Young couple dreaming new house

A starter’s guide for the next generation of property investors

A combination of low interest rates and lower property rates is sparking renewed confidence in real estate and attracting a new generation of investors to enter the bricks and mortar market.

But for many people new to the property sector, it can be difficult to find a starting point and not get lost in the maze.

For those of us considering investing in property, whether it’s directly or via your self-managed super fund, it’s important to discuss your plans and develop a strategy with a qualified adviser.

As a starting point, here are some tips to consider first:


Define your goals. What do you want to achieve – a high level of rental income, long-term capital gains, or a combination of both? This will help you evaluate the potential of an existing or potential investment – is it on track and if not, it will show where you might need to make changes.

Geographically diversify – if you already own a house, choose another area to purchase your next investment property to provide a buffer in the event of a downturn in a particular suburb. Spreading your property investment across suburbs means you’re less exposed to the risks that may affect suburbs or towns differently.

Reassess your insurances – make sure you have income protection and life insurance to protect yourself in case, for some reason, you’re not able to make repayments.


Over-borrow – while interest rates are low at the moment, a mortgage is generally a long-term investment, and it’s likely you will experience a range of interest rates over time, so keep this in mind and don’t over-commit.

Invest for tax reasons alone – the lure of tax deductions can be strong, but deductions alone shouldn’t drive your decision.

You can gain a lot out of property investment but it’s wise to seek advice from people you trust. At Beyond Bank we have experienced financial planners, and mortgage advisers to help ensure you receive the appropriate support and advice needed when entering the market.

Feel free to leave any comments or questions below.

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