We all remember the famous line from Pretty Woman. What’s Your Dream? It’s a common question yet, surprisingly, many people don’t have an answer
Dreams can take time and nothing happens in an instant. A five-year plan is an excellent tool in the business of real estate.
Position One have sourced information to share with you, from some of the switched on people we have had the pleasure in dealing with, to give you some ideas about thinking outside the square.
Getting that Deposit
For some, they believe they must save their money week in week out and wait until they have that magic 10% or whatever target it is that they have in their heads.
Five years is about the right target to gain a good deposit.
For some this strategy will not work.
Perhaps the deposit on your dream home is large but the deposit on the in-between home is way less.
For some, the dream home may be just a little out of their reach just at that particular moment.
This does not mean that you should just throw your hands in the air, give up and go rent somewhere.
Saving is a great idea; don’t get us wrong. But what is wrong with making your money work for you whilst you do save?
Sometimes, the only way to get where you are going is by taking the stepping stone approach.
Try these ideas on for size.
Buy Small Now for Big Returns
Why not consider buying a smaller home or unit that can house you and your family whilst you allow it to gain value?
This will give you time to put a little aside each week whilst keeping an eye on the market and trade up when it is right for you.
Split Your Money
Perhaps you are in a position to buy two small units. You could live in one for five years and rent the other out.
In that five-year period you have had someone paying one unit off for you whilst you live modestly in the other.
The capital value on these properties matures and you are able to sell one or both of them at a profit, thus giving you a leg up to your dream home.
Worst House Best Street
If you really have your heart set on a particular suburb and it is just out of your price range this is a great strategy.
You may be lucky enough to find the Handyman’s Delight for little more than land value and take the time to slowly bring your rough diamond back to its shining glory.