Owning a home and having a family is the goal for most people, but going out and buying a PPOR could be the biggest mistake of your life.
Of course, investing in property is not a mistake, but when you get stuck paying off a 30-year owner occupier mortgage, you can easily get find yourself getting nowhere.
Over time people’s wages rise, but instead of using the money to invest in property, they will upgrade their PPOR or spend the money on other things in a bid to keep up with the Joneses.
This is a trap and it’s why people end up with all their money tied up in the home, but they have no way to access it and too much pride to sell it down.
So what can you do about?
Take the time to think about where your money is going and if it could be better served building an investment portfolio?
That might mean cutting back on the ever-increasing expenses, downgrading your home or dare I say it even renting.
If your goal is an early retirement, paying down an ever increasing 30-year mortgage is not going to get most people there unless they can make some big life changes.
Engaging a trusted buyers advocate through Henderson’s buyers advocacy service is your best chance at navigating the competitive real estate market.
