one you’re more likely to enjoy.
Be realistic
Be realistic with your expectations.
I’ll repeat that…
You need to be realistic with your expectations.
If you start with big ideas you’re likely to come
down with a thump!
But if you start from scratch and work your way
up gradually, you’ll meet challenges that can be
overcome bit by bit.
This is a journey that can bring a sense of security, a
roof over your head and the means to a very lucrative financial future.
Make the start
Don’t find all the reasons why you can’t buy a house by blaming
others. Even if you don’t think you’ve had the same opportunities as
others, it’s up to you to make your own opportunities.
You’re re responsible for your won destiny, no one else, and you’re
the only one who can take control of your own life. If you really want to
get to where you’re going don’t be a GUNNA (people who are gunna do
this and gunna do that).
•
Set goals that are short-term, medium-term, and long-term.
•
Write them down and read them every day.
•
But most importantly, act on them. Actually, get them ticked off
the list.
Hang around like-minded people who are go-getters and doers
because it breeds excitement and motivation but - you also need to make
sure you demonstrate a level of surety and optimism so that they don’t
lose interest in you.
Even the moon trip wasn’t a direct route. A great deal of
manipulation, tactical management and strategic manoeuvring was
involved in getting a rocket to the moon. It didn’t travel in a direct line
either.
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The situation was managed by overcoming every challenge
as they arose. When President John F. Kennedy made a
commitment to getting a man on the moon within a stipulated
timeframe the pressure was on to make it happen and they did.
But it wasn’t a straight course; there were a lot of diversions
that took place along the way.
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Conclusion
I credit my hope and determination as the forerunner to building
financial wealth, but I emphasise that it was the challenge of getting into
my first home independently that gave me the most insight into the
obstacles of our social system, knowledge of financial growth and one of
my ultimate senses of achievement (next to my children).
While I do indeed recognise that the current situation with housing in
Australia, New Zealand and for most of the western world may be
difficult, I believe it is not impossible, if you have the ability to think
beyond the glumness and cynicism in the media. After all, if you really
think about it, this kind of negativity is nothing less than non-
constructive and soul-destroying.
Furthermore, I believe there is much more to this than just the high
cost of housing and the doom and gloom pitched by the media.
Over the past forty years housing has seen some innovative changes
in the type of homes and geographical locations, and with those changes
has come the development of infrastructure to accommodate the ever-
growing population. Having said this, the infrastructure takes time to
establish. During that time we may experience peeks and troughs in the
housing market but at its peak the housing pressure cooker can get to
almost bubbling over. That’s when accommodation gets so competitive
it can become cut-throat; the market gets over-excited because of
demand and housing prices soar.
It is a cycle that has happened over and over and is likely to happen
again. But each and every time pessimism erupts at the lack of land
available, the fear that home ownership is an unattainable dream and that
turbulent interest rates will rise again. And yet many people throughout
the last forty years have managed to secure their own home anyway.
Housing will continue to rise in price just as it has in the past and in
doing so will always be considered a high cost.
However, my emphasis has always been on education and the need to
get informed. Without the necessary tool sin place it is very hard to build
your dream brick by brick. In this instance, the most important tool of all
is the willingness to learn while continuing to get educated, to avoid
disparagement by others and to find a pathway and then stick to it.
The present indicates a need for change to the way in which we
approach many of life’s challenges for something long-term! One of
those changes involves the need to save and whether that money is in the
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form of paper, plastic cards or another currency, the same basic format
applies. Going without something in order to build up cash stock is still
the best way of moving towards what you really want.
You’ve got this far in the book and even if you think that a great
proportion of the information is something you probably knew anyway,
it may have confirmed some of your own thinking and prompted you
into actually making the move into doing something about it. In
addition, there may be a few ways mentioned you hadn’t previously
considered, with some remedies that could help you get closer to
achieving home ownership. The bottom line is that you can eventually
get into your own address even when life has dealt you some blows. You
just need to make sure that you keep the dream alive and work at
finding ways and means that will get you there. The key to getting
something you really want is to never give up!
Just remember this, the term ‘safe as houses’ was created for a reason.
It reflects what a house is all about for you the individual, your family
and your finances. So what are you waiting for? Don’t be a gunna - be a
doer and start getting into it.
One last thing, be open to losing sometimes, don’t expect everything
to be peachy-keen and run smoothly all the time. Whether the problems
are with the structure of your finance or structural problems with your
house, you can deal with those issues as they arise, always keeping in the
back of your mind that this is a great expedition in search of knowledge.
Maintain your confidence, knowing you can do it all again if you have
to. Each new start comes with a whole new wealth of experience and
knowledge that you didn’t have when you started so you’re more in tune
with what to do next time.
I wish you the very best in getting your own home and hope this is
the start of a wonderfully secure future.
