home must be the one you live in.
You’re free to buy an investment property first as long as you meet standard loan requirements like income, deposit and borrowing power.
This strategy is becoming more common because:
- Rents are high
- Entry-level investment areas can be cheaper
- You can live where you want and buy where you can afford
- You start building equity earlier
It’s often called “rentvesting” — renting where you want to live, and investing where you can afford.
2. What’s different when your first home is an investment?
There are a few key differences between buying an investment vs buying to live in:
✔️ Loan type
Investment loans can sometimes have higher interest rates, depending on the lender.
✔️ Deposit & borrowing power
Some banks require a slightly higher deposit for investment loans, but others still allow 10% or even 5% depending on your strength as an applicant.
✔️ Government incentives
You won’t be eligible for:
- The First Home Owner Grant (FHOG)
- Stamp duty waivers for first-home occupiers
- The Home Guarantee Scheme (5% deposit, no LMI)
- These are only for people buying a home to live in.
✔️ Tax benefits
You can claim investment deductions like:
- Interest
- Depreciation
- Maintenance
- Property management fees
This helps make the investment more affordable.
3. Why some buyers choose to invest first
Buying an investment as your first property can make sense if:
- You can’t afford to buy where you want to live
- You want to get into the market sooner
- You’re chasing growth or rental returns
- You want to build equity before buying your own home
- You see long-term wealth as a priority
You can later use the equity from your investment to buy your future home — which is how many buyers upgrade without needing a massive cash deposit.
4. Should your first property be an investment?
It comes down to your goals.
Buying an investment first is great if you're aiming to build wealth early, enter the market sooner, or take advantage of strong rental demand.
But if your main priority is living in your own place or using grants/stamp duty concessions, then buying an owner-occupied home first might make more sense.
The smartest approach is choosing the option that gets you ahead — whether that’s buying to live in or investing first.
