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Learn the savviest alternative property investment strategies

Housing is the largest asset class in Australia, worth north of 6.5 trillion, CoreLogic RP Data shows. That's more than double the value of all superannuation funds and more than quadruple that of all Australian listed stocks.

What's more, an estimated 15.7 per cent of Australians own investment property. For those reasons, it's no surprise that property investment in Australia has become increasingly competitive and costly. To find your way into the market it's sometimes necessary to use alternative property investment strategies and think outside the box. Today, we'll discuss a few alternative investment property strategies that will come in handy.

Could an alternative investment property strategy be the best way to get into the market?

Rent your home, buy your Australian investment property

Just because it's the 'done thing' to buy the home you live in before you start investing in property that doesn't mean it's the best option for you. Rentvestment is a slightly unconventional investment strategy that's been gaining in popularity in Australia recently and it could be the perfect way to help hasten your climb up the property ladder.

Melton council area just out of Melbourne is a great place to look thanks to its median house value of under $300,000.

In a nutshell, it refers to renting your primary residence and buying investment properties elsewhere. In areas like Sydney and Melbourne where median home values sit near $1 million this could be particularly productive as it will allow you to rent and live near work, family and friends, where property prices may be out of reach.

You can then buy a property out of the city in fast growing but affordable areas – considering only a property's profit making potential as you search.

CoreLogic's data on last year's most affordable areas suggests that the Melton council area (just out of Melbourne) is a great place to look, thanks to its median house value of under $300,000.

Deagon in Queensland is even cheaper with a median unit value just under $123,644. By looking at more affordable suburbs you'll be able to get onto the market sooner and start building equity faster, without making too many sacrifices.

Alternative property investment: Buy out of the box

If you come up against challenges when buying investment property in Australia simply approach the problem from a different angle. That means thinking out of the box when you buy and looking at property you may not have considered before. It may be in a different location, or be a different type of property altogether.

Struggling to make property work for you? Try an unconventional property investment strategy.

CoreLogic's Best of the Best report suggests that the areas that grow in value aren't always the ones you expect. In fact one of the fastest growing areas in the entire country was Wyee Point: a tiny town almost an hours driving out of Newcastle. It's median property value grew by 31.7 per cent over last year to reach a very affordable $478,560.

Another suburb that's worth considering is Yayalup: a small area 219 km south of Perth. Over the five years ending September 2016 its median property value grew by a whopping 144.4 per cent. Capital gains aren't everything, but these suburbs prove that investment in unconventional locations can reap massive rewards.

Get creative with your finances

The latest data from the Australian Bureau of Statistics shows that property investors hold $12.8billion in fixed rate home loans. You can be sure that a great deal of those home loans weren't as carefully considered and personally tailored as they could have been (after all it can be fairly straight forward to pick a standardised investment loan off the shelf at your bank).

Property investment in Australia might be easier if you approach it creatively.

It may be quick and easy but it could also cost you serious money if your loan isn't perfectly suited to you. That's why it's always best to carry your creative approach to finding and buying property through to arranging and securing finance.

By going with a mortgage broker you'll have access to the products of dozens of lenders, as well as professional advice to help you customise your loan to your situation. These extra features may include the following useful additions and more:

Interest only repayments.
An offset account.
Custom repayment timing and frequency.
The ability to access equity.
Loan portability

If you're considering adopting an unconventional property investment strategy, then your first step should be to organise suitable finance. For a personalised experience and the advice of experienced experts go with Mortgageport.

Unlike some banks and other large lenders we take the time to understand you and tailor an investment home loan so that it's perfectly suited to your goals and your strategy – whatever they may be. Get in touch today to get the ball rolling with your property investment aspirations.

Australia’s five best first home buyer locations

We’d all love a palatial five bedroom palace in the heart of Sydney, with a spa on the roof, and luckily dreams are free. For most of us, Australian house prices mean that we have to look to more modest locations to get onto the market.

First home buyers in particular have to be creative and search for a property that’s affordable, yet still boasts the features that they want in a home. This may be easier than buying a mansion in Darling Harbour, but it’s no mean feat.

To help make it just a little easier and get you started the right way, here are five of Australia’s best first home buyer locations.

Parramatta's one of Australia's best first home buyer locations. Parramatta's one of Sydney's most promising first home buyer locations.

Parramatta, NSW

Just 23 kilometres out of NSW’s main centre you’ll find Parramatta, a fast-growing area that’s often referred to as Sydney’s second CBD. Sydney locals will be similar with Parra, but many may not know that it boasts world heritage attractions, food, drink and nightlife to rival any in Australia – and most importantly, a reasonably affordable property market.

Houses here may be out of reach of Sydney’s first home buyers, with a Residex reported median value of almost $1.2million. However, units are far more affordable, with a median at just over half that number – $613,000. This means half the units in the city will be under that value, which is where the opportunity for first home buyers lies.

