5 ways to invest in Aussie property on a lower budget

Are you looking to invest in property, but not quite sure if it’s in your budget?

Investing, as much as it can be a daunting concept, is actually incredibly common for us as Australians.

Whether it’s investing in ourselves, or things like shares or cash, there’s certainly a culture surrounding creating financial freedom.

What hasn’t caught up with this trend is the prevalence of property investment. Traditionally only thought of as something only for the top end of town (according to the ATO, 20% of taxpayers own an investment property), you may be hesitant towards the idea of property investment if you don’t have millions in the bank.

Well, I’m not going to lie – you’ve probably been missing out, because property investment is just about as accessible as ever, and at the end of the day it’s all about understanding the long term benefits associated with property, its equity potential in the long run, and its stability as a financial asset.

You might have heard that property investment is great, but just a bit too expensive – or you might just be unsure how to make it work for your circumstances. Either way, it can often be enough to scare away any plans of action.

So, let’s stop those ideas in their tracks. Instead of ruling out the idea of property investment because of your finances, let’s look at 5 ways to take the jump into the market on a lower budget.

1. Take that FIRST STEP

   It’s just about as clichéd as it gets, but everyone has to start somewhere. You may be turned off from the idea of investing in property because it’s not your dream home, nor is it somewhere you’d choose to live. Well, before you pull the plug, there’s actually a lot more to it.

   Creating a strategic plan takes into consideration your unique financial and life circumstances, ensuring that your investment works for you in the long term. Whether it’s looking in a particular region, at a specific type of dwelling, or at a particular size, we’re all about taking a step back and ensuring that your investment journey works for you.

   And at the end of the day – your first purchase is well and truly likely to not be your last!

2. Rentvest

   Rentvesting is the combination of renting and investing – and it’s one of our favourite ways to step into property investment on that road to financial security and freedom – especially in 2024

   It’s incredibly common for people to get caught in a blackhole of renting, without even having the idea that they may be able to afford a property. The amazing thing about rentvesting is that you can live where you love, whilst purchasing where you can afford. By doing so, you can use your rental income to pay your own rent, whilst having the long term equity gain associated with property market growth.

3. Don’t purchase close to home

   Just because your brother’s sister’s aunt’s dog has invested in a place just down the road from their house, doesn’t mean you have to do the same thing.

   One thing that we all love is familiarity. But in the property investment world, it can be extremely restrictive – because it doesn’t necessarily ensure that you’re doing what’s in your best strategic interest.

   Our Research and Acquisitions teams work hand in hand to search nationwide for property opportunities that align to your individual goals and circumstances. That perfect opportunity may be regional, or in a CBD… It might be a duplex, an apartment, or a home. The beauty of having a team like ours by your side is that the possibilities and opportunities grow exponentially.

4. Look at Investing with SUPER

   Another really great way to invest in property is to look into utilising your superannuation.

   At the end of the day, there’s no money out of your pocket given the purchase is made through your super by way of a Self Managed Super Fund (SMSF).

   With superfund-based property investment, the property’s incoming rent and your super contributions can work together to service any loan you make to purchase the property.

   Not to mention, having an investment property as a part of your super portfolio is a great way to ensure there is financial diversity among your assets.

   Want to learn more about investing with super? Check out our recent in-depth blog.

5. Use your money wisely

   Something we see quite frequently with inexperienced property investors building new homes…

   They tend to OVERCAPITALISE on the investment, including all the bells and whistles without making sure it aligns to their strategic plan.

   This is where the good old fashioned idea of playing smarter, not harder comes into its own.

   There’s a fine line between including great value in your property, and just going over the top. First and foremost, you should be prioritising ensuring that your property is a great place to live for your tenants – functional and liveable.

   Making the right choices on simple features like high ceilings, air conditioning and fans, storage, and granite benchtops can be hugely attractive for prospective tenants, helping to create a high rental yield right from when construction is complete.

At the end of the day, investing in Aussie property in 2024 can be something that aligns directly to your goals and budget. At Propell, there’s no cookie cutter approach, just tailored strategy that works for YOU

Ready to take the jump into property investment with a team that cares about YOUR goals?

Give us a call on 1300 776 735, or send through an enquiry HERE, we’d love to chat!