What to do if you’re starting over on the property ladder.
There’s nothing like the comfort of owning your own home - or the shock of losing it when the unexpected happens and things change. Don’t panic – you’re not alone. There could be many reasons why you’re faced with starting over on the property ladder: A relationship break up, keeping your business afloat or just needing urgent savings for something else. Whatever the reason, don’t buy into the belief that your dream of home ownership is over. It’s not.
Plan to get back on track as soon as possible by starting to save for your house deposit. You'll need to get an investment together whether it's a savings account, term deposit or managed fund. Here’s three things to consider if you’re going back to square one and starting again.
1. Is time on your side?
No one can predict what’s happening with the housing market – but you can decide how much time you have to save and where to put your money. The longer you can leave your money in your investment the greater the opportunity it has to grow. The main thing is to plan now so you can start to save for your next home while you wait for the right time to move.
2. Is affordability important?
If a breakup has put a dent in your income or the economic downturn has made future earnings more uncertain you might want some flexibility on how much and how often you put money aside. Look for an investment solution that gives you freedom to choose your contribution. It’ll help you feel comfortable you can commit to a plan and stick with it. Remember even if you’re putting aside small amounts, investing regularly can make a big difference to reaching your goal of owning your home again.
3. Is accessibility important?
Saving for a house is your number one goal but things might still be up in the air a bit financially. In changing times, it’s good to know you can access your money if you need it if anything changes. Look for features in an investment option such as ability to take your money out early without penalties for added flexibility.
If you’re looking to get back on track with your savings, we think investing with our Managed Funds is a great way to start as long-term, managed funds usually generate greater returns than term deposits.
Click here if you’d like to learn more about Kiwi Wealth’s Managed Funds.