No one wants to compromise! We get it. We want what we want, when we want it. But in this market, it is tough. Recent surveys showed 40% of Australians expressed their desire to buy a home in the next five years. The research highlighted a 6% increase in investors and and 4% who wanted to expand their house size. These are huge numbers of people headed for the limited houses available to buy. Time is not on anyone’s side, and soon the available options and prices won’t be either.

Where and How Do We Compromise

What is most interesting, is the ABS data tells us that people are willing to compromise, but in strange places. One change observed is that people are willing to make compromises on time spent at home. According to the data, 970,000 Australians are now working two jobs. This trend shows increased creativity around side hustles which help build deposits faster.

Another notable compromise trend is who people are willing to live with. More and more people are looking to buy in family units, whether with siblings, cousins, parents or other non-marital relationships.

The Sacrifice Game

This “sacrifice game” is something we champion here at Teach Me About Property. Whether it’s compromising on who you live with or how many jobs you work, that Wealth Game mindset can change your family’s future. When it comes to purchasing property, the “sacrifice game” always rears its head.

We call it the Property Buying Triangle. Basically, you get three options:

  1. The type of property and location you want (but not a great price)
  2. The location and the price you want (but not necessarily the right type of property)
  3. The price you can afford and the type of property you want (but not in the location you desire)

Not willing to compromise on where you live but still can’t make the numbers work? That’s where strategy and problem solving come in. Compromising on the triangle above is not the only way. The other option is rent-vesting.

Rent-vesting: A Growing Trend

At Teach Me About Property we have also noticed a growing trend of “rent-vesting.” This is where first home buyers are opting to purchase an investment property as their first step onto the property ladder. This forms part of what we like to call the TMAP2STEP, buying what they can afford so they can buy the dream home later.

The rent-vester mindset (and process) is simple: you want to buy a property, you can’t afford the property you want, in the location you want, at the price point you want, so you buy a property that means one or two of these criteria and rent it out to someone happy to live there.

As much as it may be part of the property trends within the Australian property market, the secret to entering the property market sooner is upgrading your sacrifice game. Being willing to compromise and take incremental steps is essential.

For those who are ready to make the sacrifices and strategic decisions, contact us today and you will see capital growth and eventually become upsizers.