It’s becoming an increasingly common complaint that more and more people are being priced out of the property market. This is especially true of young people whose parents would have had no trouble buying their first property at the same age. While the market certainly can be tough for first-timers to crack, the key factor is to get in as soon as possible – any way you can.
Once you have a foothold in the market, buying your next property or upgrading to a better one is much easier. The trick is simply getting in.
There are a number of creative ways to make this a reality. For those who have a stable income but little capital, it’s often a matter of getting mum and dad to agree to act as guarantors.
Others opt to pool resources with friends or family members to become co-owners. While this might seem like a left-field option, it’s one that’s becoming increasingly popular.
Property investor or home owner?
You might be thinking: but I can’t even afford a home of my own, let alone an investment property! That’s perfectly understandable, but counterintuitive as it may seem there are reasons to believe that in the current market investing can be an even more affordable option that buying your own home.
The reason why is that it’s easier to be more flexible in your expectations of an investment property than of a home. There are two common traps that would-be home buyers fall into:
- Some become accustomed to a lifestyle that’s sustainable for them only as renters, not as home owners. They want to own their own property, but don’t want to move to an area where they would be able to afford to buy.
- Others are happy not to live in the trendier suburbs, but struggle to picture themselves purchasing anything less than their dream home – perhaps one that’s too big for present needs, but is intended as a long-term home for a growing or future family.
If you’re looking for an investment rather than a home, both of these problems are easily overcome. Buy in an area you can afford while continuing to rent where you want to live. Or buy something small to begin with, on the understanding that you will be able to upgrade your investment in time, and continue to rent the larger family home in the meantime.
Either way, once you’re in the market you’ll find yourself with far more options in the long run – both for your investments and for your home.
For more information and expert advice on property investment, management and renting, contact K.G. Hurst today.