For some time now the property market has been ultra competitive. There’s no doubt that it’s extremely challenging for people, even with two incomes, to save up enough money for a deposit, especially in our capital cities.
We’ve got you covered with some benefits to buying in an area that’s more affordable and could offer good rental returns. This means, you could continue to rent in the city you love and get your foot in the property market door in another area.
Let’s check out the benefits;
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- It’s more manageable.
Having the option of buying outside of capital cities means that you could be more open to more opportunities. How? If you can’t afford a home loan of $800,000 to $1M or more then you could look at areas that offer cheaper real estate outside of the capital cities. Plus, you could get the added benefit of getting an income from your property, which could cover your mortgage repayments or the rent you’re paying in the city.
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- You can use the equity to buy elsewhere.
With record low interest rates, you can pay off an affordable mortgage faster. By paying back more than the minimum repayment – and remember that the rent you’re receiving from your investment can go towards your mortgage – you can not only pay off your debt faster, you can shave thousands of dollars off your mortgage.
An added benefit is that it helps you build equity in your property if you do have the goal to expand your investment portfolio or buy where you’re living in the future. The reality is that the regional areas on the outskirts of capital cities don’t generally experience the price growth of the city, but if you hold onto your property and think longer term, you will see price rises. Think of it like a bad haircut – if you’re patient, it’ll grow. And that growth will contribute to your equity.
Property investment 101 is to know your marketplace and it’s important to do your research before buying anywhere. If you’re considering your options, speak to us today and be sure that your decision is the right one.
