Instant.

The keyword of this decade reveals the reality we’ve become accustomed to. We have access to everything at our fingertips, and we want everything yesterday. At the same time, we all know it’s the wrong mentality, particularly when it comes to taking care of our finances and property in the long-term.

When thinking about buying a home, taking the long view will help you decided exactly which property is right for you, and realistically puts your finances into perspective. By getting a clear understanding of what you can achieve, you’re better able to plan and ease the pressure of thinking about it on the fly. A 5-year plan is the sweet spot between an ongoing commitment, and a realistic time frame to keep and eventually reach.

Let’s discuss a few scenarios of 5-year plans:

The First Home Buyer

A millennial couple with their first child on the way want to purchase a spacious home with a backyard but can’t yet afford one. They decide instead to buy two small units as investments, pay off both over the next 5 years, and then use the equity to buy their dream home, paying off their loan with rental income from their two units.

Upgrading for more space

A couple with 2 young teenagers live in a 3 bedroom house, want to upgrade to a 4-bedroom house. They purchase a $250,000 investment property and begin to pay down the mortgage as much as possible. After half a decade, they sell their property for capital gains and use that to buy their dream 4-bedroom house.

Securing Your Retirement

A middle-aged man wants to secure his retirement by acquiring two properties that would yield $1000 a week within 5 years. To achieve this, he purchases 5 investment properties that he holds for 5 years. He then sells 3 to pay off the remaining debt in the two main investments which net him $900 a week. He can now live comfortably off this income. 

With all these scenarios based on true success stories, what’s your own plan? Will you be living your dream in 5 years?