first time property buyers

"We want to buy or invest in a property... but don't know where to start."

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You are looking to buy your first property but don't know whether it should be a home or an investment property. Where you can afford to buy is not really where you want to live - it’s further away from work, friends and your lifestyle. Where you want to live is quite expensive to buy, but it’s much cheaper to rent. However, you want to buy a property rather than just paying off someone else’s dream.

Joel & Natalie’s Story

Joel & Natalie, both professionals, were well on the way to establishing their respective careers and had saved $60,000. They were renting in a fashionable inner city suburb and very much enjoyed café culture. In their neighbourhood, they could only afford to buy an old house which they would have to renovate, but this would stretch all of their resources and destroy their quality of life. What they could afford was a small one-bedroom apartment, which was not ideal for their medium to long term goals, as they wanted to start a family in a few years. The option of moving further out of town to get a larger dwelling was not appealing either. They wanted to get into the property market so they wouldn’t miss out, but they were unsure of what to do.

dpn’s solution

Joel & Natalie sat down with DPN and asked what options were available to them. Their consultant at DPN encouraged them to get a Property Accumulation Analysis to review their options.

Through the analysis, Joel & Natalie saw that they could maintain the lifestyle they’d come to enjoy and keep renting in the area they liked, while at the same time using their savings to purchase an investment property in a strong, growing area. Being on good incomes and paying a healthy amount in tax, they were happy to learn that they could also get a decent tax refund that would minimize their holding cost, to the point of the investment property being cheaper than dining out. They also learned that with a bit of focus and budgeting, they could save another deposit for a second property investment within 18 months.

Within three years Joel & Natalie have purchased three investment properties and their portfolio is now worth over $1.2 million. The total cost after tax is under $700 a month, the price of a small car loan. Joel & Natalie have over $150,000 in superannuation combined,and they are in the process of setting up their own Self Managed Super Fund (SMSF) to buy their fourth property with their super. The advantage of this is that the rent combined with their employers' 9% contributions will cover the total holding cost. For a young professional couple who were initially confused about property, they’re now on a clear path of building wealth through accumulating properties. In fact they’ve been able to upgrade to a larger rental property in anticipation of growing their family.

what dpn can do for you

If you have been working hard and have saved a deposit, paying your fair share in tax and are now keen to consider your property options, give DPN a call on 1300 713 318 or fill in the contact form below, to see what we can help you achieve.