Shake Up Your Savings:

How to score big in the Aussie property game.

If you already have your first property, then congratulations! You are past the hardest bit of being a property investor – getting the first property! Let’s be real – diving into property investment, especially nabbing that first property, can feel like scaling Mount Everest. 🏔️ But hey, you’ve conquered that peak, and now the vistas are limitless!

So, let’s talk about strategy.💡 Sure, getting that initial property can seem like a financial labyrinth, but fear not, we’ve got a few tricks up our sleeves to help you navigate through. First off, cash is king, right? 💰 Well, if you don’t have a stash hidden under your mattress or in your piggy bank, don’t sweat it. Some banks are more generous than you might think, offering loans up to a whopping 95%! That means you’re just a 5% deposit away from realising your property dreams. 🏠💭 If you are younger and just starting out, another option may be to ask your parents to raise a small loan against their own property for the amount you require. You can then make the repayments on that loan for them in addition to the loan repayments on the loan for your new property. But wait, there’s more! 🌟 If you’re just starting out, you could even explore options like tapping into the equity of your parents’ property. It’s a win-win situation – they help you, you help them, and before you know it, you’re on the path to property prosperity!

Now, before you start picturing yourself lounging by the pool of your new investment property, remember, banks like to see a bit of skin in the game. Genuine savings speak volumes, and hey, who doesn’t love a little evidence of financial responsibility? 📈 Oh, and let’s not forget about the First Home Owners Grant! 🎁 It’s like the cherry on top of your property sundae, but remember, there are a few rules to play by. Live in it for a bit, let it appreciate, and then watch your investment portfolio flourish! And here’s a little nugget of wisdom to chew on – don’t dismiss the idea of renting while you let your investments work their magic. Sometimes, patience pays off big time! 🕰️✨

Remember, each property you snag should be a strategic move in your chess game of wealth building. Emotional attachments might feel warm and fuzzy, but in the world of property investment, it’s all about playing your cards right. 🃏

👓A Financial Perspective🪙Renting vs. buying your own home
When it comes to making financial decisions, it’s crucial to consider the long-term implications. Many believe that buying their own home is the ultimate goal, but let’s delve into the numbers and see if that’s always the case.

Renting Your Home and Investing: A Smart Move 💡
Financially speaking, renting your own home while investing in properties can often yield better results than purchasing your primary residence. Here’s a scenario to illustrate why:
Imagine two individuals owning identical houses worth $400,000 each, with 90% mortgages totaling $360,000. They decide to swap houses and rent from each other.

What changes in their situation?
They pay each other $400 per week in rent, effectively cancelling out the rental expense. They still own properties worth $400,000, have the same mortgages, rates, and bills. However, the property they own is now considered an ‘investment property,’ enabling them to claim all expenses on tax—mortgage interest, rates, insurance, maintenance, everything! This results in significant tax returns annually. 📈 Thus, financially, renting and buying properties for others to live in often outweighs buying your own home. It’s essential to recognise that purchasing a home is primarily a lifestyle decision, not just a financial one.

Advantages of Renting and Investing:
Focus on Investment Criteria: Renting allows you to focus solely on investment criteria, potentially leading to higher returns as you can invest where the property market is booming. Entry into the Market Sooner:

Renting where you live and buying investment properties can help you enter the market sooner, especially if you’re on a tight budget. You’re not limited to buying in your current location, giving you more options within your budget.

Capital Gains Tax Consideration:

While good property investors typically don’t sell, it’s worth noting that selling your principal place of residence exempts you from capital gains tax—a factor to discuss with your accountant if selling is on your mind.

In conclusion, while homeownership is not ‘wrong,’ it’s essential to weigh the financial implications and consider alternative strategies like renting and investing.

🏠 Investing in Property. Something is always better than nothing!
I’d like to share some insights that may reshape your perspective on property investment: Anything is better than nothing! 💰 In the dynamic world of real estate, even the most inexperienced investors can find success if they hold onto their properties long enough. It’s crucial to understand that acquiring a property that meets most of your criteria, even if not all, is still a step in the right direction. After all, you have to be in the game to stand a chance of winning! 🎯

Why Owning Property Matters:
A Chance to Make Money: If you don’t own a property, you miss out on the opportunity to profit from real estate. It’s as simple as that. Investing for the Long Term: Successful property investors don’t just buy properties; they buy time. By setting up the right structures and holding onto their properties indefinitely, they create a pathway to long-term financial security. Regardless of short-term market fluctuations, they remain poised for success in the long run.

Remember: Persistence Pays Off!

While the property market can be unpredictable, those who persevere often come out ahead. Even if a property meets only a portion of your criteria today, it can still serve as a valuable asset in your investment portfolio. As the saying goes, “Rome wasn’t built in a day.” Similarly, building wealth through real estate requires patience, strategy, and a long-term mindset. So, whether you’re considering your first investment or expanding your portfolio, remember that taking action no matter how small is always better than standing on the sidelines.

I hope this perspective encourages you to seize opportunities and embark on your property investment journey with confidence.
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~Daimien Patterson
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