WHAT IT TAKES TO GET INTO A FIRST HOME TODAY
So many first home buyers feel locked out of the property market nowadays.
This is such a shame.
You know the old saying: when life hands you a lemon, make lemonade? Well, why not sell that lemonade for a profit?
Achieving home-ownership is no different. Just because you can’t buy a house in the conventional way, it doesn’t mean you can’t buy a house at all.
WHY DO YOU WANT TO OWN YOUR OWN HOME?
You may think this question is a no brainer, but think about it anyway.
Most people ultimately want to own their own home because it means they own an asset.
Property is a valuable asset to hold over the long term. It goes up in value over time, and most people believe they can sell the family home at retirement in order to downsize.
The only thing about the family home is that it doesn’t earn an income. You can’t rent out a property if you are living in it. This means you have to pay back the mortgage with your own, hard earned cash over a long period of time.
WHAT CAN YOU AFFORD?
If you can’t afford to buy your own house, why not buy some investment properties instead?
Building an investment portfolio of good growth properties with a strong cash flow can help you buy your own house later down the track.
This is exactly what Nathan Birch did. As the co-founder of Binvested, Nathan is well known for having built a portfolio of more than 200 properties before the age of 32.
He spent many years building up his portfolio before he purchased a PPOR. Now, he is building his dream home – or should we say mansion?
So, while you may have to rent for a little while longer, you will be improving your financial situation by building an asset base that is also paying an income.
DON’T JUST BUY ANY PROPERTIES.
If you plan on building an investment portfolio, make sure you do it correctly. It is important to structure your financing in a way that will allow you to carry out your plan.
A finance strategist can help you figure out the best loans to take out at each stage of your journey.
A property investment expert, such as Nathan, can help you find the best types of properties at a competitive price. They can also help you devise your strategy and guide you throughout the investing process.
GETTING YOUR OWN HOME FOR LESS THAN MARKET VALUE.
It may be possible to build your own home for less than it would cost to buy.
As a community of investors, Binvested has group buying power. This enables us to secure bulk land deals at a wholesale price.
Many of our clients have been able to earn really good chunks of capital through these deals. After buying land for less than market value, our clients build for a competitive price.
This enables them to build their own home for hundreds of thousands less than it would cost to buy.
The project is also much cheaper than any house and land package.
This is exactly what Jo is doing. Jo and her husband own and run Benny’s Bistro & Catering at the Mayfield Hotel in Newcastle’s north-west.
She says, rather than spend $600,000 to $700,000 on a run-down house in Waratah, her and her husband have decided to build their dream home for a similar price.
They have put down their deposit on some land at Fletcher, which is about a ten-minute drive from where they currently live.
It wasn’t all clear sailing for the 39-year-old mother of two. As restaurant owners, she and her husband had to build up their business more in order to get the finance they needed to go ahead with the deal.
“That has been something that we have had to work towards,” says Jo.
Once they were able to get the loan that they required, the land purchase was a much easier process.
“Everything that we have been able to do with Binvested since we got the deal put to us has been quite straightforward.”
She says, when it comes to achieving home ownership, “It’s about sticking to what you want.”
She and her husband wanted a good family home, and so they “kept plugging away” until they found a way to achieve this.
BUILDING A PPOR THAT EARNS AN INCOME.
Rochelle is a 27-year-old Executive Assistant. She purchased her first investment property through Binvested at the age of 24.
Now, she and her fiancé are living with her parents while they build their first home together.
The couple purchased an existing dwelling in order to knock it down and build a duplex. They plan to live in one of the properties and either rent out or sell the other.
This will enable them to have a second investment property as well own their own home.
Rochelle purchased an investment property before a PPOR because she knew it would have been harder to pay back the mortgage without an income.
“I had an interest in getting into property but I wasn’t sure how to start off by myself,” she recalls.
“It was really important to find someone who knew what they were doing and could help me.”
She says Binvested has been like a support team throughout her journey.
She cautions against listening to the opinions of those who aren’t in the position that you would like to be in.
“Don’t be discouraged by family members or friends who may not have the right mentality about property.”
She says it is important to think outside the box and be savvy.
It is also important to find out as much as you can about property investment.
“Don’t be afraid,” she says.
“Knowledge is power.”
SIX STEPS TO BUY YOUR FIRST HOME:
1) Think about exactly what you would like to achieve.
2) Set a specific goal.
3) Attend a MAP session to learn about structuring and finance.
4) Speak with a finance strategist to find out which loans are best for you.
5) Speak with the team at Binvested and devise your strategy.
6) Pull the trigger.
Find out more about your financial health. Book a free discovery session with a qualified professional so you don’t fall short of your goals.