Where To Buy Investment Property

Many of our readers already own a home of their own and can use it as equity to buy an investment property. If you are not so fortunate, here’s what you can do to get going.

Buying an investment property is a big financial commitment. It is tough enough for people who already own some property and have some equity in it, and can use this as a deposit to secure the next.

For those who don’t have any property and don’t have enough money saved, it can seem like a lost cause, like it’s all too hard. If this sounds like you, don’t despair, as there are ways to get there.

Be prepared to pay at least a 10 per cent deposit on a new property costing, let’s say $450,000. That’s $45,000 plus other costs of about $10,000, making it $55,000. How is it possible to realise this amount? Here are some tips on how to get started.

1. Set aside an amount to save each month

Don’t worry about the size of the amount; just start saving. Every month. Make a commitment and stick to it. Make saving a habit.

2. Add to your savings through small sacrifices

Look to build your nest egg by making regular small sacrifices. There are endless ways to spend less, provided you have a reason to do so. So give yourself a reason to skip a night out or the new phone you don’t need. Save the money instead.

3. Work a bit more

We know that you need time out to have a life. However, if you can boost your earnings by working longer hours here and there, why not?

4. Set priorities, and be a bit tough

We all know the stories of children who are so smart that they will live at home until they are 35 and save heaps along the way. This is great, as long as it’s not at your expense. Look for a compromise, as the income from an adult child living at home could bolster your savings effort.

5. Rent out a spare room

Why not? We all know of the housing shortage in Australia and the boom in overseas students. Have you got a spare room that you could rent out for $150 to $200 a week? It makes sense and it adds a lot to your savings potential.

6. Restructure your finances

There are many ways to do this. Debt consolidation, renegotiating and finding cheaper alternatives are some solutions and there are even more out there. You just have to look for them, find them, and nail them down.

7. Postpone the luxuries

Just say ‘Not now’ when tempting opportunities come up. Instead, put the money you would have spent into your savings account. Then you win twice:

a) You save the money you would have spent
b) You invest the savings and generate interest growth

       8. Pack a lunch for work

Simple as it sounds, even the most generic sandwich or Thai dish can cost you up to $10 a day. Why would you do this when you can make your own lunch simply through a bit of planning and effort?

9. Buy on special

Enough said. Don’t be too proud to hunt out the best bargains, and keep the savings for yourself.

10. Amaze yourself

Take all of the above, and then get really serious, and do more of each and just watch how fast your savings grow. Amaze and delight yourself with the results, and then do the unthinkable – give yourself a treat for what you’ve achieved!

Good luck and happy saving!

If you need a hand to guide you through this and where to buy your first investment property, contact us today.

McCarthy Group provides professional property investment advice on strategies like negative gearing. Find all the investment properties hot spots and discover why property investing is a stable option. For property investment Sydney, contact us now.