5 creative ways to get an investment property
Last year, figures* released by the Australian Bureau of Statistics (ABS) showed property investment is still in many people’s reach; figures show 62 per cent of people who negatively gear one property have taxable incomes under $80,000.
Breaking the figures down by professions, these include over 396,000 school teachers and over 266,000 office and practice managers. Looking further down the list, nearly 322,000 midwifery and nursing professionals, over 233,000 personal carers and assistants, and over 155,000 truck drivers all own investment properties.
So how does someone with a taxable income of under $80,000 get into property investment? Once people have looked at the finances of what they can realistically afford, they are thinking creatively to get onto the market – here are five ways you may not have thought of:
Consider different locations
There’s always the next ‘hotspot’ and ‘not to be missed’ area – but there are very often areas under the radar which have low vacancy rates and are still great places to live. Consider looking at suburbs neighbouring desirable ones or even look further afield to way outside the city.
People are often happy to live further out of the city than you think if they’re after a different lifestyle, and with the new rail and tram networks, commute times have actually got shorter.
Consider different property types
Many people consider buying an apartment or unit because they think they don’t have to worry about maintenance issues. However, those are only the external ones related to the building or common ground; there still maybe internal issues to deal with.
While new builds are sometimes considered better than older properties for similar reasons, things still go wrong in a new property!
An older property might actually be cheaper than a new-build and have fewer ongoing costs than a new apartment. Anyway, with the right property manager, you don’t have to worry about maintenance issues, as they take the stress out of these management issues by sorting them out for you!
Invest with family and/or friends
Joint ownership of investment properties is becoming increasingly popular, but make sure you’re aware of the risks as well as the benefits.
Some relationships have turned sour if one party’s financial situation changes.
Rent out your home and live elsewhere
Will renting out your home and you living elsewhere enable you to save some money and put towards an investment property in the future? Check with your accountant as you may be allowed to rent out your main place of residence for several years before it’s classed as an investment property. Do the maths, as this could be just the time you need to make some savings or perhaps put towards another mortgage.
Rent and buy an investment property
If you love the area you live in, but can’t afford to buy in it, consider buying a less expensive property in a more affordable area, and rent that one out!
While we can’t advise on which strategy is best for you as each investor has different motives, different goals and financial situations, we can give you information on what has worked for other investors so you can talk to an expert who will make suggestions according to your situation.
Plus, if you’ve seen a property you like, we’re always happy to give honest advice about its rentability and what type of tenants it will attract. We can also make suggestions of how to get the best out of your property investment once you’ve bought it!
Over the 40 plus years we’ve been in business, we’ve helped hundreds of people realise their financial dreams through property investment.
Come on in to our Cardiff office for a chat or give us a call on 02 4954 8833.
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