Young Australians do find it harder than their parents to enter the property market.
To ease the pressure of the housing affordability crisis ironically a property investment partnership with family or friends can be an affordable market entry strategy that is mutually beneficial for the majority of Australians. Market entry can be achieved either via first home ownership with the accompanying grant or via an investment property.
Here’s a seven step strategy for first time property investors…
• Start saving early while you are still at school, finish your education and get a job
• Don’t rely on the first home owners grant and wait until you need a home. Become a first property investor instead. You may still be eligible to claim the first home owner grant later.
• Do a rough check your borrowing power online. The banks love employed singles living at their parents home.
• Find a good mortgage broker and a good bank. Borrowing power varies between banks.
• If you can invest alone, do it. If not, enter into a property investment partnership or find a guarantor.
• Search for a cash flow positive property that you can afford or a property with high rental returns and turn it cash flow positive as soon as possible. Some properties are cash flow positive from day one and we can show you how to find them. One method is with a specialized search engine, such as Real Estate Investar .
• Don’t wait to buy your first property once you are in a position to enter the market. And be careful with speculation. With a buy and hold strategy at the low end of the market, the best time to buy is now; that is: right now in 2013 (and it is almost always now, but you must be cautious at the peak of a bubble). If you have more money than you can get into the riskier higher end of the market. Higher gains and higher potential losses.