When is a good time to buy an investment property?

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Considering purchasing an investment property?

Whether you’re a young investor, in your forties with a family, or you’re planning for retirement, investing in property can be a safe yet lucrative way to build your wealth for the future.

When it comes to investing in property, the saying ‘the sooner the better’ usually applies so you give yourself the maximum time for your investment to mature. But even if retirement is just around the corner, there are still options that can see you living comfortably.

 

The ‘typical’ property investor

When we think of property investors, we often think of someone who has dozens of homes in their portfolio and millions of dollars at their disposal. But in Australia, the typical person investing in property is a married man of 42 years old with a net annual income of $79,404.

This level of income repaints the traditional picture of property investors. It means that at any age, relationship status or gender, property investment is more achievable than you might think.

 

The early investor

If you’re in your teens or twenties and considering purchasing your first property, you’re ahead of the curve. The good thing about investing now is your property has a high likelihood of increasing in value over your lifetime. The property market cycle suggests that a house price will double every seven to 10 years, which means you could be looking forward to significant revenue gains as you get older.

You also are likely to have less responsibilities such as a mortgage or children, so you can afford to put more of your savings towards building your wealth.

Young investors often opt for ‘rentvesting’, where you invest in your first home in an up and coming growth suburb with the intention to let it to tenants, while remaining in your own rental accommodation in a more expensive / established location. In time, your investment property will help fund a purchase of your own residential home in your chosen suburb.

 

Investing with a family

When you get into your thirties and forties, you are likely to be more settled in life – perhaps you own a home of your own, you’ve got a good career and a family. In this case, you might feel more ready than ever to start planning your first property investment.

With more at stake than a younger investor, many people in their thirties and forties are understandably concerned with making sure they buy a property in the right place at the right time. But the good thing is, you likely have a stronger income than ever before, which means you have plenty of options for your investment.

The key to investing at this age is strategy. By taking the time to look at your current finances, prioritising your future goals, and creating a comprehensive plan, you can build your wealth for the future to ensure you create a lasting legacy for yourself and your family.

 

Investing later in life

If you are approaching retirement, you might feel that it’s too late to feel the benefits of property investment. That doesn’t need to be the case. If you’re doing your sums about how much you can expect to live on during retirement and things aren’t adding up, it might be time to look to property.

Investing later in life usually means you’re looking for more disposable income. That means you would likely be suited to a positively geared investment, where the costs of investment (for example interest on your home loan, management fees and maintenance costs) are less than the rental income you are receiving each month. In this case, you’ll need to plan your finances ahead of time to ensure your investment is going to pay off.

Getting a loan as you approach your fifties and sixties can also be more challenging. But, the good news is by this point in life you are likely to have other assets to draw from. For example, you can release equity from your current home to fund your investment property.

 

There’s no time like now

Wherever you are in life, exploring your options with an expert is the best place to start so you can fully understand your current position and the options ahead of you. With Reventon, you can speak to one of our property investment experts at no cost, and with no obligations to take up any of our services. Get a property investment plan tailored to you so you can decide whether now is a good time to buy.

Book your free session now


 

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