Ok, so it’s 2018 and there’s that nagging feeling in the back of your mind telling you to think about your financial goals for this year… but what are they?
Lots of your friends are giving up the fancy breakfasts to start buying apartments or (if they go out far enough) houses, and you know this is something you want to achieve too, but it takes so much planning and, well, a tonne of money too.
Buying property seems like a real stretch goal that’s just out of reach, and ‘mortgage’ can sound like a dirty word. I mean, does working every day and cutting down spending to pay for a large debt sound like your thing?
Does this sound all too familiar?
Giving up a nice lifestyle seems to be the accepted trade-off for being a responsible adult…
But, what if you don’t want to do this? Is there an alternative?
How might you start working towards your financial goals this year without trading in all of your lifestyle and smashed avo on toast?
It’s the new year. Is now the time to act to start trying to reach those financial goals? Yes, it can be tricky and a bit of a downer, but there are actually more options than you may think.
Almost all millennials are saving for something
Have you seen the recent research from, Westpac’s study on housing affordability1 and the HSBC Beyond Bricks study2?
It shows that Millennials are actually some of the most committed to saving and long-term financial planning, despite being frequently labelled as materialistic, spoiled and imbued with a sense of entitlement (not to mention the whole smashed avo thing!).
What appears to be happening is that you’ve been told by people like your parents that spending is bad and saving is good, and this has rubbed off as the go-to response to making a contribution for ‘the greater good’.
Plus, you’re seeing a rising cost of living for the things you really want to do and property prices are off the scale.. By saving, you’re creating a buffer, should you need it in the future.
This is all well and good… but…
Having a bit of savings is the first step towards those financial goals, but could that money be used differently to get you exposure to the property market? As you probably know, housing deposits tend to be around a whole year’s worth of your wage! Plus, it’s disheartening thinking you have to trade virtually the whole lot in, only to receive a mortgage debt that will then cost you hundreds (if not thousands) a month.
There’s now another way to get exposure to the property market with less strain on your quality of life.
A new financial strategy for a new year
What’s traditionally been one of the main financial reasons for buying property in Australia?
The potential for capital returns.
It’s how your parents’ generation has done so well with real estate over the years. In summary, capital return is the increase or decrease in purchase value between when you buy an apartment or house, versus when you eventually sell in the future. The ultimate goal of putting your money towards a house or an apartment is so that you can slowly pay down your loan, while it grows in market value, so that, in a few years’ time, you can sell it for more than you bought it, and use the capital return to buy something else. Of course, it should be remembered that the value of property can fall as well as rise.
Seems pretty straight forward… that is, if you can afford the initial outlay and ongoing interest repayments. Therein lies the challenge.
So, how can you hope to access such a market, without breaking your bank? With BRICKX.
BrickX: A new way for millennials
BRICKX provides a revolutionary new way to get access to the property market, while allowing you to invest only what you feel comfortable spending. This means you can allocate your budget for that café latte with fancy egg and avo combo, while being a responsible adult too!
It works by offering you the ability to buy ‘Bricks’, for as little as a few hundred dollars. BRICKX properties are each put into an individual trust and split into 10,000 units or what we like to call “Bricks”. Our investors may then earn Capital Returns and Monthly Net Rental Income relative to the number of Bricks owned. Bricks can then be easily listed for sale online whenever you choose.
You can also easily diversify your BRICKX portfolio across a whole range of properties in different regions of Australia- it’s completely up to you.
This means you can use your savings to access the property market, remain in control, and satisfy that nagging voice by working towards some of your financial goals this year without completely sacrificing your standard of living.
