The media would have us believe that property, particularly in Sydney is completely out of reach for most younger Australians. Affordability is an issue but it doesn’t mean that our children can’t get into the property market.
These days people are more interested in lifestyle and choosing where they want to live is usually high on their agenda. Living near the beach in Sydney, for example, is more affordable if you rent but unaffordable for most if you want to buy.
So then, let’s cast the property net further. Because our interest rates still sit at historically low levels, there are many Gen Ys investing in positive cash flow properties around the country and building their asset base in a sustainable way.
As far as Sydney property is concerned, all property markets come back to balance in time and there will be a correction in this market, there’s no doubt about that.
No one knows when the correction will happen and experienced investors don’t really care because they have long moved away from buying investment properties in Sydney.
So the important questions are – how do we help our kids get into property and where should they be buying?
Here are my 6 best tips for anyone wanting to buy Property. Parents can encourage their kids to do the following:
- 1. Get rid of all personal debt including credit cards.
- 2. Start saving as soon as you have an income. Those who become particularly good investors often start when they get their first job and are exceptionally good at saving their income.
- 3. Save a 20% deposit for your property (if this seems unattainable then have your savings locked away in an account so that you can’t spend it)
- 4. Set yourself a goal and a time frame to save e.g. I will save $1000 each month for the next 4 years. With interest this will be a great start towards the deposit.
- 5. Get advice from a Professional Investment Property Advisor before you buy.
- 6. Make sure you ask about finance, structure, costs and cash flow before you purchase a property.
There are plenty of affordable properties around Australia and if the goal is to start to build an asset base by purchasing investment properties, then the time to make a start is right now.