Sydney housing prices are rated as some of the highest in the world at the moment. and that makes housing affordability at the lowest rate for many decades.
So here are some tips from Property Nest to securing a property for as little money as possible.
1] Know your Budget and Go regional
The average investment property in Sydney will set you back about $650,000, but if you are prepared to look outside Sydney, such as Wollongong as an example you are able to buy a property for considerably cheaper. Try and stay within 1-2km of the town centre. this should be considered a stepping stone to get back in the CBD market.
2] Consult a good Finance Broker
Don’t limit your home loan options to only your usual bank, or you could be selling yourself short. A finance broker can sniff out the best loan deal for you, including finding a lender that will maximise the amount you can borrow
“There are still banks that will give you higher loan to value ratios”
3] Invest with Family and Friends
Potential investors who can’t afford a deposit on their own choose to buy the property with a family member or friend.
But that tactic does have some risks.
“The benefit is that, combined, you’ve got two income sources … to prove serviceability and … give you a bigger deposit. The downside is you are jointly liable for the loan.
4] Find a property the Bank Likes
As the property is an investment, rather than something you’re going to live in, it’s not important for you to be in love with it. Instead, look for a property the banks are in love with, and you’ll potentially minimise the deposit they require from you.
5] Picking the right property
The ultimate goal is for the property’s value to increase as quickly as possible, so McCabe says to focus on one-bedroom apartments in low-rise blocks with less than 20 apartments on the property.
6] Employ a good property manager
At PropertyNest, we are often asked to step in when things go wrong, and depending on the issue, it can take weeks or months to solve and put the property back into profitable position.
If you have any questions about your next investment or you have an investment property that you think could be managed better, why not call PropertyNest on 9764 0080 to discuss your property goals, we can set a strategy in place to help you achieve them.