Tips and tricks for buying your first home, with Kenyon Clarke from Du Val
For many Gen Z and millennials, buying your first property can be a daunting experience. Common questions you may ask yourself may be, will I ever be able to afford a deposit?, how will I repay my mortgage? And will a bank approve my loan? These thoughts can put property ownership into the ‘too hard basket’. However, the reality is, that purchasing a property doesn’t need to be so complicated or as unattainable as many people think. According to Kenyon Clarke, Founder of Du Val and Kenyon Clarke Master Class, "Investing in a rental property can be a smart financial decision for young people in their twenties. Not only can it help financially by way of helping with mortgage payments, but it can also offer long-term capital gains as the property increases in value over time."
Another advantage of investing in a rental property is that it offers an alternative to buying a home to live in. "Many young people in their twenties may not be ready to settle down in one place or may not be able to afford the type of home they want to live in," says Clarke. "Investing in a rental property allows them to get a foot on the property ladder and start building equity, without having to commit to a long-term living situation." When it comes to choosing a rental property to invest in, it's important to consider a range of options, including standalone homes, units, townhouses, and apartments. "A good investment property doesn't need to look like a house with lots of bedrooms and a big section of land," says Clarke. "It's more important to consider factors like location, rental demand, and potential for capital gains. Furthermore, it’s important to consider the benefits of buying a new build/off-the-plan home vs. an existing home. There are many benefits in buying a new home or an off-the-plan home, including things like lower deposits required, the ability to claim interest as an expense and only be subject to five-year bright-line test Vs 10 years on an existing property.
Ultimately, whether you choose to invest in a rental property or a home to live in, it's important to carefully consider your options and do your research. By working with reputable developers and real estate agents, and taking advantage of available grants and subsidies, you can make the process of purchasing a property more affordable and accessible.
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