A combination of strong currency, resource growth and economic prosperity makes Australia an ideal location for property investment, but how does one become an investor?

Taking that first step into the world of ownership-for-profit can be intimidating, but remember – you don’t have to be inordinately wealthy to get a piece of the pie.

Buying a second property can be the solution to a lot of different goals – including giving your children a head start by buying their first home, buying a vacation home, earning a second income or planning for your retirement.

This may sound all well and good but what you are probably thinking is, how can I afford a second home when I’m still paying off my first one?

Flexible lending options

There are property investment loans out there that can help aspiring investors achieve their real estate goals without breaking the bank.

Lower interest rate loans with flexible lending options can make the difference for lenders – the money saved is often significant enough to make the decision to pass or buy.

Refinancing may also be an option, depending on your existing loan and the terms attached to transferring your mortgage.

Where should I start?

If you would like to secure a cheap home loan and begin your venture into property investment, you may wish to first revisit the terms of your existing home loan.

Then, it is advisable to input estimated figures into a mortgage calculator to determine what your payments would be and compare that to your expected income.

Try a variety of scenarios before making any final decisions and make sure you do your homework before signing on the dotted line.

Real estate can be a lucrative way to earn extra income, but every investment holds a certain amount of risk so it is recommended that you get a comprehensive view of your intended strategy before any significant commitments are made.

A MyRate review of your financial circumstances might help to identify potential risky scenarios in the hope that they can be avoided.

First home buyers are often enamoured by the thought of owning their very own property – but can sometimes forget about some of the more challenging aspects of being a real estate owner.

Buying property is a big responsibility and often one of the largest financial commitments that many Australians will make in their lifetime.

Before you set out to secure a cheap home loan, you may want to follow these tips to ensure you make the right decision for your personal situation.

Analyse your finances

Borrowing money can assist you in making a solid investment towards your future – and maybe even help you purchase a home suitable to starting a family.

But before you commit yourself to a lender, you may wish to take a critical look at your financial situation.

Are you already in debt? Do you have savings that you can put towards a down payment? Do you have a secure job that you can rely on?

If the answers to these questions are not positive, you may wish to take a step back and establish a budgeting and savings plan to help get you into a better position before applying for a loan.

Use a mortgage calculator

Perhaps one of the best ways of determining whether or not you will be able to afford mortgage payments on a month-to-month basis would be to add estimated figures into a mortgage calculator.

Doing this will help you get a realistic look at what you will be paying each month, once you are responsible to a mortgage.

You can then compare future payments to future income to see how much room you have left for other living expenses and saving for the future.

At the very least, it will help you to decide which loan – whether it be fixed or variable – would be best suited to your financial situation.

MyRate reviews our site regularly and strives to improve transparency and understanding for all borrowers

If you've considered buying property at auction, you may wish to secure yourself a cheap home loan and prepare for what is to be Victoria's fifth largest auction weekend.

The Real Estate Institute of Victoria (REIV) is expecting around 1,210 auctions to be held this Saturday and Sunday (March 23-24), and with recent clearance rates being around 69 per cent, REIV chief executive Enzo Raimondo is hopeful that a large number of the properties will be sold.

The current clearance rate of 69 per cent is two percentage points up from this time in 2011, and seven points up from this time in 2012. This is showing that the property market is slowly improving over time.

"The Melbourne residential market has turned the corner after two slow years with more active buyers and sellers," stated Mr Raimondo.

Mr Raimondo has stated that the increase in confidence and the low interest rates were helping to improve conditions in the Victorian property market.

Adding to this is also the research by REIV detailing the increasing prices and clearance rates for 2013 so far.

"REIV Research suggests that the market is in a mild recovery which should provide buyers with confidence that they won’t be priced out of the suburb they have budgeted this autumn," said Mr Raimondo.

Suburbs that are seeing the highest number of auctions this weekend are in the inner east and south-east suburbs.

Areas that have seen high clearance rates so far this year are Richmond (87 per cent), Hawthorn (80 per cent) and Glen Iris at (76 per cent), which means that purchasing property in these areas may be quite competitive.

However, areas in Victoria that have seen lower clearance rates are Brighton (66 per cent), and Reservoir and Toorak both at 67 per cent.

If you're looking for home loans in Australia for residential or investment property in Victoria, then this weekend presents a great opportunity to buy.

You may wish to brush up on the local auction laws to ensure you are prepared to make a bid.

At MyRate, we review and monitor changes to borrower rates across the industry and continue to work hard to ensure our product is competitive for all our borrowers.

Keen property investors may be interested to know that the New South Wales government announced last week (March 16) that they will be introducing a new housing supply program for Sydney to meet the needs of the rising population.

