While the problem of housing affordability has been a hot topic in recent times, I’d like to share with you one solution that I’ve been helping home buyers with since 2010.
Working as a mortgage broker and real estate agent during the past 27 years, I’ve met many people who believed they couldn’t afford to buy a home. But when we sat down together and examined their spending habits, we often discovered they could easily afford their own home… if they were prepared to make a few simple changes to their discretionary spending.
You see, humans aren’t always rational creatures. Sometimes highly intelligent people make dumb financial decisions that could prevent them from ever owning a home.
Let’s take smoking for example. According to Quit Victoria, someone smoking a pack of 20 cigarettes a day is wasting around $154 a week or $8,000 a year. For a couple with similar smoking habits, that’s a massive $308 a week or $16,000 a year.
And, it’s about to get significantly more expensive. On 1st September 2017, the Federal Government will start ratcheting up tobacco excise rates and by September 2020 this couple will be blowing around $560 a week on cancer sticks.
After 25 years they will have burned around $730,000 and all they’ll have to show for it is lung cancer or emphysema!
They’ll probably also waste a similar sum of money on rent (which their landlord will wisely use to pay off his/her own mortgage).
How crazy is that? Almost $1.5 MILLION spent, yet they won’t even own a brick, a floor tile or a kitchen sink!!
That same amount of money could pay two $400,000 mortgages off over 25 years (assuming an interest rate of 5.5% p.a).
They could own their home and an investment property outright, with a combined value of $3 million (assuming both homes were bought for $450,000 each and they achieved a modest capital growth rate of just 5% p.a).
Of course, not everyone smokes. But many people could still save hundreds of dollars a month by reducing the frequency of dining out and takeaways, fancy coffees, gambling, alcohol consumption, lavish holidays and buying used cars instead of new.
Now what if you combined some of these money saving suggestions with a brilliant home ownership strategy?
Would you be excited to learn how you could live in a brand new home and have someone else paying up to 60% of the mortgage payments for you?
To find out how, read Housing Affordability Solution.
© Brian White – This article courtesy of https://www.brisbaneunitsales.com.au The article may be reproduced provided the above courtesy notice and author name remain intact.