This is the story of the 3 little pigs who wanted to own a property of their own.

The first little pig was very careful with her money and she was surprised when the piggy bank said…….’We can lend you plenty because you have been a good little pig and saved well. In fact we can lend you twice as much as you need to buy that straw house. You can afford a big 2 storey brick house’.

But she was a wise little pig and wanted to start her property investing wisely so she borrowed just enough to get into the small straw house and have enough money left over to install a good security system to keep the wolves from the door. She knew that she could improve the house over time as she needed and as she could afford to do so.

The second little pig went to the same piggy bank and was told the same story. He went the whole hog and chose to take the opportunity to buy the big house and borrow as much as he could.

After time there was a crisis and all the piggy banks started to get tougher and work was hard to get. The stress and worry got to the second pig and it affected his job, his marriage and his health. In the end he lost his job and his house. Too much stress.

The third little pig, seeing all this happen, decided to stay at home and rent. He in fact never bought a home and lived happily ever after.

We want it all and we want it now. That seem to be the mentality of new home buyers now and it is such a foolish desire. Keeping up with the Jones’s has taken on a whole new meaning.

In a report released by SQM Research, the banks have clearly decided to increase the availability of finance to buy bigger houses. All for major banks have now lifted their loan to value ratio to 95% saying they are willing once again to accept only 5% deposit from first home buyers. A big temptation for borrowers to borrow more and buy bigger houses.

Smart young investors are thinking long term and are content to start at an affordable level, even adding the finishing touches years after they move in and being content to have the house grow with them as funds allow. Even smarter investors look for an enty into the property market by staying at home, investing in a property and renting it out while building equity.

When asked about his experience, the second little pig said ‘I thought the bank wouldn’t lend me money if I couldn’t afford it’.

Pigs might fly too!