“We all have to stop waiting for the government to solve the housing affordability difficulty and instead people have to look at how they can create their own solutions” says Brett Marks, CEO of the Noah Group.
People waiting for the right time to buy property might be waiting a long time, as according to Brett Marks, “Nothing miraculous is about to fix the housing affordability problem.”
Although there has been much talk from the government, no rock-solid solutions have been laid down, and unfortunately too many people are waiting on the government to solve the problem.
“For some reason, over the past 100 years, people have believed that property in their decade was too expensive to afford. This is not looking at the problem in reality as property prices tend to increase substantially over 10 year cycles. Therefore it makes sense to get into the property market as soon as possible which can be done by talking with a financial planner and getting them to look for ways to organise your finances according to your circumstances.”
“If you are just getting started,” Brett Marks says “the Noah Group can show you how it is cheaper per week to rent the house you live in and purchase an investment property, because of the tax breaks you get for investment property.”
Buying with the view to renting a property out is the best approach to entering the property market suggests the Noah Group’s financial planners. There is no better time to get into the property market and Brett Marks tries to help people realise this.
Another option, if you and your partner have over $120,000 in super between you, is to create your own self managed super fund (SMSF) and use that to purchase an investment property. This is a big part of the Noah Group services.
“The important thing to remember is that this is your investment – your money box for the future, therefore whether you like the location or the design or the colour scheme is not important” Brett Marks says. “What is important is to buy a property with the possibility of high capital gain and strong rental return.”
Another Noah Group recommendation is to rent where it suits you to live from a work and location viewpoint. This also makes it simple to relocate if your work location changes, or to move if you need a bigger place for a growing family.