Buy a $200,000 property with a 10% deposit ($20,000) and the payment for a standard 30 year $180,000 table mortgage at 5.25% is only $230 per week. If you only used a 5% deposit ($10,000) the payment would be $242 per week approximately. This is likely to be less than the cost of renting the same property.
Residential Property Investors are now competing with First Home Buyers, as they see the merit in buying property as a good long term investment. People are always going to need houses to live in, and it is likely that an increasing number of people will be renting into the future. Rents are rising.
Properties have doubled in value every 8 years on average over the last 40 years in Feilding. If the value doubles to $400,000 in the future, the equity will have increased from say $10,000 (5%) to $210,000 plus the repayment of principal in that time frame. Compare that to a fixed interest investment! Don’t hesitate to contact me for advice.