How To Save For A Home Loan!
One of the biggest issues facing the investor today is the problem of a financial portfolio not growing as fast as they want or need them to. Poor financial growth can stunt your future investments.
There may be many reasons for this lack of growth – it can range from things like a bad investment choice, through to someone with a conservative investment style and not seeing much growth. The thing is, if you walked up and asked anyone who has had great success with investing what they think the most important part of their whole portfolio was, you would be surprised if most people didn’t say property.
Owning your own property is part of the great Australian dream, but is something that sadly is evading many young Australians today, due to ever-higher house prices, and higher interest rates. That said, interest rates are currently at an all-time low so now is a great time to buy if you can! Consult with Homestart home loans for first time buyers for great advice.
So what is it that makes property such a great investment? It is, after all, the darling of the Australian investors community, and something that has always enjoyed great popularity. There are many reasons for this and we will outline some below:
• Property is a stable investment! After all people will always need somewhere to live and somewhere to call home. As a property investor you are capitalising on people’s need to feel secure, and just as renters will always need homes, so too will your investment always be needed!
• Property is fairly stable in financial terms too. In terms of economic downturn we saw that even when the global financial crisis hit, property remained something that still experienced some growth.
• It is not as volatile as stocks, and the value of a home can never technically be zero ,where as with the stocks or shares the value can fall to zero and be worth nothing at all.
• Property is secure, because you can reach out and touch it! Sadly, you can’t reach out and touch your stocks and shares, but with a house it is bricks and mortar, and so it is sometimes a more comfortable investment for people with averse investor profile who want to see where their money is going.
So now that we have covered the basics of why property is a good investment, we need to start looking at how you – the potential investor – can start saving for your new home! You need to think about what you can do in your life to reduce your costs overall, and then think about a way that you can channel that money into a high interest savings account or other investment!
If you find that at the end of the pay week that you have not a lot left, then think about taking the money out at the start of the week and putting it somewhere where it can’t be touched! That way, temptation can’t get the better of you on a Friday night when you’re going out with friends and want to buy an extra bottle of wine (or two!). In all seriousness, much of the money that you could be using to save for a house often gets frittered away on things of no consequence! Sad but true. If you make a budget – and stick to it – you will soon see that your money is piling up in your bank account! It’s quite a good feeling.
If you are really struggling to save the last few bits of money why not think about how you can get the money from somewhere else? Think about taking on another job or getting a loan from parents if you can. The sooner you can buy the better!