Life’s too short to live in a home that isn't the stuff of your dreams. Make your fantasy home a reality with these 11 steps for smarter investment.
Ah, the Great Australian Dream.
What is it to you? If it's owning the home of your fantasies, then you're not alone.
For many, a house that ticks all the boxes is at the top of our lifestyle bucket lists. But how do we get it? Nathan Birch from BInvested says the first thing to do is keep your property dream alive, even if it takes a different form initially.
"When I began investing, the properties I was purchasing weren’t in areas that I aspired to live, they were where I could afford to invest," he explains. "The biggest thing is just to get started, educate yourself around what is possible and look at the numbers. I think people who are seeking to get into the property market should first be looking at investment opportunities rather than purchasing a 'dream home’."
"It is much easier to achieve that dream of buying a beautiful home, once you’ve set up an investment portfolio as an alternate income stream."
Here are Nathan's Top 11 Tips to snagging your dream dwelling:
- "Set clear goals for what you want to achieve, and then arm yourself with a team of the best people to help you attain those goals."
- You will always be able to afford to rent somewhere nicer than you can buy, no matter how wealthy you are, so work towards buying your ‘dream home,’ by looking at investment opportunities that will first grow your wealth, rather than getting locked into a mortgage for the next 30 years to pay off one property. "Look at the numbers and leave emotion out of the decision-making process," he urges.
- Have a clear goal for what you want to achieve and how to get there. Property investment is more of a marathon than a sprint, so be patient with your plan.
- "Leave emotion at the front door," says Nathan. "Don’t look for the perfect house on the perfect street – look for a positive cash flow investment."
- Consider buying outside your backyard. "Queensland currently has a lot of affordable investment properties with high growth potential," he says.
- "Do your homework and learn what you can about investing and seek the advice of others, but be wary of frauds in the market."
- Seek the best financial advice to support you on your investment journey, Nathan suggests. "Find someone who has helped others to build a portfolio and achieve their goals."
- "Build a team around you, that incorporates not just financial advice, but mortgage brokers and property managers who will help you achieve your goals." If you don't know anyone in these fields, do a short-course in your area to create some connections.
- Look for properties that are below market value, have high growth potential and are positive to neutrally geared where possible when investing. These effective steps initially may seem like a sacrifice short-term in regards to your dream home, but in the long-term, they may prove the investment building blocks that make it a reality.
- "Don’t get caught up in other people’s opinions, carry out the right decisions for you!"
- "Start now!" Nathan enthuses. "The biggest thing that is holding people back is their fear of taking the plunge. Take action, even if it is just the first small step towards achieving your goals."
Selling Houses Australia airs on Wednesdays on the Lifestyle Channel at 8.30pm.