Ways to invest in property that won’t break the bank

Property invest has always been considered a safe investment.  However, there can be a lot involved with buying an investment property.

In an article published in the Courier Mail on 28 October 2023 they set out 10 ways you can invest in without breaking the bank:

1. Your super – most balanced super funds invest about 10% in real estate either in Australia or overseas. Some retail super funds offer access to investment funds that focus on real estate.
2. Family and friends – form your own investment fund with family and/or friends. 50% of something can be a better investment than 100% of nothing.
3. Go country – investing in regional properties can mean that your mortgage is a lot less. There are still various regional areas where you can buy a property for $300,000 or less.  In the Lockyer Valley you can get rental properties for between $300,000 and $500,000.
4. Listed property trusts – more commonly called real estate investment trusts, these trust buy properties either commercial or residential and you can buy shares in the trust. Depending on the trust you can buy in for a few thousand dollars.
5. Global REITS – Just like number 4 above, however, with overseas properties.
6. Unlisted Property – you can buy into unlisted REITs which are like number 4 above but not listed on the stock market.
7. Exchange Traded Funds – These have increased in popularity in the recent years and are effectively a managed investment fund.
8. Small commercial property – some commercial property can be purchased for less than a residential property. There has been large demand for industrial warehouses in recent times.
9. Fractional investments - Fractional property platforms allow people to buy portions of an individual property then share in its costs, income and capital growth.
10. Property syndicates - Another way for investors to pool money to buy big assets, property syndicates fell out of favour after some had financial issues during the global financial crisis 15 years ago. However, syndicates still operate throughout Australia. They typically focus on commercial properties, with individual investors holding significant stakes, sometimes more than $200,000.

Some of these options are complex and before considering any of the above options I would recommend that you talk to your financial advisors and carefully consider which option best suits your needs.