6 Ways To Get On The Property Ladder Faster
With a booming property market, it can sometimes feel impossible to achieve that dream of purchasing your first home.
As prices soar, many aspiring buyers feel their hopes of getting a leg up on the property ladder move further and further away. By conventional measures, it can seem like you’re banging your head against a brick wall – but if you’re willing to think a little further outside the box, you might just find a new way to stack the deck in your favour.
Here are six practical ways you can speed up your ability to grab a slice of your very own real estate gold:
1 – GRANTS AND CONCESSIONS
One of the best ways you can accelerate your ability to jump on the property ladder is by making use of other people’s money – eg; your employer and the Government. As soon as you’re eligible to do so, tap into your accessible Kiwi Saver and put it towards a deposit for your first property. If you’re not quite there yet, use the next year or so to up your contributions to help speed things along.
2 – PENNY PINCHING
Look, I’ll admit this one isn’t a crowd favourite but moving quickly towards your property goals does mean making some cut-backs, sticking to a budget and participating in a savings plan. In the world of instant gratification, this can be tough but like any big achievement, it will be well worth it!
3 – THE WORK SMARTER SIDE HUSTLE
There’s no better equation than to save more, spend less AND increase your income. If you have a level of entrepreneurial flare and the time and means to start a smart hustle on the side, then go for gold! A few hundred dollars here and there adds up…FAST and can sometimes be the defining factor of you purchasing a property sooner rather than later.
4 – EQUITY FROM FAMILY
Depending on your circumstances and family dynamic, there may be an opportunity to use equity from your parents or other relatives to help get you into your first place. There’s no doubt that this is a big discussion. Whether it’s a gifted deposit, loan or the use of equity – you’ll need to be sure that all your I’s are dotted, and T’s are crossed with some clear-cut legal documentation, so everyone knows where they stand now and in the future.
5 – A PROPERTY JOINT-VENTURE
Same as above. Joining forces with a friend or co-investor needs to be structured correctly with the right legalities in place. However, if you do find someone who is just as driven, goal orientated and on par with your goals for the future, this could be a great way to move ahead and gather momentum on your path to wealth creation.
6 – BECOME A RENT-VESTOR
A rent-vestor is a property investor who generally chooses to buy outside of the suburb where they live. It simply gives you the option to buy in a location that, while performs well in its own right, may not be exactly where you want to live personally.
It’s a great way to save money as you’re able to pay your mortgage down from the income you’re generating by letting out your place, while you rent somewhere else – for instance at home with family or in a share-house with friends.
FREE TIPS FOR FIRST-TIME BUYERS
There are many creative ways to embark on your journey, and the first purchase could easily be the most important. Knowing exactly what strategies to use and how to choose the best property that will sustain you for years to come is incredibly important.
We cover all of this and more in our free real estate seminars – perfect for newcomers who are just figuring out where to start.
Learn from a knowledgeable and experienced team of coaches who have done it all before.
By Sue Irons
CEO – Positive Real Estate New Zealand
Kiwis need to be cautious of buyer’s remorse amid today’s panic buying environment. This comes after a recent online promotion in June, held by a Canterbury developer who gave prospective buyers the chance to reserve one of 116 sections in the town of Rolleston with a $1000 down payment. The sections which were priced competitively, saw a flurry of attention which resulted in the website crashing and a group of frustrated wanna-be-buyers frozen out of the offer.
We hear the screaming headlines all of the time – ‘poor first-home buyers, priced out and unable to buy’. The reality is that’s BS. First-home buyers are absolutely hungry and, in the game, to buy!
While you could easily be confused that this sector of the market is deflated and deterred by New Zealand’s competitive real estate landscape, all indications actually show that first time buyers are not slowing down in their quest to own a slice of Kiwi paradise.
You won’t make money on a property that you don’t buy. Sounds sWhen you’ve got good quality properties, good quality tenants and good quality managers in place to ensure your investment is being looked after well, then owning a property should be relatively straight-forward. Yes – don’t get me wrong, there are risks and there are challenges. There are also times that do require more effort from you as the investor, but all in all if you have a strong strategy in place, more often than not, your portfolio should simply just tick along. And if it doesn’t you could be doing something wrong…imple right? But so many people are put off buying great property for tiny issues that cost them a major opportunity in the long run. I’m here to tell you not to sweat the small stuff when it comes to investing in real estate.
You won’t make money on a property that you don’t buy. Sounds simple right? But so many people are put off buying great property for tiny issues that cost them a major opportunity in the long run. I’m here to tell you not to sweat the small stuff when it comes to investing in real estate.
For some strange reason, bad news sells – especially when it comes to the property market, but I’m here to tell you, don’t always believe what you hear and, be very careful of where your advice is coming from.
Whether you’re aware of it or not, we all have a deep-rooted relationship with money that dictates our ability to create and hold on to wealth.
Often-times it’s a money mindset that started right back in childhood and was inherited by the nearest and dearest around us. Cast your mind back… what were some of the stories surrounding money that you heard growing up?
How Do You Reduce The Risks Of Real Estate? The four fundamentals are Population, Infrastructure, Employment and Quality property. It’s very hard to make a bad decision if you live by them…
To be a successful property investor, you need to learn how to budget like one. Whatever it may be – luxury homes, less work, more holidays – most people know what their dream life looks like, but most have no idea what it’s going to cost or how to start planning to achieve it.
Buying an investment property, or deciding to...
Deciding to invest in real estate is an...