As I sit here pondering my weekly bills and expenses over a cup of coffee, I think about what will be on credit and what will be from my bank account.  I then start to think about my overall debt position.  This frightens me!!

I read recently that most Australians (like myself) worry about re-paying home loans.  The Australian Bureau of Statistics reported that Household debt at the end of 2013 was $79,000 per person.  This is the highest than at anytime in the past 25 years.

Inline with higher debt, the ratio of house hold interest payments to income is higher than most times in the past 50 years.  Though, the rate of increase has slowed since the GFC from an average of 10% (2001-2007) to 2% per year (2007-2013).

This Australian debt position and the current budget announcements have left me and most Australians wondering what else can I sacrifice to meet these repayments and other expenses.

I am sure that some Australians are already making big sacrifices such as forgoing holidays, new cars or investments to make repayments.  However, it’s not all bad news.  On a positive note, there is speculation that we’ll be in for a long period of flat interest rate policy and possibly another cut.

With high debt and mortgage repayments, can you still build wealth through property investment even if you are starting from scratch, have minimal cash or no credit?  Fortunately, the answer is yes.

Understanding your income and expenses, including where you could tighten your belt is the first step.  Next you need to develop your property strategy and set goals.  You may like to consult property experts or a financial planner to align your financial strategy with your property strategy, which will assist in building your portfolio.

Like any type of investment there are risks. Initially the risks may seem big but with the right strategies and safety nets in place you are on track for building your financial future.

Real estate is cyclical; prices rise and fall like waves.  There a variety of home buyers in the market; from first home buyers, to up-graders, down-graders and investors.  All have different requirements and through due diligence and research; you can find your ‘castle’ to serve you well into the future.