Ways of entering the market

This is just one example of how to enter a market that is changing quicker than you can save for what you would like to purchase outright.

The photos below show a home that was purchased about 15 years ago by a young couple, and a small renovation took place to jazz up the kitchen and lounge/deck to make day to day living more comfortable.  This part of the new renovation will remain in place and heaps of lifting, nailing, banging will take place to the older part of the house to bring it up to the latest standards plus make room for the three additions to the brood. So this family bought something that would suffice for the time being and enable them to get into the market. Why?

• They got into the market 15 years earlier when prices were more affordable.
• The mortgage payments (monthly rent) went into the home for 15 years in a preferred area.
• The amount of capital value now has increased heaps during these 15 years.
• Savings have accrued to make an upgrade affordable, plus adding that amount to the capital growth is significant.
• The added bonus is the Government announced a Home Owners Builders Grant just at the right time.

Chapter 7 will expand on these possibilities.