Gearing Unpacked with Jane Slack-Smth

Check out my interview with Real Estate Talks  – I discuss my Financial Freedom Framework for First Home Buyers (and any buyer hoping to buy well) and a quick explanation about negative and positive gearing.

Click to Listen to the Interview

If you would like to listen to the First Home Buyers Show then check that out here https://www.youtube.com/playlist?list=PL_B92b8b8IRilaYGUJSP9WdYIVTHi2GbX

 

Property: Is now a good time to buy?

I strongly believe that you should not try and time the market rather buy the typical property in the best area you can afford when you can afford it. However as it is June 2020 things are a little different now and to understand where to buy we need to consider what the future of our property market may look like in the next year or so.

Recently I was asked to share my thoughts with the readers of Canstar, here is that article, click here to access.

 

How much a home office costs to build

Working from home looks set to stay, even after COVID-19 is done for good (if that ever happens).

With the COVID-19 pandemic forcing many businesses to shift to working from home (WFH) temporarily, a good portion of businesses and employees have found they quite like it, and may just keep doing it after the pandemic, at least semi-frequently.

Click here to access the article

 

The Late Payment Problem

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/

What Do You Offer?

It’s time to make an offer on a property you like.

But how much do you offer?

Domain.com.au tracks the percentage difference between the asking price and the sale price. This is called discounting, and worth looking at.

Suburb Reports show discounting by suburb and time on the market.

If the discounting comes in at 0%, it’s a seller’s market and the prices are moving up and they are likely to get the price they are asking. But if it’s 8%, there’s room to negotiate.

If you see 8%, go in with an offer that’s 10% to 12% lower than the asking price.

Your offer may be accepted if the seller’s motivated. But you have wiggle room to negotiate up to an 8% discount. 

That’s the number you expected anyway. 

Of course, all the other numbers have to add up.

Investors Choice Mortgages can help you figure out how to track the market. We’re doing it right now for a bunch of first-time buyers who want to become investors. Make a time with one of our experts https://investorschoice.com.au/bookacall