When you’re looking at potential investment properties, you’re also probably looking for property investment ideas. What real estate should you invest in, and how can you make those investments? Are there other ways to invest in real estate aside from buying and renting out properties?
As you might expect, the answers to those questions depend on your particular situation. There are ways to invest in Australian real estate that doesn’t require breaking the bank.
Easiest Of The Property Investment Ideas: Buy On A Loan
You can buy an investment property with a mortgage. As long as you have a decent credit score and 5-10% down, it’s possible to get a mortgage for an investment property. If you have equity in a home you already own, then you can borrow against your existing home to pay for the new one.
Over time, assuming you pick the area well, the rent from the investment property will pay the loan and provide you with positive cash flow. The plus side is that you do not need to outlay hundreds of thousands of dollars upfront. Even people that can afford to buy the property outright still do it on loan for cash flow and capital preservation reasons.
Buy Australian REITs
REITs (real estate investment trusts) are fantastic ways to enter the market without needing a significant amount of money. Traded like any other stock on the ASX, these organisations have a portfolio of real estate investments. Those investments tend to be commercial, and you don’t get to pick your properties, but if you’re looking for simple diversification, you can invest in REITs from your brokerage account. REITs usually have excellent dividends, so there is positive cash flow.
Rent Out Your House When You Move
If you’re looking at moving, don’t sell your home when you do! Instead, consider renting it out. You’ll be able to save on the closing costs of buying a new investment property (since you already bought your home for personal use before) and you’ll receive passive income. You can hire a property manager to handle any 2 am calls and any issues that arise when you’re away from your old home. It’s a great way to try having an investment property without putting out any new money specifically for an investment home.
Property Investing: Not Just For The Uber-Rich
One of the common myths about property investing is that it requires immense wealth. That’s nonsense. With these property investment ideas, you can gain access to one of the most reliable, simple ways that Australian families have been accumulating wealth for decades.
While past performance is no guarantee of future results, property prices in Australia tend to outpace inflation. Therefore, by putting even a little bit of money into real estate, you’re helping to accumulate wealth. It doesn’t have to be hundreds of thousands. Even $50,000 or less can be enough to get you an investment property that will have a positive cash flow.
When you’re ready to invest, talk to us! We’re prepared to help you find the right property for your needs.