There are some pretty scary figures circulating about the costs of buying profitable property in Melbourne. The average weekly income of a Victorian is approximately $1400. However, it is estimated that in the current housing market, weekly earnings of $1800 or more are required in order to save enough for a metropolitan home deposit and continue to pay off the mortgage in a reasonable timeframe. This means that the majority of Melbourn simply cannot afford to make that first step on the property ladder. While home prices have leapt 10% in the last year, incomes have crawled up only 2%. This means that larger proportions of incomes are being put away into the nest egg.
All this information is relevant to singles looking to buy by themselves either as an owner-occupied home or as a first investment property. Of course, when the income is doubled, then it is only half the strain on each individual financially. Many couples who have been together for several years will be in a far better position to buy compared to their single peers. The good news is that desperate times call for creative thinking. More and more friend couples are getting into the property market, taking advantage of the lower costs while still having plenty of flexibility with their arrangement. The key behind this is to have an exit strategy planned out in advance. Just like romantic relationships, friendships can go sour as well, and life can simply throw you a curveball. Purchasing with someone who has a stable or progressing career and is responsible with their spending and saving is now a very real option. Just be sure to speak with a lawyer about drawing up a contract between you so everyone is on the same page. An agent can also be a valuable asset in these circumstances. They should have dealt with partnerships like this before and be able to adequately guide you through so that everyone stays happy. They may even be able to show you some of their properties that may be a good match for your investing goals, and also locate a good tenant if that is the case.
If this all sounds a little bit too risky then perhaps it is not the venture for you. Another avenue to consider pursuing involves cosying up to your parents like in the old days. More and more twenty somethings are leaning heavily on their parents for support in this competitive property market. The average age of flying the coop is rising, and the number of young people who return home after a year or two of living with housemates is very high. Eliminating rent from your list of expenses could easily save another ten thousand per year. Working full time with very few living expenses can dramatically improve your chances of securing a piece of real estate in the next few years. Others are looking to their parents for an outright loan, rather than being slave to the ongoing interest rate rises of the big banks. Parents appreciate that housing prices show no sign of slowing, and that it is only going to get harder from then on. It is certainly an advantageous position to be in, but not one that everyone can rely on. Some investment businesses say that their young market come to them with help from their parents approximately a quarter of the time.
For more information and guidance for buying smart property in Melbourne, have a chat to the knowledgeable and highly experienced team.
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