Home Buyer Guide

Keeping Afloat Against Property Plunge

With Australia amidst a property bubble, only time will tell if it will burst or slowly deflate. However, you must not take any chances and take the advice of real estate experts on how to deal with impending property plunges. Four experts were asked what they would do if they had $70,000 in savings and they want to have their own property. Their answers ended up different from one another but insightful.

First, the investor must enter the property market as property can grow the investor’s portfolio. Investor must look for a property that will benefit the investor’s money the most. Thus, the size of the property may have to be sacrificed.

Second, the investor must buy into communities that have an average capital growth of ten percent over the last decade. This will also help the investor increase his wealth. But with a relatively meager budget, properties that are a few years old must still be considered.

Third, the investor must look for properties within the $200,000 to $300,000 range and prioritise established properties that come with land. You can also think of renovation jobs or ideas that would increase the value of the home or drive in tenants.

Fourth, it is better to wait for a while and be patient for you might not have enough finances to get a decent property with the loan that you can get. With a 70 percent mortgage, the investor is given $350,000 and your choices are limited with a relatively small value.

A mortgage broker can help you decide your best options, also do your research to determine what will be best for you.