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Recommended reading
When you do achieve the dream of owning your own house and you
want to use that equity to its best potential, I would recommend you read
any of the Jan Somers books. I found one of her books when it was
about to be thrown out in a garage sale. The book was about 12 years old
and hadn’t been read by its owner, but when I started reading it I
couldn’t put it down. After reading her very first edition of Wealth from
Residential
Property. 6 I went straight out and bought my third and fourth
properties and haven’t stopped buying since.
6 Jan Somers, More Wealth from Residential Property, Building Wealth Story by Story
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Questions I have been asked
These are some of the questions asked in the 1,000s of emails and
letters I received, and my answers to them.
What was your proudest achievement with the properties you
bought?
Getting the first one gave me a feeling of real joy. But later when I
independently bought two more properties, I felt absolutely euphoric
because everyone kept telling me it couldn’t be done. I still have those
properties, now worth three times what I paid.
Did you get some Government assistance when you bought those
properties?
No, when I bought them I wasn’t entitled to the First Home Owners
Grant, the Baby Bonus or any other assistance.
Did you have any other loans to help you get into your first
home?
I didn’t have a credit card or personal loan because I couldn’t get
any form of credit from a bank, building society or money lender. As a
single mum on a pension with very little savings I wasn’t viewed as a
good applicant.
Where were you at in life when you bought your very first
independently owned property?
I was living on a ‘Parenting Payment’ (welfare payment), working
part-time and studying. It was bloody hard but worth it because in the
scheme of things it was for a very short time.
How did you get enough money together for a deposit, fees and
charges?
Initially, I cut my expenditure to the bone. I accounted for every cent
that went in and out, didn’t have a mobile phone and walked to save on
petrol. I made sure that a few dollars was taken out every week to cover
the electricity and phone bill but calculated each and every bit of usage
so I knew what to expect.
I also made extra portions when cooking so that it could be frozen
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and I didn’t waste anything. I shopped at secondhand stores for clothing
and home goods.
Did you ever waste money and wish you hadn’t?
Oh, gosh, yes! After my divorce settlement I blew all the money left
over on material ‘wants’ such as clothes, hair extensions (which lasted
less than a week) and things for the kids.
My spending was out of control until the money was very quickly
gone. I had been without for so long that I literally went mad. I hadn’t
had the education on the way to make that money grow. I was living for
today without thinking about tomorrow. I cringe when I think about how
that undisciplined waste affected us financially for years to come and
what I should have and could have done with the money.
The bank that needs something much more
precious than money is the “Goodwill Bank’.
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Document Outline
Preface
Introduction
Who is Tracy Harvey?
Starting at the end What's So Bad About Renting?
Homelessness
Some common statements made by people who didn't own their own home
What a home Can do for you So why does it seem so hard to get into a home right now?
Overcoming the doom and gloom associated with home ownership
The dreaded interest rate rise Picking the right property
Price
The dream home
Let’s get excited, baby!
Missing the boat
What do I need to do?
Investment property requirements
What is mortgage insurance?
If I did use this strategy… What sort of investment property would I buy?
Where do I invest?
What else do I absolutely need to know about home occupier versus investment property?
Saving How to Save, Save, Save!
Fly buys
The baby bonus
Free water
Facing Your Demons Excerpt
Confront your debts…
Don’t hide from your creditors
Paying for all of your tomorrows
What is an income stream?
Time to save, save, save! Start to stash the cash
Why it is so important to get into your own home then build from your investment Why is now such a critical time?2
Story Time One-legged Warren4
The action list for getting a loan Find out how much you can borrow and what type of loan fits you!
The home loan maze
The 100% lend for your home
What other loans will help me?
Loan sharks warning
Type of loans that can help you into your first home
Low and no deposit loans
No deposit loans
Equity releases loans or reverses mortgages
Credit impaired loans
&nbs
p; A shared equity loan
Fixed rate loans
Loan amount warning
Pre-Approval
Story Time Impressing can mean Regressing
Getting into the real estate market with friends or relatives Mum and Dad’s house
Can I get my inheritance early, please!
Gift giving
Buying from your landlord
Other parties
Another future positive
From separation to divorce: building a positive financial future for you and your children What are you going to do with your settlement money?
The 10 stages of separation - after the crying
Child support
Wake-up call
Story Time Ode to Gay
Why being a good tenant can help you into your own home Good tenants
The dream tenant
Problematic tenant
Capital gains tax Why you need to know about it
What is capital gains tax
Story time The two trolley boys
Body corporates What is a body corporate?
A boundary timber fence
The Australian first home owners grant What is it?
So what is the eligibility criteria?
What's wrong with the first home owners grant?
What governments can do to assist
Getting back to basics Consumerism
The me generation
Disadvantaged doesn't have to mean Dispiriting Why you need to know about inflation when it comes to getting a house
Mistakes you can make in real estate but learn from... Wrong move
What not to do at the point of sale
First home must do's...
Insurance
Summing up Before-tax dollars versus after-tax dollars
Not getting legal advice
Providing a roof over your head
Be realistic
Make the start
Conclusion Recommended reading
Goodbye Renting Page 21