To so many Aussies, the Property Ladder is something that drives us. Firstly, we want to get on it, then we want to climb it.
A recent survey by CoreLogic found that 86% of millennials believe it’s important to be on the property ladder, yet only around 66% of Aussies own a home.
Towards the end of the last decade, confidence in the property market waivered, supply increased as demand decreased. People were sitting, waiting to see what move to make next.
But now, the tides are turning. Confidence has returned, demand has increased, supply has stabilised, sales volumes have increased and, as a result, prices are on their way up.
Sydney by 8.2%, Melbourne by 8.1% and Brisbane by 2.2% according to CoreLogic.
In their January Property Insights Report, Macquarie Bank states,
“The ingredients are in place to support further strength in the residential property market throughout 2020. This should be enhanced by ongoing low interest rates and the potential for rates to go even lower.”
Now is the time to get onto the property ladder, or take a step up if you already own a home.
Here is a real-life example of an affordable investment using a property I visited last week on the Sunshine Coast of Queensland.
Cost of property $396,500 (brand new 2 bedroom townhouse 10 mins from the beach and well-positioned for employment opportunities)
To buy this property, you would need:
- 10% deposit – $39,650
- Qld Stamp duty – $12,302
- Transfer fee – $971
- Conveyancing cost – $1800 (estimate)
- Building inspection – $700 (estimate)
- Total – $55,423
With a strong rent yield of $400 – $420 per week, this property could be positively geared, depending on your circumstances.
So, for less than $60,000 you could get on to the property ladder – or climb the ladder if you’re already a homeowner.
Once you own one property and build some equity, you can then leverage it to buy another.
The key here is to get on the ladder and become a property owner and I’d love to help you do that.
If you want to discuss your plans and goals or the property mentioned, please get in touch.