First Home Buyer Dream a tougher reality then it appears
Was buying property difficult before or it is now, it’s a question you should be asking yourself if you haven’t bought a property till now. “There are thousand excused for not to buy property right now but there is only reason to why to buy now is to create wealth by utilizing the time”. In 1960 median property price(Australia) was $7,000 and average annual income(Individual) was $2073, which was approximately 3.5 times that of the median price. In 1980 average income was $44,800 and median price was $12,580. Whereas, in 2010 was roughly 8 times. Now in 2018, median property price is $809,201 and average individual salary is $65,577, which is approximately 12 times to median property price. Buyers in 2010 also used to think to property prices are very high and today also think they are very high. Now question remains on you to decide which of them was a better time. If you would have bought a property in 2010 for $450,000 it would be well over a 1 million now. On top of it you would have paid some principle to your loan as well, which would have further enhanced your net home equity. And enabled to you buy at least 2 more investment properties for you to have a financial freedom through cash flow generated by them. Do you think it will not happen again? Do you think property price will remain the same after 10 years from now? Do you think with the rate at which your salary is increasing, you will be able to buy same property that you can afford now after 10 years? I am sure you would have answered these questions yourself. Now, arises another question how I can know if I can afford an investment property or not. This is a question to be answered by an experienced property investment consultant based on your serviceability and equity he will be able to guide you further. In 1960 percent of income for an average mortgage repayment for 15% whereas, in 2010 was 44% and now is well over 60%. The average mortgage repayment percentage keeps on increasing and will reach a point when a young individual will lose affordability. This is not new to us, if we reflect to what happened to New York, Beijing, Shanghai, Paris, London and Tokyo we can well imagine what will happen to Melbourne and Sydney with population increasing at all-time high. First Home Buyers needs to put their foot into property market as soon as possible and with whatever deposit they have in order jump in and avail benefits of equity from their investment properties. If you wait for the more time to gather deposit for your dream home, you will keep on missing the boat and property prices will keep on escalating. On other hand, an investment property will support you to create deposit for dream home and enabling you to benefit you from Tax Deductions and cash flow generation supporting to higher borrowing capacity. It is highly recommended for the first home buyer to seek professional advice to structure syour finances and get a fix goal for deposit before it gets too late for you to buy your desirable home.
Find out more about the best area to invest in properties in Australia, please contact Fortune 8 Property Investments on 0415 602 188 . Fortune 8 Property Investments consultants will educate you with more than 30 years of property investment knowledge for FREE and assist you with each step of your investment.
Newspaper - The Sunday Mail - 21/02/2018
