Why over spending on your own home too early can be a bad idea!

Why over spending on your own home too early can be a bad idea!

A few days ago I was listening to my partner talk to one of her friends on the phone. They were talking about their plans for 2014 and how they were thinking about buying a $700,000+ property as their family home. A few days later my partner said a college at her work was considering buying a million dollar unit on the water in QLD with her partner.

The interesting thing about these stories is that both of these young families are still in the first 10 years of their careers, raising or looking to raise young families and still dependent on their day jobs as their primary source of income.

It’s extremely easy to fall into the trap of buying the expensive trophy property now, but what else could you do with the extra interest you’re paying the bank to hold your home?

With the market conditions currently available to young investors it may be worth delaying the purchase of your trophy home, accumulating a property portfolio and selling a few of these to buy your dream home at a more strategic time.

The information provided in this blog is of a general nature only and in no way constitutes legal or professional advice, or specific advice in relation to any finance. In all cases we recommend you receive professional financial advice for your own personal circumstances.

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.