We’d all love a palatial five bedroom palace in the heart of Sydney, with a spa on the roof. Luckily dreams are free.

Ashcroft, NSWIf you’re willing to compromise and live in a unit instead of a detached house, Parramatta offers a lifestyle and conveniences, comparable to central Sydney (at a better price).

Apartments aren’t for everyone, and unfortunately, if you’re looking exclusively for a detached home that can make buying your first home extremely difficult here in Sydney. Despite that there’s still pockets of affordability if you know where to look.

Ashcroft, 35 km out of the city centre, is one such place. Your Investment Property data shows that here the average home is valued at just $620,000, a number that may be just within the limits of most first home buyers.

Buying a detached house a short distance from Sydney has long been assumed to be near impossible for first home buyers. Ashcroft is proof that that’s not true.

Where are the best first home buyer locations near Brisbane?

Springwood, QLD

First home buyers in Australia are very familiar with the idea of sacrificing right now, for future opportunity. Buying your first home in Springwood is one example of when those sacrifices are likely to pay considerable dividends in future. This location may not impress buyers, now but that could be all about to change.

This little town is situated directly in between the Gold Coast and Brisbane, and is slated for considerable development down the track. In fact, the Courier Mail spoke to council members last year, revealing that their was significant interest from developers, as well as comprehensive plans to turn Springwood into a high-tech smart city of the future.

Springwood has big things in its future, so first home buyers should get in while property values are still low.

It’s clear that Springwood has big things in its future, so first home buyers should get in while property values are still low. Residex shows that the median unit value is only $267,000, while houses go for just over $500,000. Prices have been increasing by between 4 and 8 per cent over the last few years – so you better get in quick.

Rocklea, QLD

Rocklea is just south of Brisbane central, offering a safe and closeknit community, and low prices that make is one of the best places to buy your first home in Queensland. In fact, it recently topped CoreLogic RP Data’s list of the most affordable suburbs within 10km of the Brisbane, with a median house value of just $390,000.

At that incredibly low average price buyers may be able to get more than they expect here. In Rocklea, three or even four bedroom homes, with generous sections may even be affordable, if first home buyers act soon.

Alternatively those on a smaller budget could be able to get in sooner than they may have believed possible, by buying here.

Regardless of how affordable Canberra's suburbs may be - you won't get far without a first home buyer loan.

Scullin, ACT

Scullin is one of the most tightly held suburbs in Canberra, boasting large section sizes, plenty green space, a safe family-orientated community and proximity to the city. The best part is that property here is incredibly affordable, at price points ideal for first home buyers.

CoreLogic puts the average house value at under $500,000, but it’s possible to find property much cheaper than that. The average home loan value here is under $200,000, which speaks to the affordability of the area.

No matter how affordable the property you’re buying may be, it’s all for nothing if you don’t secure a first home loan. The team here at Mortgageport are here to help you with that, offering access to hundreds of loan products and expert advice – from the day you apply for your loan right through to the day you settle.

Why an SMSF loan is great for your investment portfolio

There are many ways you can invest the funds in your self-managed super fund (SMSF). One possible strategy is to get a loan to bolster your SMSF, then use that money to invest in property. When you go this route, the hope is that your property will appreciate in value over time, and you'll make more than enough capital gains to repay the loan you've taken out.

Why is an SMSF loan great for your investment portfolio? How can you pursue this strategy optimally?

Is this the best strategy for you? It's often hard to decide. A lot of the investment literature out there comes off sounding too highfalutin and confusing for ordinary people who are just getting into investing. If you're like most people, you're just looking for a straight answer. Why is an SMSF loan great for your investment portfolio? How can you pursue this strategy optimally?

The benefits of buying SMSF properties

The beauty of buying an SMSF property is you're getting into a very stable market. People are always going to need housing, so your property is certain to have value. Unlike with certain other stocks and bonds, you don't have to worry about the value of a house going bust if you have a bad year.

Having said that, there are some stringent rules in place about investing in property with an SMSF, according to the Australian Securities and Investments Commission. For example, you can't be living on a property that you invest in, nor can anyone involved with your fund. You can't acquire the property from anyone involved, either. SMSF property investment can be a great opportunity, but only if you play by the rules.

Crafting a brilliant investment strategy

How will you go about crafting a foolproof strategy for boosting your investment portfolio? Your Investment Property Mag recommends trying to predict the next big thing in real estate, thus staying one step ahead of the game.

Can investing in property help bolster your SMSF portfolio?

In other words, don't buy a house in a city that's already wildly popular – its value may have already peaked. Instead, look at the suburbs of that city, where prices may go up next. If you can use strategies like this to predict future values, you can add significantly to the value of your SMSF.

