Making the FHLDS Work for You

Are you ready to apply for the (FHLDS)? Successful applicants only need to pay a 5% deposit for their first homes. And they don’t have to pay any Lender’s Mortgage Insurance (LMI).

That means a savings of thousands of dollars on the deposit – and then thousands more on LMI!

But you must act fast.

So let’s say you succeed in your application…

Investors Choice Mortgages can help you get your foot on the property ladder. Through our framework, you’ll have your first property in 12 months.

And then you’ll be out of it within a year, after turning it into an investment property.

It will act as the launching point for a strategy that will give you the financial freedom you’ve always craved.

The FHLDS helps you set it up.

But once you’ve done that, you’ve got to source it.

You need the typical property in the right location. And in our next few emails, we’re going to dive deep into what the right location looks like.

But if you can’t wait to get started, jump straight into our community to find out how we can help you First House Buyer Group and find more information about the FHLDS on our website http://firsthousebuyer.com.au/

First Time Buyers Struggle to Qualify for a Loan

Many first-time buyers struggle to qualify for a loan. You’ve probably never had to borrow so much money before. And every lender wants to minimise their risk, which means they’re going to take a close look at your finances.

These 5 things will increase your chances of getting a loan:

1. Lenders want to see that you’ve saved your deposit yourself.
Unless you are lucky enough to have cash, you need to start getting started sooner rather than later.

2. Lenders usually look at the last three to six months of savings statements.
You must show consistent saving towards the deposit

3. BUT, if you’re renting right now, you might be in luck.
Some lenders consider your rent payments as part of your savings!

4. They also require you to declare all your expenses, and that means every regular expense. So get rid of that netflix, magazine subscription or gym membership if you are not using it.

5. Your credit score has a huge impact on your chances of approval. Every lender looks at it, which means you need to know what your credit file looks like.

Go to http://mycreditfile.com.au/ to grab a copy of your credit file or contact Investors Choice Mortgages

and we will get you a copy as part of what we do to assess how the lenders will assess your loan application

#firsthome

Bank of Mum and Dad

Bank of Mum and Dad – are your parents thinking about helping out with a parental guarantee?

There are 3 things you (and they) need to know.

1. The bank doesn’t take security of your entire parents property.

A parental guarantee allows you to use a portion of your parents’ property as additional security that supports your home loan. Say you want to buy a $500,000 property, and you don’t have a deposit but you have the income to afford the loan.

Your parents can add a portion ie a limited guarantee of $100,000 of their property to support the application. Essentially the lender is getting $600,000 of security with a $500,000 loan.

That makes the bank happy and you are happy too as you don’t have to pay Lenders Mortgage Insurance because you have less than a 20% deposit, the additional security can also cover your stamp duty costs and you can get into the property sooner with little cash.

2.There are risks.

If you default on the loan, your parents could suffer. The bank will come after the property they put up as security on the loan (after they come after yours).

So they need to be aware of the risks. The good news is that as soon as your property has grown in value, you can ‘release’ their property and you are on your own.

3. You still have to pay.

You have to make repayments on the entire amount borrowed. So do your numbers be confident you can handle the repayments before you go down this route.

No doubt about it, It will get you into the property market faster however you need to be guided on how to set this up right and how to buy right so you can release your parents property sooner. If you want to get set up right and discuss parental guarantees then,

Investors Choice Mortgages can help uncomplicate the process and help you on your journey. Make a time with us to discuss how we can help https://investorschoice.com.au/bookatime

First Home Buyers are able to save $60,000!!

If you have ever thought about buying a home you may not be aware that there is an amazing opportunity for the first few thousand people who have their ducks in a row to be able to save $60,000!!!

I know it seems too good to be true, and it is, because it’s on a first come first serve basis.

But those who act quickly and are ready on the 1/1/2020, could get on the property ladder for much less than you even thought !!!

As 10,000 first-home buyers will be assisted by the government, enabling them to proceed with their home purchase with deposits of as little as 5%.

Our 5-step Financial Freedom Framework will help you get your foot on the property ladder and navigate the often confusing path.

The First Home Financial Freedom Framework turns the traditional life model on its head.

The Traditional Model: a career, partner, first home, kids then being stuck with high living expenses only to realise in your 40s-50s you don’t have enough for retirement.

Then, often a risky investment decision, with only 10-15 years to achieve a result.

The New Model:

1. Buy your first house (not a unit) strategically, taking advantage of all the money the government and lenders are throwing at first home buyers.

2. Buy a well positioned house (not new), in an area with good growth and live in it for 6-12mths.

2. And then you’ll move out of it turning it into an investment property

That is it! Now get on with life, your career, partner, kids, and home knowing that this property will act as a launching point for your financial freedom.

It will have 20-30+years of capital growth and you will have not only a property that will pay for itself in the future

but give you the lifestyle you desire and deserve without worry or risky decisions trying to catch-up.

