I have heard friend tell me that they have just spotted their dream property. It was located in the ideal neighborhood, close to amenities, conveniently located, had spectacular views of skylines and highly assessable via major roads or public transport. There was only one problem; they couldn’t afford the asking price.
They told me that they would keep that in view and try to save up for the down payment. Maybe after a year or 2 of additional savings, they will be able to afford it.
Would you do the same if you were in their shoes?
In fact, I offer a simple strategy that you could use to afford to buy that dream property.
The key is to find properties that you can comfortably afford to invest in. These properties should provide high potential capital appreciation, easily rented out with a high yield.
Over a period of time, the investment grade property that you bought should in theory experience a price rise in tandem with the costlier property that you couldn’t afford years earlier.
This way, you have locked-in the price differences of that dream property. And once you have saved up the difference, you can always sell the current property and upgrade to your dream home!