Escalating property prices are pushing young Australians out of the property market according to the Melbourne Institute’s latest Household, Income and Labour Dynamics in Australia (HILDA) report, but there are a number of alternative property pathways that can allow young buyers to get into the property market for less.
Consider smaller property types
If you want to live closer to major cities or urban hubs you’ll have to reconsider whether the big backyard and bedrooms to spare are really top priorities.
More and more first homebuyers are looking to step onto the property ladder by buying an apartment or unit as opposed to a house. Buying a smaller property offers a number of benefits to first homebuyers with the major one being that they are generally going to be cheaper to buy than a house. They also have a number of other benefits over a house. They include increased security, lower maintenance and some have fantastic amenities like gyms and pools too.
Move to outer suburbs or regional areas
The closer to major cities you get, the more property is going to cost. If you’re really set on getting a house it’s worth increasing your search field and looking to the outer suburbs and regional locations. You don’t need to live inner city to get a fantastic a lifestyle and all the amenities you need.
Commuting to work will obviously be a consideration, so you might need to look at those suburbs that have good transport links and calculate what your morning commute would be like before deciding on the best location.
Become a rentvestor
There are plenty of great property investments around the country and there’s nothing that says you need to live in them. More and more people are choosing to rent in the location of their choice and make smart investments elsewhere.
Rentvesting is great way to start building an investment property portfolio, which can be used to generate wealth for the future.
Make compromises to save
Saving for a home deposit is no easy feat and most people have to work hard and make a number of compromises to save as much as they can. Keep in mind that the more you save, the more borrowing capacity you’ll have and the more properties you’ll have to choose from. Ask where you can cut back, and have a chat to a financial advisor to create a home loan saving plan.
If you would like any advice about buying a property in Bacchus Marsh, get in touch with the team at Arbee Real Estate today.