Achieving your property goals in the year to come

Goals are important in keeping us motivated to get to where we want to be. When it comes to property, your goal may be to get a foot on the ladder, grow your portfolio or secure your dream home.

The key to achieving your goals is identifying what they are – making them quantifiable and then putting a plan in place to reach them. Now is a great time to think about your property goals for 2023.

The first home buyer

Entering the property market as a first home buyer can be both exciting and daunting, and it can be hard to save for the initial deposit. However, the government has introduced a number of grants that could help eligible first home buyers.

The investor

Whether you’re new to investing in property or continuing to build on your portfolio, your goals need to take into account your investment strategy – are you wanting to take advantage of negative gearing to generate wealth, ‘rentvesting’ to get onto the property ladder, or are you investing in property to create a passive income stream to help fund retirement.

The upgrader

If buying a larger home is on the cards, these properties are typically more expensive; therefore, you’ll need to factor this in when goal setting and understand how much this will impact your budget - will you need to make any sacrifices to your current lifestyle to service the loan?

Reaching your goals

There are many different approaches when it comes to goal setting. You’ve likely heard of SMART goals, which are Specific, Measurable, Achievable, Relevant and Time-Bound. Vague or general goals like “save a deposit for a house” are harder to achieve and often don’t come to fruition as there is no plan behind them. Using the SMART goals framework forces you to be specific about what you want, have a way to measure and track your progress, ensure that your goal is achievable and relevant to your needs and that is has a timeframe associated with the goal. You can use the SMART framework with each of your goals and then break down the steps required to meet each goal. As you begin setting your property goals, consider how these goals will influence your family’s day-to-day life and your overall personal goals and values, as this can have a big impact on your decision making.

Purchasing considerations

If you’re a first home buyer, you need to identify how much you will be able to borrow, as this will determine how much deposit you will need and whether you’re eligible for any homeowner grants. You should also consider other costs that may be associated with purchasing a home, for example, you will need a conveyancer/solicitor as well as any building or pest inspections that may be required. Plus, there is the additional cost of furnishing the home, so it’s important that you do your homework to understand exactly how much your initial outlay will be. For the investor, you might be working towards a specific amount in passive income you want to generate, or you may want to own a set number of investment properties by a certain age. If you have equity in your current home, you could use that to purchase an investment property, or another consideration is to buy a property off the plan, as these properties can sometimes be less expensive than an established home. It’s also important to factor in the potential rental returns in the area you are looking to buy. Investment properties will also require regular maintenance, so having an emergency fund could be a good idea. The upgrader may have a set floorplan in mind or be looking to move to a new area. Again, you’ll need to factor in how you are going to service the loan if it is higher than your current mortgage repayments, and other costs associated with the upgrade. You’ll more than likely need to purchase additional or different furniture to fill a larger home.

Sticking to your goals

Where we can sometimes lose our way with our goals is by setting a framework that is unrealistic and this is where they may get discarded. If you’ve set goals that are unachievable – especially when it comes to budgeting – it can be challenging to see them through. Perhaps you decided to save for a deposit but are now finding the lifestyle sacrifices are too much. This is where leaning on your support network as a reminder as to your ‘why’ can be helpful. Visualising your goals can also be powerful. While this may sound ‘woo’, imagining yourself in your property – whether it be your first home, getting the keys to your investment property or moving into a bigger house – can keep you motivated. Tracking your progress regularly is also a smart idea, as this will not only keep you working towards your property goal, but it can also help you recognise the small wins and where you might need to adjust your goals. Accountability is also important, which is why we often share our goals with others so that we can feel more motivated to reach them. If you are considering purchasing a property in 2023, the Oracle lending team are here to help so contact us today. Important information – Oracle Advisory Group makes no representation or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. The information in this document is general information only and is not based on the objectives, financial situation or needs of any particular investor. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek their own professional advice. Past performance is not a reliable indicator of future performance. The information provided in the document is current as the time of publication.