Should First Home Buyers Buy a PPOR or Investment Properties?

You’ve saved the deposit, stalked listings, maybe even spoken to a broker. Now comes the fork in the road most first home buyers face:

Do you buy a place to live in, or do you buy one that helps you get ahead?

The traditional route says go for the Principal Place of Residence (PPOR). Move in, paint the walls, plant a veggie patch and settle in for the long term. But there’s a growing shift among younger buyers who are choosing strategy over sentiment. And they’re not wrong to question the default path.

The emotional appeal of a PPOR

There’s something undeniably satisfying about owning your own place. No inspections. No landlord. No rules about wall hooks or pets. A PPOR feels like security, like you’ve made it.

But here's the catch. That sense of security can come at the cost of flexibility. You might end up buying in a suburb you wouldn’t have otherwise chosen, maxing out your borrowing power and locking yourself into one very big, very non-income-producing asset.

It might look like a smart move now, but what does it do for your long-term wealth?

The case for going investment first

Some first home buyers are flipping the formula. Instead of buying the home they want to live in, they’re buying the property that makes the most financial sense. In other words, they’re asking,

What will actually move me forward fastest?

An investment property, done well, can do a few key things:

• Help you enter the market sooner by targeting more affordable areas
• Generate rental income that contributes to your loan servicing
• Open up tax deductions that don’t apply to owner-occupiers
• Build equity that you can later use to buy the home you do want to live in

It also allows you to rent where you want to live now, without compromising just to get your foot in the ownership door.

In a way, it’s about getting the money working first, then shaping the lifestyle around it instead of the other way around.

What’s the real goal here?At the end of the day, buying property isn’t about ticking a box. It’s about creating options.

It’s about choosing a path that helps you grow your financial position instead of limiting it.

A PPOR can be the right move if it aligns with your long term plans and gives you room to grow. But if it’s stretching you thin or locking you into a place you’ll outgrow, it might be worth thinking bigger.

The first property you buy doesn’t have to be the one you live in. It just needs to be the one that works hardest for you.

Want help making that call?

Reach out at enquiries@propertyclub.com.au and we’ll walk you through your options. No pressure, just strategy.