Property Investment Options for Low Income Earners

Smartline, a Home Loans franchise business, is encouraging low income investors to look into residential property investment. Smartline argue that property investors do not need to have high incomes.

In a media statement from the mortgage broking franchise, Smartline managing director Chris Acret said that borrowers on low incomes also have the opportunity to invest in property but they may need to ‘think outside the square’.

Often people who are on low incomes believe that they can not take part in investment and focus all their energies on purchasing their own home. However it is not necessary to make your home your first real estate purchase. In some cases it makes more sense to firstly purchase an investment which is paying you a rental income as well as offering negative gearing benefits.

“The best type of investment properties for low income borrowers are properties that are at the lower end of the scale in price but offer higher yields,” he explained. “

Smartline are advocating that low income earners consider outer suburbs for investment. There are parts of Australia where it is still possible to purchase a property for under $250,000 with reasonable income and growth prospects.

Acret suggested a neutrally or positively geared investment strategy, and that these investors should be looking for an 8-9% yield – or $380 per week rent on a $250,000 property.
Borrowers looking for home loans for investment purposes are able to borrow up to 95% of the purchase price.

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