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

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.

RELATED: Houses for $469k? Vic’s most affordable suburbs revealed

Regions where there are 25+ serious buyers per home

Beyonce, Brad Pitt, Rihanna score priciest moves of the year

“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 untapped potential. These “bridesmaid suburbs” are affordable and offer significant growth opportunities.

8. Staying Informed on Government Incentives

Keep up-to-date with government schemes that provide financial assistance or favourable terms, making property investment more accessible.

9. Focusing on Long-Term Investment:

View real estate investment as a long-term journey, prioritising sustainable growth and stability over quick gains.

10. Understanding Property Management:

Learn the nuances of effective property management and maintenance to preserve and enhance the value of your investment.

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Aussie striker’s $22m Moonee Ponds home could shatter record

Winery where Neighbours filmed looking for a corking sale

Inside illustrator Bettina Guthridge’s 162-year-old converted farmhouse