Buying a house in Australia isn’t easy, and it may be set to get harder. Budding property owners only accounted for a little over 30% of property purchases in the first quarter of this year. The National Australia Bank has confirmed this to be a depressing 2-year low.
Don’t give up, however. If you’re a first-time buyer, there are a couple of tricks you can have up your sleeve when the time comes to move on your chosen property.
1) Make the Most of Partners, Friends and Family
According to the Australian Bureau of Statistics, the average property price in Australia currently rests at $656,800. As a result, it should come as no surprise that 79% of first-time buyers list the deposit as the biggest challenge they face.
An easy way to navigate this roadblock is by buying with others. Club together with friends, family and your partner and you’ll find paying the deposit a much less difficult task. You’ll also boost your buying power, meaning you may be able to get a bigger place.
2) Look at Other Locations and Buying Strategies
There are heaps of strategies you can use to make your life easier when buying a home. One such method is rentvestment. Consider buying your first property and instead of living in it yourself, renting it out to someone else. This will garner you a significant sum of cash each month to pay off your mortgage with, as well as a little bit on top to go towards other purchases.
During the first quarter of this year, nearly 35% of first-time buyers bought their properties as rentvestments. It’s growing increasingly common for good reason, too.
When rentvesting, you’ll be able to take an objective approach and look at properties purely for their profit potential, as opposed to your personal preferences. The profits you make off this property can be used after a few years to buy another property, either as your own residence or a new addition to your investment portfolio.
3) Seek Professional Advice
There’s no doubt that getting on the property ladder is hard, but seeking professional advice early on can make the process much simpler.
Financial advisors, real estate agents and mortgage brokers can all help you to ensure you’re making the right decisions. Get in touch with a professional at least 6 months before you’re ready to buy and you’ll leave yourself plenty of time to make the right buying choices.
Action these 3 tips and you’ll be well on your way to securing your first home, whether it’s one you’ll live in or your first addition to your property investment portfolio.