Getting a foothold in the real estate market is the dream of many Australians, young or old, and on differing levels of income. While analysis by the Australian Bureau of Statistics has found that the average annual salary for Australians is inching towards $80,000 per year, there are still many people living at a much lower rate than that.

The good news is, even on lower incomes, there are ways you can get started with investment property or your first home loan. Take a look at these three tips for investing on a low income.

1. Demonstrate your ability to save

The best indicator that you are a worthwhile risk to a lender is a demonstrated ability to save consistently, a skill that’s just as important as the amount of capital you have accrued. Putting away a regular amount each pay day, even if it seems a low number, creates a record of your saving ability that your lender can track.

If you can display a solid savings record, it’s a sign that you have the financial discipline required to meet regular home loan payments.

2. Be willing to compromise

According to CoreLogic RP Data, the median house price in every Australian capital city is now over $500,000, rising 11 per cent in the year to September 2015. Raising the necessary depositfor such expensive property – sometimes as much as 20 per cent – can be a struggle even for those on high salaries. Therefore, in order to get your foot in the door of a new home, you might need to temper your expectations a little.

Rather than restricting yourself to capital cities, where high property prices have pushed most first-home buyers out of the race, it’s worth considering the smaller, regional markets. If your lifestyle is flexible, a fraction of the cash required for a Sydney or Melbourne property can net you great value for money in a regional centre.

3. Buy off the plan

Another trick to reduce the amount you need to borrow, and therefore your risk in a lender’s eyes, is to buy property that is yet to be built. Buying off the plan can minimise the amount of costly stamp duty you are required to pay, and some state governments offer further grants for buyers of brand new houses. It’s worth speaking to your mortgage broker about the potential benefits of buying off the plan – they may even have tips about new property developments you can investigate.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.