Applying for a mortgage for your first home is scary.
You’ve been saving your deposit forever.
You’ve prepared the paperwork and sent it to the lender.
Your fate is in their hands.
So many aspects can lead to rejection.
That’s what Tom and Sally discovered.
They rented while saving to buy their first property.
They thought a few years of renting and saving would set them up perfectly to buy their first property.
For over three years, they made every rent payment on time.
They were model tenants.
But one oversight halted their plans.
The couple decided to treat themselves to a holiday in January.
Sadly, they forgot to transfer their rent money from their savings into the main account.
The money came out of the account on Monday and made it overdrawn.
Their rent went into default.
They resolved the issue when they got back home.
But, when they wanted pre-approval on their first home loan, the lender said no.
They cited poor rental conduct.
Luckily for Tom and Sally, they managed to resolve the issue.
But not everyone has such an understanding lender.
Their story shows that you have to account for every little detail when applying for a mortgage.
Lenders check every aspect of your history.
Something as small as a single missed payment could ruin your plans.
We want to ensure that this doesn’t happen to you.
And to do that, we aim to make it as easy as possible to get your first mortgage.
We’ll show you more about the grants that are available to you and how to get your first property faster.
Join our First Home Buyer Facebook community to learn more about the framework
https://www.facebook.com/groups/firsthomefirstinvestment/
Can you really predict the future growth of a suburb you’re considering?
You may not be able to predict the future, but you can look at certain indicators to get an idea.
Look to the past to get an idea about area growth over the years.
A capital growth for the suburb that is equal or better than the city’s average is a good start.
Also, don’t forget to research all the factors that can impact your property’s future capital growth.
Things like:
Pricing pressure from suburbs closer to the CBD
Growing income in the area, which indicates gentrification
Low vacancy rates and rising rents
New infrastructure
School catchment zones
One of the most common causes of capital growth is the ripple effect.
The ripple effect happens when buyer demand and increased property prices causes a “ripple” outward away from the CBD into other suburbs.
This means that buyers who can’t afford the suburb of their choice, because of price increases look to the next-best suburb.
Often this nearby suburb is lower-priced – until the subsequent demand reaches them.
And then the ripple effect pushes into the next suburb, and so on
Join our First Home Buyer Facebook community to learn more about our framework
https://www.facebook.com/groups/firsthomefirstinvestment/
Recently i was on a podcast with Mike Mortlock from MCG Quantity Surveyors. We chat about my approach to property investing, such as buying under market, renovating to increase equity and purchasing based on growth.
Recently I was interviewed for a series for mortgage brokers. Everyone comes to their chosen path from different places and you might find my journey of interest – who would have thought explosives to mortgage broking
Click here to Listen to the Interview
Approximately 30% of Australians live in rental properties.
Mainly because many people struggle to afford to buy where they want to live.
But things have changed, with just a 5% deposit and in most cases a reduced or even no Stamp duty it can be cheaper than you think to buy.
Here are 3 reasons why buying now makes sense.
1. If you buy in an area that is growing in value, then you are building equity in your property and wealth for your future.
2. At the right time, you can access this equity for other major purchases.
Plus, it can act as an emergency fund to help you if you find yourself in a bind.
3. When you rent, all the money you spent goes to an investor.
That means you’re not building your own savings through equity, what you need to do to achieve what you want in life.
Yes, we’ve seen price declines in several major cities, but they are now rebounding.
Those declines come on the back of several years of huge growth.
And over the long term, your property is much more likely to grow in value.
However the key is to buy in the right location at the right time.
Anyone who’s rented before knows how restrictive it can be.
You should have the freedom to do what you want in your own home.
That freedom comes from buying.
You’re creating a more stable environment for yourself that you have full control over.
The problem is that so many young Australians feel like they can’t buy that first property.
But we can help you to access the Grants and Stamp Duty Concessions your entitled to.
That will help you find the property that you want, and even where you want, without all the costs you might expect.
And if you follow our five-step framework, you can be a homeowner. Join our First Home Buyers community https://www.facebook.com/groups/firsthomefirstinvestment /
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