Seven in 10 Australians now believe that the rental crisis and high interest rates are locking Australians out of the property market. But according to buyer’s agent Lloyd Edge, there is still potential to “snap up a great deal” in the current marketplace and make your budget stretch further, whether you are an investor or owner-occupier.
He has provided five pieces of advice to help investors and first-time buyers alike make their mark on the market:
1. Look for the ‘tired’ properties
When searching for a home, consider looking for a property that needs a bit of TLC. According to Mr Edge, “a ‘tired’ or older-looking property in need of renovation will (most of the time) sell for less than a fully renovated or brand-new home.” Purchasing a property that requires renovations can be a great way to get onto the property ladder while staying within your budget. You can add value to the property by fixing it up yourself, which also means you can manufacture equity and increase the property’s value in the long run.
2. Consider rent-vesting
Rent-vesting involves purchasing an investment property and renting it out while living in a rental property yourself. This can be a smart way to build wealth and create a passive income stream. If you’re struggling to find affordable properties in your desired location, you can always open up your search to properties in regional areas or interstate. The buyer’s agent advises that “these properties will generally also have higher rental yields than capital cities, so you have a cash buffer in case anything unexpected comes up.”
3. Do it together
A less utilised way to purchase property in today’s market is to band together with family or friends.
“When you add up your combined savings and income, your purchasing power is far greater than if you tried to do it alone,” Mr