This is great news for first home buyers, and people looking to use property investment loans, as there will be plenty of opportunities available for people to purchase property.

The NSW government have stated that around 171,700 new homes will be built and made available across Sydney.

In a press release dated March 16, NSW premier Barry O'Farrell stated: "This massive program will see a wide range of housing types built to suit all budgets in existing suburbs and in new release areas – with jobs, shops, schools, parks and transport all close by."

On top of the availability of houses, the NSW government has also announced that more employment opportunities will be created alongside the new housing. This means that people will be able to work closer to where they live.

"A new approach was needed to deliver the housing Sydney needs – and that’s why we cut red tape, released more land and generally boosted confidence for builders and homebuyers," said Mr O'Farrell.

"The steps we’ve taken have helped lift housing completions in Sydney in 2012 to 18,186 – the highest level since 2006."

The Draft Metropolitan Strategy for Sydney was also released earlier this week. It aims to turn Sydney into the best place to do business in and live in Australia. The draft strategy also details nine key 'city shapers' – which are locations that will see a lot of development and will help to shape Sydney into being a thriving metropolitan area.

These locations include: Global Sydney, an area which stretches across the CBD and into northern Sydney; Sydney Harbour, Parramatta, the Global Economic corridor, Parramatta Road corridor, North West Rail Link corridor, Anzac Parade corridor, Western Sydney Employment Area and Sydney's Metropolitan Rural Area.

Minister for planning and infrastructure in NSW Brad Hazzard stated that Sydney's population is set to grow by 1.3 million over the next 20 years, and the draft strategy outlines the way that the government intends cope with the increase.

At MyRate, we review and monitor changes to borrower rates across the industry and continue to work hard to ensure our product is competitive for all our borrowers.

If you're about to jump on the bandwagon and buy your first property, then you may want to consider using a home loan calculator to determine what type of loan options are available to you. As there are many different kinds of home buyers, there are also different kinds of home loans.

Property as an investment

Purchasing property for investment purposes is a great way to secure a second income, and gain value on an investment over a long term period. For keen investors out there, you may want to consider taking out an investment home loan.

These types of loans provide flexibility to help you to grow your investment portfolio, and depending on your financial situation and needs it can be offered through a low doc loan or line of credit.

Your first home purchase

For those entering the property market for the first time, you may want to consider looking at home loans for first home buyers.

Our seasoned home loan consultants can help you to determine the best option to suit your financial needs, and can also help you to navigate your way through First Home Owner Grants supplied by the federal government.

Depending on what type of house you purchase, and when you purchase it, you may meet the requirements for a grant to help you pay for your first home.

Self employed

Being self employed means that you can work your own hours and be your own boss – something that we all dream of! However, you may not always have the correct supporting tax paperwork and income documents for the home loan application process.

This is where low doc loans come in. They offer people who are self employed and those with a fluctuating income the opportunity to take out a great home loan to purchase property with.

Meeting with a consultant will help you to identify the best ways to meet your mortgage repayments with a fluctuating income.

A MyRate review of your financial circumstances when applying for a home loan will help to identify the best loan option to suit your needs.

For those who are currently looking for home loans in Australia to purchase property, you may be interested to know that Melbourne is seeing growth in median house prices – meaning that home value is potentially on the rise.

According to statistics released by the Real Estate Institute of Victoria (REIV), the median house price in Melbourne has increased to $529,000 for 2012. This is a 26 per cent increase in house prices from $420,000 in 2007 over a five year period.

This is positive news for people wishing to take out a cheap home loan, as it means there is potential for future growth in property values in the coming years.

The statistics showed that overall it was the middle suburbs which saw the most growth. Properties located around 10-20 kilometres from the CBD recorded high rates of growth with median house prices increasing by 31 per cent over a five year period.

Medium term change for units and apartments saw similar growth at a rate of 25.4 per cent to a higher median price of $445,000. In contrast with houses, the apartments and units that saw the most growth were in the outer suburbs of Melbourne at a rate of 33 per cent over the last five years.

In the last 12 months ending February 2013, Melbourne has seen the rise of the million dollar suburbs. There are currently 39 fringe city suburbs with a median house price of over $1 million.

East Melbourne is currently at number one with a median price of $2,540,000, with Toorak coming in at a close second at $2,212,500. Listed at third place is Canterbury, with a median price of $1,800,000.

At MyRate, we review and monitor changes to borrower rates across the industry and continue to work hard to ensure our product is competitive for all our borrowers.

First home buyers looking to settle down in their dream property this year may be interested in a newly released list of the 150 most in-demand suburbs across Australia.

