What age is too old to invest in Australia's real estate?

For many across Australia, there is a strong lure to becoming a property investor and home owner. The notion of no longer being at the hands of a landlord, and all the uncertainty that coincides with that, is one that spurs many to save their dollars and begin the process of searching for a home they can call their own.

But many buddying investors - whether they're young or old - feel that they're at the wrong point in their lives to be considered seriously by banks or mortgage providers. For the young, they fear that they lack the experience or financial portfolio; for the old, many fear that being at the end of their lifespan means a long-term investment is unlikely.

However, when it comes to investing in Australia's property market, all is not lost. How so? Let's find out.

Investing in property in your 20 or 30s

Despite many young people being afraid that they'll be turned away thanks to a shorter financial history and less time to save, it's actually very money-savvy to begin looking at an investment property if you're able to. Banks often prefer long-term repayment plans thanks to the security this offers them for decades to come and, as a young person, you have a long life ahead of you to repay that plan.

Not only this but if, as a 20-something year old, you make the first jump into real estate investment this year, you could be seeing the value of your property rise as early as next year. This is thanks to the fact that Australia's property market in capital cities such as Sydney and Melbourne.

So for instance, if you purchase a $645,000 3-bed house in Melbourne, you could see your property's value rise to $690,150 in a year. As a homeowner in your 20s or 30s, you have a long life ahead to see your house's value continue to rise, which is something of interest to banks.

Investing in property in your 40s and 50s

While it's true that as you get older you have less long-term opportunity for investment, you shouldn't let that deter you from making your venture into the property market! For one, you have years of experience growing your financial history which, if proven to be reliable and steady, places you in the good faith of mortgage lenders and banks. You might even be able to invest in a larger share of a property, something that your younger counterparts cannot.

The good news is that thanks to the Age Discrimination Act, you can't be turned away due to your age. Just be strategic in presenting your plans for repayment, whether it be 20, 25, or 30 years down the line. Having a good credit history will always help your cause when seeking out a later-in-life property investment.

Investing in property during your retirement

Even when you're retired, investing in property isn't impossible. You should be made aware that it is much harder to invest outright in a property due to your likely lowered income (as your pension replaces a regular wage). If you have demonstrable financial revenue on the side, such as passive income e.g; through stock, then banks may take this into account when offering you a mortgage.

When you or a family member go on to sell it in 10, 20, or even 30 years’ time, you will still have made strong capital gains on the property's value.

Remember, you're never too early or too late to begin investing in real estate. As Randell Tiongson says, "the best time to invest was yesterday, the next best time to invest is today."