In this day and age many of us – especially in the younger generations – are used to getting what we want when we want it.
BY VANESSA DE GROOT
But often that instant gratification is not the best thing for us, or our future. “Why on earth not?!” I hear you ask. And the answer is that it’s often better for our financial health to wait for the things that we desire so much.
For instance, consider the home you live in. It’s usually better to buy a smaller, perhaps older property that you can afford comfortably and have enough left over to buy investment properties so you can build your wealth. Then, down the track, when you’ve invested for a little while and you’ve made some good capital gains and consolidated your position, you can look at purchasing a better property as your home – perhaps you’ll even be able to afford your dream home.
It’s tough to wait though, that’s for sure. Let’s face it, life is short so we have to make the most of it while we can. And often that’s a good justification for getting the house you want straight away, so you can enjoy it for as long as possible.
But at the end of the day as long as where we live is comfortable, it shouldn’t really matter too much, should it? It’s worthwhile sacrificing having a magnificent home in the short term so that we can be financially secure in the long term.
It’s a good idea when you’re starting out in the property market – whether it be buying your first home or buying investment properties – that you sit down and come up with a good, solid plan. This financial plan should outline your goals as to what you want to achieve financially, as well as personally, and the strategies that will help you get there. It can even lay out how long it will take you to achieve your goals. For instance, you might pinpoint a time where you’ll buy your first home, your first and subsequent investment properties and when you can afford your dream home. While you might not reach these goals exactly on time, it will at least give you something to work towards and look forward to.
When you are tempted to stray from your plan, you can get it out and look at it and realise that you’re on track to get to where you want to be, you just have to stick it out for a little longer.
Many readers might think that it’s easy to say this and much harder to put it into practice – and I would agree 100 per cent! But if you have the discipline to come up with a plan and stick to it, there’s no doubt you’ll be better off.
Remember, all good things come to those who wait!
Vanessa De Groot is the deputy editor of Australian Property Investor magazine, www.apimagazine.com.au