How to invest in property if you can’t afford a house
Do you want to invest in property but can’t afford a house? Given that Australia’s property market has risen by 8.1% each year, or a total increase of 6.6% since the 1960s, it’s no wonder most Australians feel priced out of the property market. Australians love to invest in property, owning a home is the great Australian dream and investment properties are one of the many ways we secure our financial future. Starting your property portfolio might be easier than you think. Rather than focusing on a house, there are numerous options for investing in property which can be quicker and easier, allowing you to expand your investments sooner.
Typically cheaper than a house, units are a valid option for many people getting starting with property. With various developments, off the plan options or complexes near universities in capital cities, there are quite a few options for buying a unit over time. Plus depending on where you buy, the rental income can be quite good.
Buy out of your area
Where you live and where you buy don’t need to be in the same suburb. If investing in property is your goal, the suburb you live in might not be the soundest investment. Look outside your local area for areas with high rental yields and other desirables for a rental property.
Short term properties
With the share economy growing every day, all sorts of property options are available. People are constantly looking for unique accommodation and experiences which opens up numerous options. Land with glamping options, caravans, buses or storage converted to units are all popular on sites such as airbnb or riparide. With a block of land and some basic amenities, you can make $200 or so a night per accommodation. How much you make will vary depending on the area and what you offer. Check out this article on holiday homes for more information.
Buying a property off-the-plan means buying a property before it reaches the final stage of development. It does come with some risks, so financial and legal advice is crucial. However, there are numerous benefits in Australia for investing in property this way, including government incentives and tax depreciation.
Keep an open mind
To invest in property even if you can’t afford a house, you still need to do due diligence. Before you start any property investing, do thorough research and get proper financial and legal advice. Ensure you save as much as you can for a deposit and fees associated with buying property, but also keep your mind open. Investing in property simply because you’re fixated on the idea of bricks and mortar is not necessarily a good idea. Instead, you should be considering which investment vehicles allow you to build your capital as much as possible based on your individual circumstances.