Published in its entirety in this month's issue of the Australian Property Investor (API) magazine,  the list features the top areas across the country that have both the most people searching per listing and the least amount of time spent on the market.

There are 30 highly desired areas from each major state, with Sydney's south emerging as a hotspot for buyers with suburbs such as Jannali, Gymea, Miranda and Kirrawee all making the cut.

Meanwhile, areas closer to the city such as Enmore, Erskineville, Lane Cove and Alexandria have all spent the least number of days on the market.

Melbourne's most popular areas include Fitzroy North, Clifton Hill and the outer pocket of Blackburn North, with these suburbs seeing the highest number of buyers searching per listing.

Melbourne's quickest selling suburbs include Collingwood, Caulfield and The Basin – a truly mixed bag of cheaper outer suburbs as well as inner-city "blue-chip old favourites", according to API deputy editor Shannon Molloy.

Infrastructure is driving up demand for the Brisbane suburbs of Holland Park, Stafford Heights and Windsor, with each of these areas situated close to recently completed transport improvements.

Queensland mining towns such as Blackwater, Dysart and Moranbah also made an appearance on the list for their quick selling times.

Adelaide's Goodwood and Clarence Park are seeing a spike in most searched listings among buyers while Perth bargain suburbs like Lockridge and mining hotspots like South Hedland are the WA suburbs making the cut.

"Interest rates are way down, rents are skyrocketing and property in most respects remains cheaper than it was before the GFC. I think many people realise that now's the perfect time to crack into the market," Mr Molloy said.

If you're ready to take the plunge into the property market for the first time, it's important to compare home loans to find the best deal for you.

MyRate reviews our rates regularly in order to ensure that they are competitive for all borrowers.

A statement released by the Real Estate Institute of Victoria has identified positive and healthy results for 2013 so far, with the upward trend from the end of last year continuing over to the new year.

The attitude of Victorian purchasers has been reflected in the increase of property clearance rates and residential listings.

February held the highest amount of clearance rates since May 2010, with 70 per cent of properties at auctions being sold.

The statement has noted that low interest rates and low house prices has partly driven the increase in confidence.

The REIV also stated that consumer confidence is key to the increase in sales, and needs to be maintained to keep this trend going.

Latest results from the weekend March 10 and 11 have continued to show positive results – with a 67 per cent clearance rate out of a total 176 auctions.

This shows an increase of six per cent when compared to the same period time last year. However, the total number of auctions is lower due to the long weekend.

The weekend of March 2 and 3 displayed better results – with 915 total auctions and a 68 per cent clearance rate.

In a December 2012 release predicting sales trends for 2013, REIV chief executive officer stated: "There are three reasons to be confident about prospects for the market in 2013: consumer confidence levels are above this time last year; the clearance rate is higher than this time last year; and overall prices have been stable."

Those looking at taking advantage of the current low interest rates and house prices in Victoria may want to consider using a home loan calculator to compare home loans and determine which type is best suited to your needs and financial situation.

At MyRate, we review and monitor changes to borrower rates across the industry and continue to work hard to ensure our product is competitive for all our borrowers.

The Real Estate Institute of Queensland (REIQ) released its Queensland Market Monitor (QMM) report this week (March 8), which showed an increase in the number of units and townhouses being sold in the state over the past year.

When compared to December quarter 2011 results, it can be seen that sales of these property types increased by 8.9 per cent in the same quarter of 2012.

REIQ chief executive officer Anton Kardash said that the southeast corner of the state was the largest contributor to the increase in sales figures.

"Compared to the December quarter in 2011, the numbers of sales in Brisbane and the Gold and Sunshine coasts continues to trend upwards, which of course partly reflects the concentration of, and demand for, these types of properties in South East Queensland," said Mr Kardash.

"Also this quarter, there has been an increase in the numbers of affordable unit sales across the state, especially for properties priced between $250,000 and $350,000, as buyers take advantage of some attractively-priced properties."

Median prices for units and townhouses on the Sunshine Coast increased by 1.1 per cent, and inner Brisbane suburbs New Farm and South Brisbane have also seen price growth.

Townsville saw increased sales of houses in the $350,000 – $500,000 price range, which helped to push the median house price up in the area.

This may encourage Queenslanders to secure property investment loans, as the gradual rise of house prices in the area means that property is becoming more valuable.

Units and townhouses are great investments, as they are often cheap to buy and easy to rent. Couples, singles or small families wanting to live in the city and looking for low-maintenance homes are the target market renters for these types of houses.

If you're an investor wondering "how much can I borrow?", check out an online home loan calculator to find out your borrowing capacity.