You don’t need to be a millionaire to invest in property.
When we think about those who have been successful in building a property investment portfolio there is usually one common factor, they are reasonably wealthy. Quite often, rather than aspiring to be like them, those that have more modest incomes believe that property investment is a rich persons game.
That isn’t necessarily the case, in fact the skills and experience managing a budget could make you a better property investor than your wealthier counterparts.
While being on a lower income might impact your borrowing capacity, it doesn’t mean that you can’t borrow anything. Nor does it mean you can’t save. Sure, you may not be able to buy a property in the suburb you’ve always dreamed of, but that doesn’t mean there isn’t an investment property out there for you.
If you’ve managed to acquire a deposit and can service a loan then there are most likely affordable options out there for you.
What does a ‘Regular Joe’ need to get into the property market?
1. Establish you long-term life and investment goals
What is it that you ultimately want to achieve? What will you need to set yourself up for retirement?
2. Set up your budget and work out the numbers
What money will you have left after paying for your living expenses?
3. Save your deposit
Start your savings to service your deposit.
4. Get educated
Find reputable advice from investment experts who understand investment strategies.
5. Find out your borrowing capacity
Speak to an experienced broker who will be able to advise you on how to maximise your borrowing capacity and structure your borrowings correctly.
6. Find the right property
Finding the right property for your investment strategy is the key to building a successful portfolio, so it is important that you seek advice from professionals to ensure you are investing in the right property for your strategy and not with your heart.
The key point to remember is that investing is not just for the wealthy, we all have to start somewhere. With the right discipline and advice, even those on an average wage can start building a property investment portfolio for their future.
Ventura iD and Multi Living Developments offer a free consultation service so you can see if developing is an option for you. Call (08) 9241 1600.