27 Feb Smart Thinking

Its true that people are finding it harder to buy their first home. It is also true that those who have a mortgage are paying way more on interest by doing it the traditional way.

With the changes in the lending sector, it has been harder for everyone to buy property,  not only only for first time buyers. but for investors as well  For investors though, it is a seen more as a hurdle along their way which they can overcome by analysing their portfolio and moving on though at a slower pace.

For first time buyer, it feels like to giving up hope before even starting as buying your home is becoming more and more unreachable. Well it is time to change the way to look at things. Why should your first property be your home? 

First home buyers can build a portfolio first and then buy their home when they have greater equity and cashflow from the portfolio to support that purchase  A well built and properly managed  portfolio allows you to buy the house of your your dreams…. just like I did. In my case though I already had bought my first home before I started investing back in 1998. Even though back then I could afford to borrow more,  I did however choose a house in the lower price bracket knowing that it would be a place to live in temporarily. This allowed me to start investing as I still had the borrowing capacity to do so.  Given that in today’s market house prices are way above peoples affordability. There are houses in the lower price range which most first time home buyers don’t consider since they want something “better” for themselves to live in and ….right now.

Purchasing a home will get even harder and this is where we have to start thinking outside the square. What if you built your portfolio first and then bought the home you desire? By building a portfolio using the lower priced yet good houses you are allowing yourself a better chance of getting the home that you want to live in and not finding yourself out of market again.

Not only that, building a portfolio correctly also allows you to pay off your home sooner and also save on the extra interest you would have paid if taken the conventional route.

Today’s market is tough, with smart thinking, people can become creative and still be in control of their finances.  With proper planning and using the right strategies a lot can be acheived.  
This is where you can have your cake and eat it too. Should you wish to discuss your scenario, feel free to drop me a line.

Reshmi Kumar