How many times have you heard that first home buyers can’t afford to buy property in Sydney?
The media love to throw that catch cry around on a regular basis and I’ve got some great news – of course it’s achievable!
The real issue is that people are just not prepared to “think outside the square”.
My daughter bought her first property in 2009 with around $20,000. Sounds incredible, doesn’t it?
I must admit that I was a little concerned that she would not get much of a property at the time. She was determined to make it happen and she did get some assistance to achieve her property goal.
It was at the time, in 2009, when the government had doubled the first home owners grant and stamp duty was exempt.
As a seasoned investor, I put on my investor hat and with my daughter in tow, went looking for an apartment that could be suitable (and affordable) for her to purchase. We looked at many properties and finally found one that suited her needs.
After a period of intense negotiation, we secured the 2 bed, 1 bath and 1 car space apartment in Lane Cove. The next challenge was financing the property.
Because my daughter’s deposit was so small, I sourced a bank product which used equity from one of my investment properties as security so that she didn’t have to pay loan mortgage insurance.
There was no cash outlay for me and a couple of years later, my daughter refinanced her mortgage and my security was released.
Last year, my daughter used equity from her Lane Cove property to purchase an investment property in Perth. She is now ready to purchase her second investment property.
If you think that you’ve missed the investment property boat then think again, there are always opportunities in any property market. They may not necessarily be where you think.
It’s important to have a mentor to assist you with the process and help you to achieve those investment goals.