Buy a House and Earn Income! Have You Heard About the New Trend Growing Rapidly Among Gen Y? Find Out Why One in Every Four First Home-buyers in an Australian State are Purchasing Their First Homes as Investment Properties!
This is a term given to the new 21st century breed of young first home-buyers who are taking advantage of Australia’s property market to invest and build their portfolios.
The term describes the trend of young home buyers who are landlords of properties they own, whilst still living in rental properties.
It is currently one of the fastest growing trends among generation Y buyers, with statistics from West Australian broker group Mortgage Choice suggesting that one in four first home-buyers in WA are purchasing their first homes as investment properties. The trend is not limited to WA, with young buyers making similar investment strategies all around the nation!
It is not hard to see why – This reinvesting strategy allows investors to live in their dream location whilst at the same time getting their foot in door of the property market, and earning money on their investments. Some industry experts have even been quoted as saying ‘there’s never been a better time do it with rents and home prices so down’.
All the tax benefits of owning an investment property are available to these savvy young investors, and their rental income is often more than sufficient enough to cover their mortgage. Living with parents to reduce rent can even save these investors more money!
If you’re beginning to think that rentvesting may be for you – here are some tips that are relevant to today’s property market.
Top Tips for Potential Investors in the Current Market –
1. Consider older homes on large blocks close to the CBD. Houses that don’t have the best presentation are often overlooked real estate market however these types of houses can often have the best long term capital growth.
2. Look for suburbs that are currently oversupplied with properties but are growing or expected to grow.
3. Obtain pre-financing – this will allow you to act with certainty and take advantage of desperate sellers who will be more than likely to drop the price of their property for the promise of a rapid sale.
4. Emphasis should be placed on negotiation on price, not conditions of sale. The conditions of the current market have created the perfect opportunity to buy a home below the asking price! Buyers are a lot better off negotiating on price rather than adding conditions to sale – like the request for items to be repaired. This will annoy sellers and they will be less likely to lower their price.
If this has got you thinking about the potential benefits that rentvesting could bring you, then contact us at Nieuvision today. We believe that your investment and financial dreams should be a reality. With the help of our friendly and experienced staff we will be able to provide you with the information and guidance required to reach your personal investment and financial goals!