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  • Buying a home and buying an investment property offer different benefits, and the right choice depends on your lifestyle, finances and long-term goals.
  • The right option depends on what matters most to you, whether that’s flexibility, lifestyle, tax considerations or the sense of security that comes with owning your own home.

Saving a deposit and buying your first property is a dream held by many Australians. But that first property doesn’t have to be one that you move into and live in.

One alternative is to buy an investment property. This can help you get a foot on the property ladder while you continue to rent or live at home.

Which is right for me?

Choosing between a home and an investment property will depend on your personal circumstances and the property you’re thinking about buying. Consider your financing options, including investment home loans and fixed rate or variable home loans.

Benefits of buying an investment property

Tax benefits are one potential benefit of owning an investment property. As part of a negative gearing strategy, you may be able to claim tax deductions on your maintenance costs and other outgoings such as repairs, mortgage interest and rates. Note that the 2026-2027 Federal Budget has announced reforms to negative gearing arrangements for investors, we suggest speaking to your tax adviser or accountant for more information about how these changes could impact you.

Another benefit of continuing to rent is that you may be able to live in a better property or area than you could afford to buy. Rents in high-end homes tend to be less than your mortgage repayments would be should you buy that home. So you could buy your investment property in a more affordable suburb while continuing to live in your preferred area.

Benefits of buying a home

There are of course many benefits to living in your own home.

Being able to renovate to suit your tastes and needs, having security of ownership, and feeling a sense of pride in your home are important factors to many people.

Unlock our low variable rate with the Digi Home Loan

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  • 6.09 % PA
    Interest rate*
  •    6.22 % PA
    Comparison rate*

*Digi Home Loan (Owner Occupied Principal and Interest) for new borrowings with  Loan to Value ratio of up to 60%, when compared to CommBank’s other advertised loan rates. Min. new borrowings of $100,000. Comparison rate warning. 

How does buying an investment property differ from buying a home?

When searching for an investment property, rather than looking for a home that you want to live in, you should search for a property that will be popular with the type of tenant in that area. Transport links, proximity to good schools and rental demand for that area are often important considerations.

Instead of looking in a suburb you might want to live in yourself, consider a suburb that offers the potential for good capital gains and/or high rental returns. Our complimentary Property and Suburb Reports provide the latest information on new listings, auctions, recent sales and suburb profiles.

How much can you borrow?

Our home loan borrowing calculator can help you work out how much you might be able to borrow, while our repayments calculator can help you understand what your repayments would be.

Whether you want to buy a home or an investment property, use our Budget Planner to help you work out how much you could afford to repay each month.

You can either start your home loan application online or book time with a Home Lending Specialist, instantly.

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs. You should, before acting on this, consider the appropriateness to your circumstances.