How can you get a foothold in the property market if prices keep on spiralling up the way they are?
Why are so many Australians missing out on fulfilling the Aussie dream of owning their own property and what can they do about it?
Unfortunately, in many parts of Australia the thought of buying your own property is out of reach of many young people entering the real estate market for the first time.
Even though these people have saved and given up many luxuries to put together a deposit and raise the nance to enter the property market, they are finding their dream home is out of reach as property prices keep spiralling skywards.
But buying your first property is only one approach to ownership and in this article we are going to share another alternative that will enable you to get a foothold in the market and could down the track lead to a greater chance of long-term wealth.
We would like to suggest that you change your focus and consider becoming a landlord instead.
This may mean you may have to continue living at home with relatives or renting for several years to come.
Why should you become a landlord?
11 years ago, a mate of mine – let’s call him Richard for privacy reasons – decided to take his deposit for a family home and using the nance he was able to arrange to purchase two small investment properties.
The two villas he purchased, were already rented to long-term tenants and gave him an immediate source of rental income to pay off his loan with the bank.
11 years later, both of those villas have been paid off and provide him with an income stream for life.
Richard did not stop there, once he had built up enough equity in these two investment properties he borrowed more money and purchased several more investment properties.
At current count, Richard has a portfolio of investment properties covering several states. Not once has he had put his hand in his own pocket to pay off the various loans he has acquired to build his portfolio of properties.
What about his dream family home?
To this day he is still renting a property to call home. But the return on all these investments has allowed him to rent properties out of the reach of any of his friends. Richard is living a millionaire’s lifestyle thanks to shrewd investment
decisions. He has calculated that in another 10 years he will be able to buy a home of his choice with cash and no mortgage thanks to being a landlord.
How can you apply this?
It is not possible in this article for us to give you a step-by-step plan that would enable you to replicate the success of my friend Richard. Everybody’s financial position is different and we would suggest you speak with your accountant or financial adviser to see if this strategy of becoming a landlord is a good t with your situation.
However, as a starting point we would suggest you also speak with our Business Development Manager, Vickie van Heuzen (0437 374 649) and she will be able to give you an idea of the types of properties people are renting in our area. Then our sales team may be able to show you some investment properties that suit your budget and fit your plans.
