Why should young Aussies be looking at Queensland?
The property market can be tough for a young person looking to put their money to work for them through property investment. However, it's far from impossible. Here are just a couple of reasons why you should be turning your eyes to Queensland.
Low buy in
Thankfully time is just what you have in spades when you are a young investor.
One of the main hurdles that a young buyer in Australia will face is the issue of capital. When you are in your mid to late twenties, you will often not have the same kind of investment nest egg to play with as established homeowners. Whether it's equity, income or other investments, you'll generally find that younger investors have to keep their price tags low if they want to get onto the market.
That can be easier said than done, particularly with many markets across Australia increasing so rapidly and pushing some people with less capital out into the cold. However, that's where Queensland has the upper hand.
According to a regional performance report from CoreLogic RP Data, there are some places in our state that have buy-ins around the $200,000 as a median, many of them even less so. That creates a prime opportunity to snap up your first investment with a lower capital requirement, getting you well on your way to catching up with the older generations.
You've got time on your hands
One of the primary rules of property is that over a long period of time, it will generally increase in value. There has been a long history of that, and the trend doesn't seem to be making any sudden u-turns anytime soon. That's why patience is such a priority, but thankfully time is just what you have in spades when you are a young investor.
Over the short term, there can be ups and down like any investment, but there have been some regional towns that have close to 50 per cent median value improvements over the last five years according to CoreLogic. Last year, Suncorp found that Generation Y are some of the best savers in the country – but what kind of savings account could net you a 50 per cent return over such a short period of time?
Property investment isn't just a game for the older Aussies – with a low interest rate environment and such excellent opportunities present in a high growth market, it'd be daft not to explore your options in investing in Queensland. Make sure you get in touch with the property mentors at Think Money first though; we have a few tricks up our sleeves to help you along!