Getting a foot onto the property ladder is certainly no easy feat, and it’s easy to see why many young people simply give up their dreams of home ownership. But the fact is, the rewards of property investment ultimately outweigh the effort. To help you get started in your property investment journey, here is our advice for young property investors.Save, save, save:
Saving a deposit is probably the biggest hurdle that most first home buyers or young property investors face. Unfortunately, in order to get into the property market, you’ll need money. Here are some ideas to help you save faster:
- Live at home for as long as you can and avoid paying rent to someone else.
- Cut back on non-essential spending – even the smallest amounts quickly add up.
- Consider using Government first home buyer schemes if these are available.
Keep your options open:
Once you’ve started saving towards a deposit, the next step is finding a property you can afford. It’s a good idea to look outside the traditional four-bedroom, two-bathroom family home, as it’s highly likely your first home won’t be your forever home.
Instead, think of your first home as a stepping stone – a chance to build up some equity that you can use later on to buy your dream home. You may even need to consider taking in a flatmate or an overseas student to help with the bills initially.
Consider your options:
If you’re on a tight budget you can’t afford to be picky. You may need to buy further away from work with a much longer commute, or in an area that isn’t as trendy or as desirable just to get a foot onto the property ladder.
You might even want to consider rent-vesting as an option – renting a property near where you work while owning a property in a more affordable area that you rent out to someone else. There are plenty of opportunities for astute buyers with a little vision.
Keep your finger on the pulse:
It’s important you keep up to date with what’s happening in the property market. Read property market reports and property listings, visit open homes or attend auctions, talk to a real estate agent or a mortgage adviser to get a real understanding of property pricing, what’s available, and what you can expect to buy for your budget.
If you’d like advice on how you can get onto the property ladder – either buying your first home or investing in a rental property – get in touch with our team of mortgage experts.