Get started in property investment
The issue of housing affordability and the difficulty of getting into the property market is a staple source of discussion and media coverage in Australia.
And despite all the government grants and incentives to help people buy their first home, it seems like people will always complain about the difficulty to get into the property market.
Is it really that difficult? Are house prices beyond many people’s means? How can we make home ownership and property investment more affordable and accessible to many people? Here are some tips to get started in property investment:
Start as early as you can
If you really want to get into the property market, you need to make a conscious decision and focus your efforts to reach your goal.
There’s no need to wait for a ‘perfect time’ to get into the market as there is no ‘perfect’ time.
As we’ve said in previous articles, time in the market always beats ‘timing the market’, which means the earlier you start investing and the longer your investment time horizon, the better chances you have of generating healthy returns.
Rather than trying to ‘time’ the market, spend more time in the market.
Set lower and realistic expectations
One of the big hurdles for many people wanting to buy a home or an investment property is that they set very high expectations.
They want to buy the most expensive house or apartment straight away. They want the most beautiful home or property in the most expensive suburb.
The problem with this scenario is that it may take a long time to save up a huge amount of money even just for a deposit for an expensive home.
To address this issue, Domenic Nesci, Co-Founder at Wealthi suggests a practical and pragmatic solution.
“Set a low target. Set your expectations low. Your property first purchase – whether it’s your own home or an investment property – need not be the most expensive,” Domenic says.
The idea is to get your foot in the door. Buy something that you can afford and then use the equity on that first property to build up your portfolio.
The best thing to do is to buy what you can given your situation, then buy what you want later on once you have enough equity on your property.
Take advantage of government grants and other resources
Given the different government grants and incentives available for home buyers and property investors, there’s bound to be one or two that will fit your situation.
Using the government’s first home buyer’s grant when he started, Dom was able to use the $10,000 to add to his own savings for a deposit.
“There are lots of government grants and incentives that people can use now. There’s money on the table and it will be wise to use those incentives to get started,” he said.
According to some research on housing ownership, it takes an average of 20 years for some people to save up for a house deposit. Using some of the existing government grants is an effective way to boost and increase your own savings to get into the property market.
Carla Nesci, Mortgage Broker at Wealthi recommends the following government grants to get first home buyers get into the property market:
· Help to Buy
· Regional First Home buyer support scheme
· Home Guarantee – first home buyers
· Family Home guarantee
Whether you want to buy your first home or your first investment property, the time to get in is now.
With all the government grants available for property buyers, there’s no better time to get your foot in the door of the property market.
If you would like to discuss your options, reach out to our Mortgage Brokers and Investment Specialists. Our team does the research, negotiations and helps you finance your property, making it easy for you to put your money to work:
