Just because you don’t earn a six-figure salary, it doesn’t mean you can’t break into the investment property market.
It is true that in some of the major markets across Australia we have seen significant growth in the past four years.
However, there are most certainly so distinct growth markets in the sub-$400,000, which are poised for a sound 10-year growth cycle.
But before you jump online, find a great deal and hop on the next flight interstate, there are a few things you need to consider.
It’s no secret that the lower your income, the harder it is to attain finance. This is where many of our first-time investor clients come unstuck.
The reality is, you will almost certainly need a mortgage to buy your first (or subsequent property), and your borrowing capacity will greatly depend on your income. Therefore, the amount you earn will restrict the mortgage you can get and the property you can buy.
But don’t despair. Even though APRA has continued to put pressure on the banking sector and lenders have become tighter with their lending policies, you may still get your loan application approved by showing them you can both afford to pay off your mortgage and your capacity to earn more into the future.
Importantly, there needs to be a big emphasis on keeping your personal credit record airtight. You can most certainly manage this component effectively with some of the below tips:
Ultimately, it comes down to sacrifice and commitment. These skills will leave you in good stead to build your property portfolio well into the future.