While buying a quality asset in a capital city allows you to see a property that is increasing in value over the long term, saving a six-digit deposit is not achievable for everyone.
Many changes have swept through the real estate market in recent years, if not decades, and, more recently, things have become increasingly volatile with the COVID-19 threat.
"Only two out of 10 Australians currently aged 65 and over are actually financially independent"
This has resulted in a concoction of setbacks – real and perceived – that can make it increasingly difficult for people to catch up on their first break in the game of property.
According to a recent report on the affordability of ANZ CoreLogic housing, it may take Sydney borrowers up to 11.4 years to save a 20% property deposit. It is slightly less in Melbourne with 10.1 years and in Brisbane with 7.9 years (assuming 15% of a borrower's gross annual income needs to be saved).
So how can you take your first steps in property and keep moving towards a future that offers greater wealth prospects – without waiting almost a decade to do it?
AllianceCorp CEO Jason Paetow says building a range of real estate investments is an ideal way to diversify your portfolio and reduce your risk.
"As long as you buy in different markets – so that you don't just double on a single investment – buying directly and indirectly can be a great way to maximize profits and mitigate the impact of any fall in the market, "explains Paetow
"This is the same reason why we encourage clients to own properties in different states and to own different types of properties, both positive cash flows and negative cash flows. You don't rely on a single asset to generate returns. "
Investors don't necessarily have to adopt the traditional investment method by saving for a large deposit in order to see the benefits, adds Income2Wealth director Paul Wilson.
"When an investor tries to be creative by achieving a return on investment, if his capacity is small, he [might] takes more risks and if he is not qualified, it can negatively affect what it is. trying to achieve for themselves, "says Wilson.
"But there are ways by which investors can participate in real estate investment without having to assume all the risks themselves, this is where these other investment methods exist. "
With a range of alternative entry points to spot their benefits and potential risks, we have pitched the best real estate experts in the country, who focus on each investment strategy and highlight how some of the most unregulated playgrounds, such as those of real estate joint ventures, have evolved to better protect the investor.
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