Handling your investments the right way

There are many advantages of managing an SMSF investment yourself. Most importantly, you have total control over your own decisions. You choose when to buy and sell your properties, and you can do it at the best time to maximise your capital gains.

Is getting an SMSF loan a good idea? It is if you've got the financial savvy to invest wisely and make the most money possible from the transaction. At Mortgageport, we can help make that happen. Talk with our team today to get expert advice and a tailored SMSF property loan that will work for you.

Should you consider building a new home in 2017?

With median dwelling values running high, and a clear need for new buildings, putting your dream home on a new plot of land is a great option. Why buy an existing house if it's too expensive? Building can be more cost-effective, not to mention giving you the freedom to tailor the place to your own specifications.

Before you start building a home, you'll need to have the right financing arrangement in place.

Of course, before you start building, you'll need to have the right financing arrangement in place. Building might be cheaper than buying a home outright, but it's certainly not free. You'll need to take a careful look at the market and evaluate your options before making any decisions.

A growing market for home construction

If you're mulling over the possibility of building a home in Australia in 2017, you should know that you're not alone. According to the Australian Bureau of Statistics, there were a total of 17,639 new dwelling units approved in February alone, which represented a 0.8 per cent increase over the previous month. Building is on the rise.

With this steady growth comes a more competitive market for construction. New building companies are sprouting up, offering their services with all sorts of projects. This complicates the equation for families. Who will you build your home with? What price will you pay? Answering these questions has become a lot more complicated.

Getting a feel for the building process

Are you wondering when it's a good time to build a new home in Australia? Here's one sound answer: Not until you fully understand the process involved. As YourHome correctly noted, building a home tends to be a long and complicated ordeal.

Do you have a reliable builder you can work with?

It begins with choosing a builder. You need someone not just good with their hands, but also skilled with project management – setting and following a budget, coordinating smaller sub-projects and working with employees and contractors. You also need to be savvy about drawing up legal agreements and enforcing them fairly, as well as making sound financial decisions.

Preparing for the costs that lie ahead

It's only natural to have concerns about how Australians can build new homes. After all, it's difficult and expensive. Research from Allianz found that the average cost of a building project has more than quadrupled within one generation – it was $65,000 in 1988, and $282,000 now.

One way to make the process a little easier, however, is to enlist financial help. At Mortgageport, we offer land and construction loans that are easily customised to meet your needs. Talk to us today about how we can help get your next building project off the ground.

Buying property with an SMSF loan: What do you need to know?

Have you ever considered building wealth for your retirement with a self-managed super fund (SMSF)? It's a complex system that won't work for everyone, but if you have the required capital and the time to put into it, it could pay off.

You must consider whether it's the absolute best decision for your financial goals before committing to any purchase.

Buying a property with an SMSF loan from Mortgageport can make the investment easier for you. Of course, you must consider whether it's the absolute best decision for your financial goals before committing to any purchase. There are plenty of rules you need to abide by to avoid tax penalties on your SMSF property as well – knowing and sticking to these will help to keep your investment financially viable.

What are the rules surrounding an SMSF property?

For a start, any SMSF property must meet the 'sole purpose test', which means it only provides retirement benefits to members of your SMSF board. Other SMSF regulations about how to use your SMSF property are as follows:

The property must not be purchased from a family member of anyone on the SMSF board.
The property must not be lived in by a member of the board.
The property cannot be rented out by a member of the board, or any related parties (including family).

Everyone on your SMSF board must know the rules and abide by them (if there is more than one person on the board). Holding regular meetings can ensure that the investment is being used in a legal way, and annual audits ensure you are complying with tax rules.

SMSFs are excellent ways to have more control over your retirement investments, but you must have an appropriate amount of capital to make it worthwhile. NAB recommends at least $350,000 as a minimum – this can be spread over a number of people, however.

A deposit for an SMSF home can be split over all of the people on your board.

How can Mortgageport help you to buy an SMSF property?

Without the minimum recommended capital to start your SMSF investment and make it financially viable, an SMSF loan could be the right option. If an SMSF is not the right investment decision for you in the first place, an SMSF loan will not be suitable.

If you are starting your SMSF investment scheme earlier, you will have more time to make capital gains, thus you may not need as much upfront capital. That's where an SMSF loan from Mortgageport can help – for more information, make sure you get in touch today.

Learn the savviest alternative property investment strategies

Australia’s five best first home buyer locations

Parramatta, NSW

Springwood, QLD

Rocklea, QLD

Scullin, ACT

Why an SMSF loan is great for your investment portfolio

Should you consider building a new home in 2017?

Buying property with an SMSF loan: What do you need to know?

Contact Us

1300 786 908

Locations

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Parramatta, NSW

Springwood, QLD

Rocklea, QLD

Scullin, ACT

Contact Us 1300 786 908

Locations

Newsletter

Enquire

MyChoice newsletter

Contact Us

1300 786 908