At age 40, today’s ‘youth’ will be purchasing their first properties later than any generation before them.
2013’s average first homebuyer is already an alarming 31 years old, a sizeable departure from the 1980s when most first time buyers were in their mid-20s.
Fuelling this trend is the fact that Australian property prices are increasingly out of reach based on the salaries that most young people are on. For most Aussies in their early 20s, purchasing a property in a major Australian cities doesn’t seem like a realistic prospect when you’re at the start of your career and earning less than $50,000 a year.
Amid these higher entry prices, motivated youngsters are still managing to build healthy property portfolios at a very young age.
What are young property tycoons doing that everyone else isn’t?
- Getting into the market earlier
- Buying in areas with strong rental demand
- Thinking out side the square
- Finding a mortgage broker they can trust
- Building a team of advisers (accountant, solicitor, mortgage broker, builder and quantity surveyor)
- Learning from people who have been there before
- Stretching beyond their comfort zones to make their goals a reality
- Buying for value
- Holding high performing assets
- Reinvesting their profits
- Placing a fixed percentage of their income into investing each week
- Taking calculated risks
Whats interesting is that most successful investors and property tycoons do not start as high income earners and most struggle to save a deposit. Most do not come from rich parents.
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