Investing in property

Can I invest in property?

Contrary to what you may believe, purchasing an investment property is well within the reach of most first home buyers.

First homebuyers are faced with a myriad of misconceptions when thinking about entering the property market - the foremost being that an investment property is only an option for seasoned investors.

The truth is that property investment is as much of a reality for first time buyers as it is for veteran affluent investors.

Armed with the right information, backed by government incentives - such as stamp duty exceptions - and funded with appropriate finance, purchasing an investment property can be a great stepping stone for first home buyers to build personal wealth sooner rather than later.

What's more, the rental return for an investment property is factored in to a lender's calculations when evaluating a borrower's ability to service a loan. While in the early stages rentals may not meet mortgage repayments, government tax incentives may initially offer a rebate on any shortfall.

First time buyer tips for successful investing

• Thoroughly research markets to find areas offering good rental returns - inner city suburbs or locations close to universities are often a safe bet
• Find out which suburbs are tipped to boom or where the best prospects for growth are
• Look outside your own city - another market may offer better returns
• Look around for the right lender to ensure you find the most appropriate mortgage

You should also seek advice from a financial planner or your accountant