Many people out there think that the dream of owning their own home is only ever going to be just that, a dream.
While it is true that the Adelaide property market is very active at the moment, there are things you can do that can get you into the homeowner club; it may just require a more creative way of looking at the situation.
- Look at nearby suburbs rather than the really ‘hot’ suburbs.
While you might have a list of suburbs that you want to buy in, sometimes you may be better off looking a little further afield to nearby areas that have a smaller pool of buyers.
A smaller pool of buyers can mean fewer parties to bid against to secure your dream home, and suburbs surrounding the 'hot' suburbs tend to follow the trend in value increases, as people get priced out of the 'hot' areas and have to look nearby, thereby increasing the demand for those ones. This can mean significant capital gains.
- Become a property investor and keep renting yourself.
Now, this may be a little different way of thinking, but there are real upsides to be had if you want to go down this path.
Firstly, you become a homeowner! You don’t have to live in the home to own it.
Second, there are significant tax benefits found through property investing that owner-occupiers do not have access to. For example, you can claim the interest on your mortgage payments, stamp duty on the purchase of the property, depreciation on the building and fixtures on the property, any maintenance and property management fees, and the list goes on.
These amounts can add up to large tax deductions, which can offset your personal income and reduce your tax amount. This equals more money in your pocket, and you own a home!
Third, once you have your first home, you can work to build equity in it over time and then leverage that equity to buy another and another, and before too long, the dream you thought was impossible has become something much more.
- Consider investing with a partner or family member.
This may be something that many would not be comfortable with, but real estate can be looked at like any other investment, namely risk and reward.
If you invest with other parties, as long as everyone is on the same page regarding what you're trying to do, this can be a very successful strategy. Going into it with multiple parties will mean a lower deposit amount per person and lower risk. It will also mean you need to share any profits; however, these are profits you would not otherwise have had if you couldn't get into the market, so some profits are better than none and can boost that deposit for your next property.
These are just a few ideas to help you achieve your dream of owning your own home. Of course, everyone is different and wants different things, but sometimes thinking a little outside the box can be just what you need to realise your dreams.