Realising Your Property Goals
Making property investment based new years resolutions is great, but having clearly defined goals is the key to successfully realising your property dreams, says Frank Valentic.
The January summer holidays are well and truly over and we are all settling into the pace of the year. Did you make any resolutions for 2018 that were property related?
While resolutions are great, the key to success and realising your property dreams are clearly defined goals. If you haven’t started planning, now is the time to put pen to paper and really begin identifying what your goals are for the year.
The most common home resolution we come across is, “I want to save enough for a house”. This is a fantastic goal if you are First Home Buyer but it’s one that can easily slip away if you are not disciplined in your approach. Managing your cashflow and the cost of living each day, while still saving a portion of your income for this goal can be a big obstacle if you have not saved in a while.
Saving up that first home deposit is often the hardest. If you are really striving and serious to get into the housing market, it’s important to first understand exactly where your money is going each month and identify if there are any lifestyle changes you need to make. We recommend dividing your income into 'buckets' with separate accounts for your savings, bills and everyday consumables. Many banks have this feature now, so you can clearly see how your earnings are spent each month. This will also allow you to see when/if you are going to exceed your budget.
There are many ways to save up for a new home – the first and obvious one is minimising spending on things like eating out and takeaway. In addition, it may be time to think about growing your earning capacity to help unlock extra funds as well.
If 2018 is your year to buy a first home make sure that you are honest with yourself when it comes to your expectations in regard to the type of properties and areas to target. In the last three or more years, it has been increasingly difficult for First Home Buyers as property prices have surged significantly in Melbourne. We have found many First Home Buyers have missed out on securing their ideal property because of this.
If this is you, do not be disheartened as there are always opportunities to take advantage of if you are prepared from a financial and strategic point of view. Consider areas outside of your dream suburb and focus on opportunities that show great capital growth in the future. Keep in mind that you can always upgrade your lifestyle as your property journey progresses.
Another great tip is to have a good relationship with the selling agents in the area to keep abreast of any off-market opportunities that may arrive. This is where having a Buyers Advocate can help a great deal, as they have a rapport with numerous agents and have access to early alerts in regard to properties that are not yet advertised to the public.
If 2018 is your year to grow your property portfolio, make sure you keep a level methodical approach and have a clear understanding of your cashflow and finances to make the property investment a positive one. At the end of the day, achieving your goals is not just about setting them. It’s about being disciplined and driven in your approach, taking all the necessary little and big steps to get to that end goal.