I read an article the other day which talked a lot of truths in regards to first home buyers and their expectations in regards to saving for their first home. It got me thinking about how times are very tough right now for first home buyers but if this is you, you need to know that there is still hope and with the right strategies in place you can live the aussie dream and become a home owner.
While there are certain things in the article that we would disagree with, and it would have been great to be given $34,000 to start out, the overall message is very true.
You can’t expect to reach your financial goals without making sacrifices.
It might mean not going on that extra holiday in the early years, or not living the lavish lifestyle that you see celebrities living while you are still young. After all, the early years are the years when you have the most opportunity. You may be lucky enough to still live with your parents and if not, most of the time you won’t need a massive place to rent, so living expenses should be fairly low. This creates great opportunity and the possibility to save even more every week. The problem we have though is the goal posts keep on moving and every time you think you are getting close to saving the deposit, you find prices have gone up again. So how do we break this endless cycle?
There are certain strategies that can be used to break this cycle but be warned, it does mean sacrificing what you want now to ensure you have a better future.
“You might have to buy an investment property first, you might have to share with mum and dad, you might have to buy with a friend, but you’ve got to get your foot in the door and you’ve got to slowly get up the ladder,” says property millionaire Tim Gurner.
One strategy that is commonly being used now is to buy an investment property in areas where prices are much more affordable, and in locations that are primed for growth. With lower expenses, and having someone else pay for your mortgage, you can then rent where you want to live or if you are lucky enough, live with your parents while you wait for the investment property to grow and create enough equity for you to use as a deposit in your own home.
With the right research and financial strategy, you will be able to buy an investment which will create the equity you need, years earlier than anyone would be able to save. In the coming days we will write another educational blog on how to create the best strategy and what you need to do to make this happen.
In the meantime, if you want to know more about the different strategies out there, or how you can help to set your children up for the future, than get in touch and we will team you up with one of our expert strategists.