As property prices continue to trend upwards, Australians are finding different ways to enter the property market. Here are several tips on how you can join them.
1. Location
While city living offers plenty of benefits, property prices continue to soar. If you’re prepared to compromise, look at outer suburbs and other growth areas. Buying away from popular suburbs can help you build equity over time and grow your overall investment with a smaller investment.
2. Incentives
If you’re a first home buyer, each state and territory in Australia offers various incentives that can help you stake a claim in the property market. On top of Federal Government initiatives, don’t forget to check with your particular state and territory for other incentives that might apply to you.
3. Off-plan buying
Buying off-plan offers a compromise to building a home from scratch. You can still customise your new home to an extent, but many of the hoops that you would otherwise have to jump through are the builder’s responsibility.
You’ll still need to do your due diligence to minimise risk, but property that is purchased off-plan qualifies for government incentives and you can even make a purchase with as little as a 5 percent or 10 percent deposit in some cases.
4. Buy to invest
Many first-time buyers are entering the market by purchasing a property that they can rent out. Any rental income can help cover mortgage repayments and the property can also increase in value over time, meaning buyers have more equity when it comes to purchasing their dream home.
