How first home buyers can enter the runaway Sydney property market
With the median property price in Sydney now pushing the $800k mark and rising quickly, just how does a First Home Buyer get into the runaway Sydney market? The short answer is with great difficulty unless you’ve got wealthy parents. For most average couples it’s impossible….but there is a way if you’re prepared to think outside the square.
Many couples face this problem and are discouraged and walk away but a few have realised that it is possible by using a multi-step process using positive cashflow investment property as stepping stones to their dream of owning their own home in Sydney in a suburb of their choosing.
- Rent in the area that you want to live but can’t afford to buy.
- Buy an investment property in an area that you can afford.
- Make sure its positive cash flow because these fund themselves and have money left over each week… you make a profit from day one!
- As soon as you have some equity and/or savings buy another one.
- Build a positively geared property portfolio.
- When you have enough equity, you can sell all or part of your portfolio to give you a suitable deposit for your dream home.
- Alternatively, you may have come to realise the benefits of creating wealth through positively geared property and continue building your wealth and retirement income, still living in your favourite area.
Dual Occupancy Investment Property two and a bit hours from Sydney in a low vacancy area with high rental demand. Purchase price around $472k, rent $620 pw. $140 pw cashflow positive after meeting all expenses. 10 minutes from a patrolled surf beach. These properties pay for themselves. Deposit required is around $50k.
So summing up:
You can have your cake and eat it too! Live in the area you’ve always wanted to and at the same time enjoy the benefits of being a property owner in an area you can afford. There is no reason to feel condemned to rent for the rest of your life.
Call me (Peter) on 0407 671 559 and I’ll explain it in more detail.