Property Investment Common Mistakes | Basic of Property Investment | Investment Property

November 14th, 2023

Planning major purchases in your 30s and 40s requires strategy regarding timing and priorities. At Empire 8 Property, we often discuss whether clients should buy high-end cars or property first. In this guide, we’ll analyze how to balance lifestyle desires with smart financial growth.

The Allure of Dream Cars

When finances improve, upgrading your flashy vehicle can feel like an enticing reward. Who doesn’t fantasize about cruising in a $80,000 luxury or sports car? However, timing this purchase wrong can jeopardize bigger goals.

While exciting, cars provide fleeting happiness compared to assets appreciating over decades. Don’t let immediate gratification distract from long-term gains.

Buy Assets Before Liabilities

Your home and investment properties are assets that build wealth. A car is a liability that depreciates in value rapidly after purchase. Assets like property should take priority over liability-type extravagances.

The equity in an owned home provides borrowing power to later afford other desires more easily, including vehicle loans.

Maximize Loan Capacity Now

Financing a luxury car often requires substantial loans that eat into your borrowing ability for property. Limiting your home loan capacity by overextending on car payments hinders your capacity to invest and build your portfolio.

Keep leverage open for assets generating returns rather than liabilities costing you money.

Delayed Gratification Pays Off

By putting long-term investing first, everything else follows in time. The patience required pays exponential dividends over decades of compounded portfolio growth. That dream car will still be there down the road.

Stay focused on the big picture by aligning purchases with your overarching wealth goals.

The team at Empire 8 Property helps craft customized roadmaps to balance priorities on your journey. To discuss maximizing your potential, contact us at 0433 213 993 or click here to request a consultation. Let’s chart your path today.