That’s the whole point of the First Home Financial Freedom Framework:

#See It,
#Set It,
#Source It,
#Slam It,
#Stash It.

It’s is our 5 step approach to making that first buying decision easy knowing you are setting yourself up now for a comfortable future.

The First Home Loan Deposit Scheme, First Home Buyers Grants and Stamp Duty concessions are virtually free money being thrown at you,

allowing you up to $60,000 on your purchase.

We will help you get that first property sooner than you ever thought was possible.

Can’t wait to get started?

Make a time to talk to one of our first home buyer mortgage experts to find out just how far away you are to setting up your future now https://calendly.com/icm-discovery-call/fhb

Episode 10 of The First Home Buyers Show – Wrapping up with a bow on top

We had a look at the financial freedom framework!

Episode 10 of The First Home Buyers Show – Wrapping up with a bow on top

Now the financial freedom framework is made up of five segments and that’s around seeing it, creating that vision so you know exactly what the property needs to do for you and how long you want to hold the property.

We’re not talking 10, 15, 20 years… We’re talking 1 to 3 years. Understanding right now what you need to be looking for and how and what that property is going to do for you. Then we move on to #SetIt.

You need to make sure that you can get a loan. So, making sure the loan suits the strategy that you’re going to use and also making sure that you can afford it and seeing how lenders are going to access you.

For instance, you might find that you have a credit hit on your file that is not something that the lenders want. You need to know that ahead of the game. So, having an understanding of how much a property’s going to cost you as well so that you don’t have to eat mince every night is something that you need to do in this segment, which is #SetIt.

Then you move to #SourceIt. I love finding properties! I love sharing my knowledge on how people can find properties that are going to go up in value. So, it’s about understanding the Ripple Effect.

It’s about understanding how some suburbs will out-perform others based on population growth, based on income growth, based on demand, based on the type of property and the location of the property. So, this is always a very exciting thing to look at.

Understanding strategically where to buy so that your property goes up in value. And then we move to #SlamIt. And this is about negotiation.

In my Trid3nt Strategy I have three ways of making money. Negotiation is one of them, buying below the market, you’re making money upfront.

Now, in a fast-moving market, it’s not always easy to do this, but it is possible, definitely! So negotiation is absolutely something you need to do.

Then you have to have your pest and building inspection done. You have to have your contract reviewed. You need to make sure that you got everything set up before you sign on the dotted line and you take possession of your first home.

And we talked about #StashIt. Now depending on how you are going to use your first home, this could take up different ways. So, you might have your first home that you live in for three to five years, sell it, and then buy your next home. So, it’s like home hopping.

Now if you do that, then you want to make sure that by the time you come to sell it, you have as much equity or growth in that property. Imagine having $200,000, $300,000, $400,000 dollars more in your bank by being strategic about where you bought your property. You might be a first-time buyer that says, you know what? I want to be a “homevestor”.

A homevestor is someone who buys a home, uses all their grants and all the benefits that they can get to buy strategically in the right area, and depending on the stake, they move out within 3, 6, 12 months, depending on the stake. And when they move out, they convert it into an investment property.

They become a rentvestor. They start as a homevestor, they become a rentvestor. Now there are some things that you need to do when you do that. You need to get a valuer in, so your capital gains tax is under control.

You might want to put in a tax variation in, talk to your accountant. You might need to have a quantity surveyor come through, so you have all the deductions that you need.

You need to have a property manager and there’s property managers that are either traditional bricks and mortar or some of the new startups that can actually do this remotely for you at a cheaper price. So there’s all the things to understand.

Now I also shared my 6th secret segment of the financial freedom framework, and that is #SupersizeIt.

This is part of my Trid3nt Strategy! Three ways to making money:

1. Buying under the market.
2. Buying in a good growth area to make more money in the long term.
3. But then also supersizing it with renovation.

Now I talked to you about how to make $2 for every $1 spent in episode eight of the First Home Buyers Show. It is possible for you whilst you are living in that property to boost up the value, but you have to be in not just the right property to do that, but you have to be in the right suburb. And that’s about knowing the suburb pricing disparity between unrenovated and renovated properties.

As you can see, in this speedy recap, we covered so many things about the financial freedom framework. It has been an absolute honour and a blessing to be part of this group and sharing with you.

I really suggest that you head over to the First House Buyer group in Facebook and join the conversation there, where we’re going to continue adding value and sharing all of the tips and tricks that can assist you as a first house buyer.

All the best to everyone. I really appreciate all the time and effort that you guys have put in to being part of the First Time Buyers Show!!

Watch the full SHOW here
https://www.investorschoice.com.au/FHBSEp10

Type ‘REMIND’ on the post of the full video to get a copy of ‘The Australian Guide to First Home Buyers Grants”

And Join our First Home Buyer community
https://www.facebook.com/groups/firsthomefirstinvestment/

Click here to see all the episodes > First Home Buyer Show Playlist