Breaking the $300k barrier: 10 innovative tips to make home buying achievable in 2024

By Realestates News On Oct 5, 2024

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In the midst of Australia’s intimidating property market, Suburbtrends recently reported that you need to earn $301,769 a year just to think about buying a house.

While that might sound daunting and completely out of reach for most, Aus Property Professionals’s Lloyd Edge has challenged that notion, and come up with some advice for buyers to make home ownership achievable as soon as next year.

Regions where there are 25+ serious buyers per home

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“In regions such as Sydney’s Northern Beaches and Melbourne’s Inner East, the threshold for property affordability has soared to levels that many find unattainable, Mr Edge said.

Aus Property Professionals director Lloyd Edge

“This challenging scenario underscores the need for innovative property investment strategies, especially for those embarking on their first property purchase.”

With median house prices soaring to as much as nine times the average annual income in November, Mr Edge reassures househunters that there are practical pathways for those aspiring to break into the property market.

Getting a leg up on the property ladder doesn’t have to be as hard as it is being made out to be, according to Lloyd Edge. Picture: NCA NewsWire / Max Mason-Hubers

“Navigating the complex landscape calls for a shift in traditional thinking about property investment, inviting first-time buyers to explore alternative avenues and creative solutions to overcome the financial barriers in these high-demand locales,” Mr Edge said.

Here are the Aus Property Professionals expert’s 10 tips for first-home buyers to take heed of in 2024.

1. Smart Strategic Approaches

Success in the 2024 property market, especially for first-time buyers, hinges on making smart and strategic investment approaches, not just high incomes.

2. Targeting High-Yield Areas

Aim for regions with yields of around 5.5 per cent to 6 per cent or more to get close to positive cash flow, comfortably service loans, and avoid mortgage stress.

3. Buying Under Budget for Value Addition

Understand and stick to your budget, allowing room below it for renovations or further investments. This approach enables value addition and future property purchases without overstretching financially.

4. Leveraging Smaller Investments

Begin with smaller, strategic investments in undervalued or growing areas. Emerging suburbs often provide more affordable entry points and potential for quicker appreciation.

5. Identifying High-Potential Areas

Focus on areas with ongoing development or infrastructure improvements, as these often experience property value increases.

6. Creating Equity Through Improvements

Enhance your investment’s functionality and aesthetics through strategic renovations, boosting the property’s market value.

7. Researching ‘Bridesmaid Suburbs’ for Growth

Delve into emerging markets that have…