So, you’ve saved hard, made some important financial sacrifices and got the snowball of cash going with high-interest bank accounts. What do you do with your money now?

Well, that’s easy – dump it all on that niche crypto coin nobody’s ever heard of!

No, that was a joke. Definitely don’t do that. What you actually want to do is start your real estate portfolio but, without the right guidance, this can be easier said than done.

The team at Patrick Leo team have been helping Australians invest in property for over two decades. We outline our top strategies on how to start investing in real estate for buyers with deposits or equity:

Put your dream home to the side

Consider your housing situation, whether you're contemplating an upgrade to your existing home or daydreaming about the perfect place you'd like to call your own one day. It might be tempting to make the leap into what you consider your ideal home, but it's beneficial to wait a bit longer. Here's the reason:

The property you've been longing for might not be the wisest economic choice at the moment. For instance, investing in a more modestly priced property in a neighbourhood that's on the rise could end up being more profitable. Instead of channelling your savings or home equity into a residence that captures your heart, search for an investment property that offers a substantial yield in an area with potential for growth. This approach doesn't mean you have to give up on your dream home forever—it simply implies that reaching that goal might require a bit more patience and strategic planning.

Go for great-value, high-yield properties

When investing in real estate, we’ve got to put our personal taste aside and, instead, opt for great-value, high-yield properties. Let’s say your dream home costs $1.1 million and earns $40,000 in rent per year. That’s a yield of just 3.63%, which certainly is the best-yielding property out there.

Now, let’s compare that to a home in a lower-cost suburb. Let’s say it costs $400,000 and is rented for $20,000 per year. That’s a 5% yield, making it a far better choice for investors.

Using equity

If you own a home and are looking at an investment property, equity can be a great strategy for making this happen. Equity is calculated at around 80% of your home value, minus the amount you owe on it. It can be a great way to free up funds as your current property acts as a security on the new debt for your investment property.

Australia’s property investment specialists at Patrick Leo are here to help you acquire high-quality property to increase your wealth, independence and happiness. Our goal is simple: to get to know our buyers and pair them with high-quality properties that are aligned with their financial objectives. With a skilled team of researchers and negotiators, working within an extensive network of developers, builders and vendors to meet your individual needs, we deliver the best possible result for your property strategy. Get in touch with the experts at Patrick Leo today.

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