It’s important to note that your first home is rarely your forever home, so it doesn’t have to be perfect. With that in mind, it’s time to act strategically and make calculated decisions that will secure you a solid investment that will appreciate over time. Rather than searching for the property you want in the exact area you want, you may benefit from considering surrounding suburbs that are more affordable and on the rise.
Buying a below average property offers the opportunity for first home buyers to get onto the property ladder at a less than median price. It may not be what you’ve been dreaming of all your life but with a little TLC it can get close. In terms of smart investments, let’s take this opportunity to remember the age old saying that you’re better off buying the worst house on the best street than the best house on the worst street.
With the boom in renovation reality TV shows like The Block, House Rules and Selling Houses Australia we have all been inspired to make some changes. Whether you fancy yourself a small DIY project or want to engage some professionals for a real transformation, you can always create value by renovating a property. It may be cosmetic changes like repainting and gardening or structural alterations that open up a home or extend the living space. It’s important to note that depending on your plans you may need to liaise with the shire and will want to ensure that you don’t overcapitalise.
There’s no rule that says you have to live in your first property. Instead of buying a first home and moving straight in yourself, reinvesting is the new trend where you challenge conventions by purchasing an investment property and use the rental income to help service your mortgage. This allows you to rent in a more preferred urban area with friends or continue living at home so you can more comfortably build your investment portfolio.
For this exact reason reinvesting may be the new Australian Dream asmillennials close the gap between modern consumption-driven and brand-defined lifestyles with their desire to climb the property ladder. It is about having your latte and drinking it too.
The benefits of reinvesting include:
When you take that initial step as a first home buyer you are thrust into a world of property, finance, tax, law and even construction. Like seeing a doctor when you’re feeling ill, it’s important to engage a range of professionals to provide you with their expert opinion, advice and support along the way so you make the best decisions.
Feel free to pop into our office or give one of our sales representatives a call as they have a range of both personal and professional experience that will be sure to help along the way. For questions regarding finance and investment, our recommended broker Troy from Mr Finance Loans is always happy to meet to discuss your needs and answer any questions you might have.