It’s no surprise that most people do not consider property investment until they are in the middle ages or beyond. This is because dreams these days come with a high price tag. A car, rent, kids, education are all fighting your meagre salary at the end of every month. So, how can you be able to invest in property later in life?
You need to spend time figuring out what you want from the property you invest in. Moreover, the kind of lifestyle you want to live both medium and long-term. Figure out if you’re going to generate income in the short-term or have capital growth over a period.
You should understand that people who invest later on in life have fewer years to support cash flow. You, therefore, need to strategise and avoid wasting time, money or opportunities.
Consider a buyer agent
You can choose to secure a buyer agent since they specialise in evaluation and negotiation of properties. A buyer agent will take things out of your plate if you are unsure of where to invest or simply have no time to look.
You will need to make a market shift. Do not invest in property just because you are familiar with the place. Think beyond the areas you are familiar with to create diversity.
Yield or capital growth?
You may be torn between rental returns or capital growth since they are both lucrative. Understand that investing in properties that have high rental yields are usually in places that have a sustainable supply of itinerant students or workers such as in universities or hospitals. The entry price is typically lower since the number of such houses is high which ordinarily means that there is limited potential for rapid capital growth. The perk is that you are assured of tenants meaning that you will have strong rents.
If you plan to invest in property and achieve capital growth, you should renovate it as you wait for the value of that property to rise. If you plan on investing in property later in life, then look no further you can contact us at Mortgage Australia to look at the options we have.