This is a fairly common shock many first home buyers have to contend with. They’ve been saving for a little while, their careers are trundling along quite nicely and they’ve decided the significant other they’ve been with for a while is worth taking to the next step. Home Ownership.
It’s a fairly logical next step and so they’re a little taken aback when all the online calculators suggest that the home they can afford to buy is 30 kilometres away from, not just their current suburb and their proximity to work, but also their connections to their family, friends, restaurants and all the social facilities that make up their life.
They desperately want to own their own home but not at the cost of a 60 minute or more commute to work each day and certainly not at the expense of the time they have with friends in their social structure.
So, can you really have your cake and eat it? Absolutely.
Try this on for size. Instead of buying a home that fits into your budget, why not build your wealth and wait for your dream home to come into your new expanded budget.
As your wealth builds, your borrowing capacity builds also. So don’t accept limits placed on your dreams by lending institutions.
You’re still going to buy property but instead of living in it, you’re going to rent it out and have a tenant and the ATO help you pay it off. As your equity and cashflows grow, you keep buying more properties. All the while you continue to rent in the suburb you want to be in, and patiently wait for the day, the house you’ve always wanted to come onto the market.
It is far easier to build your wealth with property while renting yourself, than it is to buy a home, wait for equity to build and then buy a rental.
When the first property you buy is a rental, you get to enjoy the tax benefits everyone talks about but more importantly it’s far easier to build equity and move onto your next one when you’ve got multiple people, you and your tenants, paying it off.
If you’re not sure how to build this strategy into your own plans, please get help. The benefits of being a property investor are many and varied, there also exist a myriad of problems, should you not do it properly.
Good Luck, I look forward to one day seeing you, in the home of your dreams.