We have undoubtedly seen a massive shift in the property market over the last three years. Cost of living pressures, interest rate rises from record low rates, construction costs rising and builders going broke. Is this the end of the ‘great Australian’ dream of owning your home and investing in property?
Times have changed
When my husband and I bought our first house 25 years ago, I had to sell my car to get the deposit across the line. It was back to riding my bike, but we had our own home. Since then, we have gone on to buy, sell and build our property portfolio. My only regret in the property market is selling out of fear, but like everything in life, you learn from it.
Now, with the population increasing and the demand for affordable accommodation stronger than ever, navigating the property market can seem like a nightmare.
Remember, what is hard now becomes easier as the years roll. Despite uncertain times, property has remained a stable investment, and there is no evidence this will change, with the supply of housing still well below the long-term average and what’s actually needed.
There are challenges, but it is worth it.
So, what does it take to own property?
Let’s start with the keys to property ownership:
- You have high job security – this gives the lender more confidence. It means 12 months or more in your current job.
- Debts – your credit cards and other personal loans are under control.
- You are responsible and have a positive and proactive mindset.
If you can confidently answer ‘yes’, it is time to gather your expert team to make it happen.
Where do you start?
It is easy to follow the herd mentality and succumb to fear of ‘what might happen’. Instead, put your energy into careful planning to execute a great property purchase.
Need help with financial planning? You go to a financial planner. Need help with getting the best deal on a loan? You go to a mortgage broker.
Need help with property? Most people try and manage it themselves! Yet, this is one of the most significant financial decisions you will ever make, so why would you go it alone? Like all good decisions, it takes planning to get it right.
It helps to have a team behind you to get it right.
Why do a property plan and strategy?
Your situation is unique, and buying property is no longer about purchasing in the same neighbourhood as Mum and Dad or buying an investment property in your suburb because you like living there!
Your property strategy could be:
- A first home ownership strategy
- An asset accumulation strategy
- A manufacturing capital growth strategy
- An asset protection and tax minimisation strategy
- A finance strategy including long-term debt reduction
There is risk in buying property, but with the right strategy and team behind you can set yourself up for success. Buying property is not a get-rich-quick scheme – it is get-rich slowly.
Your future self will thank you for taking the step into the market despite the present challenges.
- Take advantage of the current uncertainty and buy well
- Time frames and increases in building costs are easing
- Our team can help you buy below market value most times
Why not take the next step and book a free property goal-setting session with one of our team members – email us at [email protected]
This content is general information only. Your situation is specific and individual; as such, you should always consult a registered and qualified professional within the particular area of advice needed.