Long before you pick up the phone to any lettings agents, you need to ask yourself some big questions: what is my dream lifestyle? How much money do I need from my property to get there? And by when do I want to achieve it?
A clear goal has three elements. It is:
1. Meaningful. To motivate you to action, your goal should state your big ‘why’. For example, you might want to build up a nest egg for retirement far into the future, or you’re starting a business and you need some money in the bank every month. Our ‘why’ was to buy a London house big enough to swing two kids in.
2. Specific. If your goal is too vague, you won’t know when you’ve achieved it – this is where ‘I want to live comfortably’ falls short. You need to quantify how much you want to earn.
3. Timed. Deadlines make all the difference. Are you saving to help your children on to the property ladder in a decade’s time, or to pay their school fees from next year? Your approach for each will be poles apart.
In short, ‘I want a family house’ is a dream; ‘I want £100,000 in equity from my rental flat to buy a bigger family house in three years’ time’ is a goal.