With interest rates remaining at an all-time high, the cost-of-living peaking, and considerable spikes in property price growth in most major Australian cities, simply getting a foot on the property ladder is challenging for our younger generations – and an investment property seems like a pipe dream. While being a lifelong renter or hopping on the tiny home trend might seem like the only options right now, we’re confident that not all hope is lost. And that it will be possible for future generations to secure worthwhile investment properties if they take the right steps now.

Here’s why we’re feeling hopeful…

Our top three indicators of a bright future for future property investors:

1. Government funding and incentives

With the lack of housing causing considerable pressure in most states around Australia, both the Federal and State Governments have invested, and are projected to further invest significant amounts into boosting housing stock. For instance, the current Palaszczuk Government’s Housing Investment Fund (HIF) is providing much-needed funding relief through subsidies, one-off capital grants and other support to encourage the development, operation and finance of vital housing across Queensland.

Similarly, the Federal Government has recently invested heavily in regional and rural areas to stimulate growth. In our recent blog, Investing in Regional and Rural, we covered that the Federal Government will be investing $1 billion over three years to support infrastructure and liveability enhancements. This makes regional and rural areas a stand-out investment opportunity for future generations.

Conceptual illustration of Funding, Grants and Incentives, Government Finance


2. Interest rate decreases

Since May 2022, the cash rate has increased 12 times (and counting), with estimates that some borrowers will be paying an extra $15,000 of interest a year. It’s left us wondering if and when these rates will finally decrease or at least stabilise. According to the four big banks (ANZ, Commonwealth, NAB, and Westpac), relief won’t be seen until various points throughout 2024. And while interest rate predictions always involve a degree of crystal ball gazing, many experts predict that with the stabilisation of global supply chains, we could see these rates decreasing within the next couple of years. This will bring much-needed relief to those looking to enter the property market.

Decreasing of interest rates / financial concept.


3. Global Economic Stabilization

The state of the global economy is the most significant contributor to inflation and increased interest rates. China contributes the most to global supply chains and the global economy, and with COVID disruptions and the double whammy of the Russian and Ukrainian war, the stress on the global economy is unlike what has been seen in recent years. Strains put on supply chains and uncertainty have made it difficult for the economy to stabilise globally. These strains directly impact individual countries, like Australia, and cause internal disruptions to our local economies.

As we make our way out of the COVID-induced disruptions and the conflict between Russia and Ukraine is predicted to ease, the global economy will stabilise. As a result, we’ll see an increase in positive growth-enhancing policies in government and further investment in education, infrastructure, and technology.

With these glimmers of hope to look forward to, eager first-time investors should use this time to get educated and prepared. That way, you’ll be ready to jump on the property ladder when the time feels right for you. Here’s how:

1. Get learning

Knowledge is undoubtedly the key to successful property investment. Understanding the basics of the investment process, how to get the most out of different property types or locations, being      aware of investment dos and don’ts, and everything else you can soak up is the best leg up when it comes time to invest. There are books, short courses, online resources and plenty of industry    experts like the First National Real Estate team to tap into.

A man studying on online courses.


2. Start planning and get saving

The first step when buying any property, whether it’s your first, second, third or tenth, is having a solid financial plan. The best way to start this process is to focus on building up savings, minimising any debts like student loans, and gaining a clear overall picture of your financial situation and available budget. This enables you to understand what initial budget you have available and what ongoing costs you will be able to service over time.

Text on wood block - Start saving more.


3. Consider your funding options

Funding an investment property doesn’t necessarily have to involve just one individual and a loan from the bank. These days, plenty of options are available, and there are different ways to enter the property market. For example, it pays to explore opportunities like crowdfunding, government incentives and group ownership loan structures. Using your time to consider and research funding and finances will save you stress, money and time and, ultimately, lead to better overall outcomes.

If you’re unsure where to start when looking for government incentives and funding options, our First Home Buyer Guide eBook has you covered. It provides a valuable and easy-to-understand breakdown of all first home buyer financial assistance options available, from Federal Government to a state-by-state breakdown. It can make a world of difference in reaching your goal of purchasing your first home.

4. Rent-to-own

With a soaring cost of living and wage growth that’s not keeping pace, saving enough for a deposit is often a tricky first step to property ownership. This is where investigating rent-to-own arrangements can soften the blow. It’s a relatively new concept in Australia, allowing renters the option to buy the property before the lease expires at a previously agreed-upon price. A portion of your monthly rent payments could count towards your down payment, but this depends on the individual agreement.

unlocks the house key for a new home.


5. Starting small

It can be enticing for first-time investors to start big for maximum returns; however, starting small often pays bigger dividends over the long term. The best first investment is often just getting started, and choosing a smaller first investment (and hunting out pockets of potential) means all your financial eggs aren’t all in one basket. This allows you to diversify your portfolio as your capital grows and, perhaps more importantly, gain confidence, experience, and knowledge along the way.


Stay positive and learn to earn

It’s important to remember that being patient and strategic is very important when investing. Doing your research, learning as much as you can about investment, and properly weighing up your risks will all ensure you are in the best possible position for long-term success. Don’t forget, if you want to do your due diligence and need more support, your local First National Real Estate is ready and always happy to help you on your property journey.


The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial, or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial, or real estate decisions. Click here for full Terms of Use.