If you can’t beat ‘em, join ‘em!
That’s right, this overused, old-fashioned phrase still represents the same mentality today as it did however many years ago.
And as discovered only in recent times, this mindset can prove advantageous when applied to home buying and property investment.
Put simply, young people should opt to move out into their investment property. For some who may find this overwhelming, or difficult to understand, the purpose is to reap the benefits that other savvy investors are.
These benefits include the initial first home buyers stamp duty reduction, among many other long-term, flexible home ownership benefits.
Let’s take a look at how you can set yourself up, providing yourself with opportunities to transition from occupier to investor.
Use your head, push emotions aside
Although it may only be somewhat ideal for your current living situation, buying a property to live in using an investor’s mentality is probably the smartest thing you can do.
You may not necessarily need or want to be close to schools or public transport, but think of how those attributes will increase the property’s value should you decide to rent it out in the near or distant future.
Rent yours out, then rent another in your ideal location
After 12 months of living in that property, rent and live in another one in your ideal location. This frees it up for you get tenants in there and start making money! And because you’ve lived in it for the past year, you’ve gotten to reap the benefits of the first home buyers stamp duty reduction.
Utilise the prospects of a property manager
Get a professional in property management to find you suitable and reputable tenants. Just in case the right tenants aren’t readily available, ensure you keep a sizeable savings account or ‘buffer’ handy to cover the mortgage – generally enough to cover a month worth of rent.
Find a flatmate
This also may take some time, often at least a few weeks depending on where you live. A flatmate can share your rent, potentially saving you hundreds of dollars per week, which can be put back into your investment property.
Really consider the affordability
Most people don’t realise that the great Aussie dream isn’t really as far out of reach as they think. Our generation seem to prefer to invest in their immediate lifestyles with an ‘I want it now’ mindset.
The majority of people wanting to buy homes likely can. All that’s required is some proper revaluation, discipline and sacrifice, and you’ll well and truly be on your way.