Getting into the world of real estate investment obviously costs money, and with the ever increasing demand for houses and properties, you can expect real estate in Australia to become more expensive especially in prime locations. But this does not mean that you cannot go into the real estate industry. There are actually several more affordable options that you may want to look into so you can get started with investing. Here are some of the options to take into account:
Invest in rural areas
Homes are more affordable in rural areas compared to those in cities. This is a good way to enter the real estate industry without shelling out a lot of money for deposit.
1. Family equity loan
In this option, parents can serve as guarantors on a loan and even offer their home as security, while the principal borrower’s name will be on the loan as well as in the title.
2. Buy with other people
This option involves more than one buyer of the property. It can be with family or friends and the loan will be split among them. Bear in mind that banks implement different rules when it comes to lending and joint loans so make sure to study the terms carefully. You can also ask a lawyer to explain things that you’re not sure of. Also, buying property with other people can be risky. It’s essentially a business partnership and challenges may arise later on if one of you wants to sell the property, for instance.
Enter the market sooner with this option that involves renting where you want to live while buying affordable property and putting it up for rent. Since the property is cheaper, you may not need to save a lot for the deposit. The major advantage of this option is that it enables people to live where they want and at the same time, use the investment property to grow their savings.
4. Consider properties in regional or rural areas
In general, homes are more affordable in rural areas compared to those in cities. Of course, it’s a matter of preference but as far as affordability is concerned, this is a good way to enter the real estate industry without shelling out a lot of money for deposit. Just make sure that the property is suitable for your needs and lifestyle.
These are some of the affordable options that you can consider if you want to enter the market and you don’t have enough funds for the investment. Do your research and choose which option works well for you.
Got other tips on investing in real estate investment? Share your real estate advice in the comments section.