Think you need a massive deposit or a six-figure salary to invest in property? Think again. The truth is, property investing doesn’t have to be scary. With the right strategy and smart lending, you can start building your portfolio far earlier than you think, even while juggling a busy lifestyle and career.
1. Start With Your ‘Why’
Before you jump in, get clear on your long-term goals. Are you looking for steady rental income, capital growth or a mix of both? Making a rash decision without understanding what you are trying to achieve can end up costing you money and result in missed opportunities. Knowing your ‘why’ shapes everything from location choice to loan structure. The best investors make sure they have a clear plan, a clear goal and the right people around them to help them along the way.
2. You Don’t Always Need a 20% Deposit
While a 20% deposit helps you avoid Lender’s Mortgage Insurance (LMI), it’s not the only way in. Government schemes, guarantor loans, and even certain lender policies can let you start with as little as 5%. Make sure you do your research, or better yet, speak to a broker who can give you all the relevant options for your state and help you compare to understand the best way to get you your investment property.
3. Leverage What You Already Have
If you already own property, you might have usable equity. This means you could invest without saving a separate deposit. Experienced investors will always leverage their existing assets when looking at new property investing opportunities. Regular conversations with brokers and financial advisors are always helpful to understand your options. We can calculate exactly how much and structure it to protect your cash flow.
4.Choose the Right Loan Features For You
For investors, features like interest-only repayments, offset accounts and flexible redraw facilities can help maximise cash flow and tax efficiency. Property investing and building an investment portfolio requires a very different strategy compared to buying one forever home to live in. Make sure you speak to a broker; the right structure can save you thousands.
5. Think Beyond Your Backyard
Just because you live in Sydney or Melbourne, it doesn’t mean you have to buy there. Regional hubs and smaller cities can be a gold mine for investors and can offer better yields, lower entry prices and strong growth potential. While everyone is competing for properties in the outer city suburbs, make sure you are exploring rural areas in your state, and even consider interstate investment opportunities.
Quick Tip: Ask your broker about different grants and schemes in each state to find the best deal and best property for your unique investing goals.
Property investing isn’t reserved for the wealthy, and doesn’t have to be scary.
Good investors simply plan smart, act strategically, and play the long game. The sooner you get experienced support in your corner, start asking the right questions and making moves, the more time your investments have to grow.
You don’t have to do it alone. In fact, you would be silly not to leverage the expertise of others who have years of experience getting young people just like you into the property investing game with confidence.
Want to know if you’re ready to start your investing journey?
We’ll run the numbers, explore your borrowing power and help you build a tailored property investment strategy that works for your lifestyle. You don’t have to do it alone, and why would you when we are here to help!
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