As seasoned mortgage brokers who have seen a lot of home loans in the Rockingham, Baldivis and Kwinana areas, we have noticed some interesting trends. One of those we find the most exciting is the trend for people in their 20’s to start out as small investors.
Why You Should Buy Investment Property
Most successful investors started fairly early and nearly all of them would say that it is never too early to start investing in real estate. Housing prices usually at least double over a 10-year period, producing a nice capital gain when sold even if the property has negative gearing.
In 1973, the median home price in Perth was $17,500. In 1983, it was $49,000, nearly triple of 10 years previous. In 1993, the median home price was $112,750, more than double 1983’s number. In 2003, the median home price was $205,000. While this wasn’t quite double, it represented a tidy profit. In 2013, the median home price in Perth rose to a record $535,000. This is slightly over two and a half times as much as 10 years ago.
The numbers don’t lie: real estate is a great long-term investment. Here are some tips on how to get started as early as possible.
Think Long-Term
When we are young, it is often difficult to think past tomorrow but the years fly past quickly. Think “investment plan” and “financial independence” and remember the numbers we provided above.
Find Mentors
Talk to people who have already done what you are trying to do. Listen, learn and apply that knowledge.
Start Saving Now
Start saving at least a bit of money in a savings account every week. Lenders love this and it can not only make it easier for you to obtain a loan; it can also result in lesser interest charged on any loan you do obtain.
Squeaky-Clean Credit
Always pay every bill on time. If you do run aground temporarily, make arrangements with your creditors so that they don’t put a negative mark on your credit report.
Find the Right Mortgage Broker
A great mortgage broker can make a huge difference in your investment profits. Call 0400 204 408 to learn more.
