Not everyone can afford to live in their ideal location so what can you do to get into the property market?
Widen your property search
If you’re trying to get a foot in the market consider moving out of your comfort zone into an area you may not have considered before. Areas further out from cities or towns can be good value for money and offer a great first step into the market.
Consider a smaller property
If you really want to live in a particular area you may have to start small and work your way up. Consider an apartment or a smaller house that you can add to over time.
Compromise on finishes
Properties that are dated or in need of renovation can be a cheaper option for home buyers. Look for a home that is structurally sound and then clean it to your standard. Add a lick of paint here and there to improve the look and renovate as your budget allows.
Consider an investment property rather than living in the home
Investment properties outside capital cities or in smaller towns or rural areas can have decent rental yields, making up for much lower capital gains.
The benefit of a positively geared property is that a tenant repays your loan while you build equity. This allows you to sell the property later and use the proceeds as a deposit on a property closer to where you want to live. Find out more about property investment.
Get an interest-only loan
You might consider an interest-only loan if you’re trying to get into the property market but you need to think carefully about whether it will be the best loan for you in the long run. Read about the risks and benefits of interest-only mortgages.