Australian house prices are among the highest in the world, making it increasingly difficult for aspiring first home buyers to get into the market. This robs many people of the benefits of home ownership. It can also impact your ability to build wealth because one of the most common ways to do this in Australia is to buy a family home and pay it off. The security of owning your own home is a big plus when you retire.
So if you’ve found yourself locked out of home ownership because of affordability or the inability to save for the substantial deposit required, there are a number of strategies you can employ to tap into the wealth-building benefits of property. Here are three to consider:
1 Rentvest
This enables you to live where you prefer – perhaps it’s with family to keep costs down or close to where you work – but still enjoy the benefits of property ownership through owning a residential investment in an area you can afford. For example, you may work in a major capital city but can only afford to buy a small regional property.
Evaluating location, price, and potential growth is crucial for choosing a suitable property for rentvesting. You need to make sure it will always be in demand by tenants who can afford the rent. Be careful to choose areas with diverse employment opportunities, growth potential and, in the case of outer suburbs or regional areas, with good transport routes to major hubs.
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