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How does a 23 year old get into the property market?

If you believed all of the media headlines, young people across the whole of Australia will never own property.

According to media reports, housing affordability is the worst it’s ever been, so us “youngsters” should just give up and stay living at mum and dad’s – forever.

Sorry, dad.

Australia isn’t one market

Australia property market

Even though I live in Melbourne, which has been highlighted as a city that’s unaffordable for first-home buyers, I know that there are plenty of options out for me here.

You see, Melbourne isn’t one property market.

It has more affordable suburbs as well as the increasingly popular option of buying an established unit as your first property.

Plus, as I’ve written about before, more first-home buyers are actually first-home investors and are opting to stay renting while investing elsewhere.

It seems that some commentators, annoyed that they can’t afford to buy a beachfront unit in Bondi or a trendy terrace in Fitzroy, are proclaiming that “the market” is impossible for them.

I don’t know about your family, but the home that my parents now live in isn’t the first one they ever bought, and it certainly didn’t have all the bells and whistles and a brand new car in the driveway. No, my parents, and before them my grandparents, had to work hard to get a deposit to buy a home that they could afford.

Yes, they had to work their way up to it – just like generations of people before them. And guess what? Nothing has changed, disciplined young people are getting into the property market every day.

Borderless investing

property marketAnother option for young people is to recognise that while Sydney, and parts of Melbourne, have high house prices, there are plenty of other locations that do not.

Greater Brisbane’s median dwelling price is less than $500,000 with units more affordable still, according to CoreLogic.

Adelaide’s median dwelling price is $440,000 and Hobart’s is sitting at $396,000 (but rising).

The argument about these other capital cities from would-be property buyers is that “Well, I don’t want to shift to Brisbane or Hobart. Get real!”

Of course, you don’t have to move to them. And I’m definitely not recommending that you invest in them. No, that takes careful consideration and the right advice, my point merely is that there are options.

The plethora of information online, as well as experts like buyers’ agents, means that borderless investing is a viable strategy.

But you must know what you’re doing.

You don’t just want to pick a property that seems “OK” online and then simply buy it sight unseen without any assistance whatsoever.

A smarter way would be to engage the expertise of local agents, or better still a professional buyers’ advocate, or agent as they are known, who can advise you and help you buy a property that suits your budget as well as your property goals.

Over the past 15 years in particular, property investing has become more professional, which means there are more experts out there who can help turn your property dreams into a reality.

And don’t forget the “Bank of Mum & Dad”

refinance your property portfolio

Yes, that’s right, the “Bank of Mum & Dad”. This is becoming one of the most popular banks in Australia, in fact, some forecasters are saying that this may soon become our 5th biggest bank!

What I mean is that there are now many baby boomers and young Gen X’s sitting on considerable equity that can assist their children with a guarantee that effectively gifts them the deposit and allows entry sooner to the market. This is a great way to get young people an entry into the property market.

So, what am I saying?

The point I’m trying to make is that instead of throwing up your hands up in defeat, you should think outside the square. There are options for you and this is where I can help!

And at the end of the day, have the mindset that believes that you are a young investor who can, not one who thinks they can’t.

Discuss your specific needs & formulate the right strategy for you. Get in touch to organise your complementary 60min session today!

The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.

Lachlan Mirams

Lachlan Mirams

Finance Strategist at Intuitive Finance
Lachlan joined Intuitive Finance in September 2013, initially in an administrative role before moving to Client Services in October 2014. Lachlan moved into a new Relationship Manager role in January 2017 where he oversees our Client Services Managers along with dealing in some strategic analysis himself. He has recently completed his Diploma of Finance and Mortgage Broking Management and will commence broking in January 2018. Outside work, Lachlan is a very talented footballer, currently playing in the Victorian Amateur Football Association with St Bedes/Mentone. He is a very avid sports fan with his most passionate teams being the North Melbourne Kangaroos in the AFL and the Cleveland Cavaliers in the NBA. In his spare time, he enjoys catching up with his mates, playing football & basketball and watching any sport that is on TV
Lachlan Mirams

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