MYTH has it that property investment is only possible for those on high incomes.<\/p>\n
The community stereotype of the investor is such that most of us can\u2019t imagine that such people were ever on an average wage.<\/p>\n
\u201cBut like many other stereotypes these are simplifications that get in the way of real understanding of the process at work,\u201d Bellarine Property managing director Christian Bartley said.<\/p>\n
\u201cStatistics in fact show that most Australian property investors are ordinary wage earners \u2013 family people preparing for their retirement.<\/p>\n
\u201cThe typical couple might start by buying their own home or apartment for say $530,000. To do this they have probably saved about $75,000 deposit including stamp duty and legal fees.<\/p>\n
\u201cLet\u2019s say their combined income is $105,000 \u2013 the main breadwinner bringing in $68,000 and a
\npart time working spouse $37,000.\u201d<\/p>\n
Mr Bartley said that depending on income and expenditure it may take the average couple 10 to 15 years to pay off their home.<\/p>\n
\u201cThe family home probably needs to be about 50 per cent paid off before the owners can start buying investment property,\u201d Mr Bartley said.<\/p>\n
\u201cMost people should be in a position to start talking to their accountant and shopping around for
\nfinance after about 10 years.<\/p>\n
\u201cBy then, their home will have doubled in value, increasing their equity and making the remainder of the loan a proportionately smaller amount of the total value of the house.\u201d<\/p>\n
According to Mr Bartley, depending on the couple\u2019s income and expenses they could buy another investment property every two to five years.<\/p>\n
\u201cRents go up but repayments can stay the same,\u201d Mr Bartley said.<\/p>\n
\u201cMost people are ready to buy again when rent on their first investment increases sufficiently to cover repayments.\u201d<\/p>\n
Mr Bartley said that many families are in a position to buy at a faster rate.<\/p>\n
\u201cThe scenario I have suggested will vary from family to family depending on a host of factors and I have deliberately erred on the conservative side.<\/p>\n
\u201cMost people starting to buy investment property between the ages of 35 and 40 could end up with a portfolio of between five and 10 properties by the time they reach 55.\u201d<\/p>\n
For further information, contact Mr Bartley on 0410 695 325, email christian@bellarineproperty. com.au or visit bellarineproperty.com.au.<\/p>\n","protected":false},"excerpt":{"rendered":"
MYTH has it that property investment is only possible for those on high incomes. The community stereotype of the investor is such that most of us can\u2019t imagine that such people were ever on an average wage. \u201cBut like many other stereotypes these are simplifications that get in the way of real understanding of the […]<\/p>\n