Choices are getting difficult.
For the moment at least, choices are getting harder to make. If you’re trying to keep up with property prices by working harder and saving more, you’re currently fighting a losing battle. Right now, you’d be flat our keeping pace let alone getting ahead.
Saving for a new home is always going to be hard when property is increasing in value by around $1,000 per week. Even if you do so, much of your efforts would be in vain. At $1,000 per week, naturally, it’s only 10 weeks and you’ll be paying $10,000 more for your property. A recent Brisbane property being considered by a client increased in value to the tune of $90,000 in just two weeks. When we looked at it, it was valued at $605K. On the day we viewed it offers were going in at around $670K. Two weeks later, the book value was $695K. Can you believe that? There was nothing $90,000 extra special about the property.
If you know an easier way to earn $90K in two weeks, please let me in on the secret.
The question here is not so much where do you buy or what do you buy, but when do you buy. In this example, you can work, work and work to get nowhere, or you can get into the market now at what you can afford and let the market do the work for you. We can see here that if you wait at all, you’re going to pay a lot more. Conversely, if you’re in the market, you’re going to earn a lot more…..even while you’re asleep.
The point here? If you want to buy a $700K home, but can only afford $600K, buy a $600K home and live in it. In a year it will be worth $700K. Simple maths. If you don’t buy now, then what you can afford in a year will be a home that’s worth $500K now. The choice? Buy now at what you can afford and ride the growth wave or drop your standards later so you can buy whatever you can afford at that time.
What you buy and where you buy, do also have a bearing on growth rates too by the way. That’s where we come in here at PPBA.
To give you a hand with that, give us a call now:
0490 020 801
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