Want to live in your favourite suburb but can’t afford it? Want to get a foothold in the real estate market but don’t want to live in the areas you can actually afford?
A lot of people are eager to get into the real estate market but one of the issues they face is they can’t afford to buy property in the place they want to live.
But there is a way to have your cake and eat it too and that is by buying an investment property in an affordable location, whilst renting in a more desirable living location.
Rather than waiting years to save up for a property in a prestigious inner-city location, it could be worth looking into investing in middle- and out-ring suburbs that look set to rise. Alternatively, you might look to invest in an interstate location you hadn’t considered before.
Buying an investment property can help you build up equity and over time that you can use towards buying a home you plan to live in later on.
Renting has developed somewhat of a stigma that it is money wasted, which can be demonstrated by the old saying “rent money is dead money” but that certainly isn’t always the case.
There are plenty of people making solid investments while renting, and depending on your circumstances it might be a smarter move to rent and invest rather than investing your funds on the home you’re living in. Plus it offers people a lot more flexibility about where they can live, especially for those who are known to get restless being in the same place for too long.
If you’re looking to rent and buy an investment property, then ideally your rental income will be able cover most if not all of the cost of the rental you want to live in.
Do the sums and have a chat to a financial advisor to see what strategy will work best for you. You might find that your dream of property ownership is a lot closer than you think.