Property Review Video – August 2023
Stay up to date with the latest developments in the property market over the past month. Our video takes you through an overview of the state of...
The speedy recap is, what did I learn from being an explosives engineer that helped me build a multimillion dollar property portfolio, and help thousands of people over the last 15 years, do the same throughout Australia?
Well, I looked at risk. I started with my trident strategy, three ways to make money with any property.
Episode 7 of The First Home Buyers Show – Where and What to Buy
First, in starting the suburb, and understanding what the capital growth potential is in this suburb. Then, I looked at the property itself, and looked at renovation potential, so that is my super sizer in the five step framework of financial success. And then, I looked at the property itself, and looked at how I can negotiate money.
So, three ways of making money, buy below the market, or buy and negotiate so I can make money straight away. Renovate to add value, and making at least $2 for every $1 I want to spend.
Also looking at growth, so in the long term, I have the capital growth working for me. And that’s the three ways that I make money.
Now, how do I minimise my risk? After all, I was an explosives engineer, and I wanted to make sure that it wasn’t a risky decision. So, I only had $45,000 when I started. So, what did I do? I looked at the risks, and I tried to minimise them. How can I have the typical property, and know where the typical property is that most people want to rent, or when I want to come and sell it, sell to them. And the typical property you can find out using census data.
Census is going to tell you what the typical number of bedrooms are, and what the typical type of property is. Now, as you know in the first house buyer group, and in my philosophy, I’m always buying houses, I’m buying established houses. So, I’m not buying new properties, and I’m not buying units.
I want to make sure the typical type of property is a house. And then I just want to know, how many bedrooms do people want? Is it two bedrooms, three bedrooms, four bedrooms, because that’s what I’m going to target. Then I want to make sure, to get even more narrower, I want to know, what is the typical size of the block.
Go into SQM Research then, and then I have a look at what the typical size of the block is. Now, as I said, I showed you some free resources, such as domain.com.au, realestate.com.au/invest is actually where I find all the neighbourhood data.
They’ve hidden it from the menu at the moment, but that’s my secret way of getting there. And that gives us the information about the demographics as well. You can go straight to the source and grab it off the census data, or you can go in there and find the information that you need.
Now, I also introduced you to my suburb selector software, where I’ve actually, when I got really bored and couldn’t find, didn’t want to waste all my time going over all the different websites to find the information, put it all in one place, it’s in my location masterclass. If you head over to the first house buyer group in Facebook, in the show notes, which is under files for this show, I will put in a link to that location masterclass, so you can see how you might be able to use that yourself.
Also, I then showed in RP Data Professional, how you can actually go in and create your own watch list for those specific, three bedroom houses, in 500 to 800 square meters, and when they come on the market, get notified straight away. But also be able to go and create your own evaluation with the data and the tools that most banks use as well.
Now, I also added an extra little tip in there, and showed you a tutorial on how to find, in census, the streets that the renters want to live in. This is an absolute no-brainer, amazing tool. It took me months of working with census, of being able to find out how to this and build their builder, and I only used to work with usually big corporates, so it’s usually just a tutorial that I share with my students, but I’ve actually shown it for you.
So, go to the full episode, episode 7, on the Learn With Jane Slack-Smith page, to be able to see that full episode in absolute depth, so that you can get there. So, investorschoice.com.au/fhbsep7, First Home Buyer Show, Episode 7.
Head over there, or go to the learn with Jane Slack-Smith page in Facebook, episode 7, go through that tutorial for you. So, as you’ve seen, we then took that tutorial, we took that territory, we went back into RP Data, created that territory, looked at the properties on the market, with our absolute goal of having a typical property in the suburb that we chose, which is an affordable suburb in Brisbane. It was a three bedroom, within 500 and 800 square meter block, and we found three properties that are on the market at the moment that might be worth looking at further.
Created up an alert, so that any time any other of those properties that fit that model come up in that territory, we’ll get notified.
So, now you have it all. As an explosives engineer, I learned how to manage risk. I turned $45,000 into a multimillion dollar portfolio by using all the tools and tricks and resources that I’m sharing with you here on the First Home Buyers Show.
This information that I’m sharing with you is some paid tools, some unpaid tools, I give you free resources that you can go to and use right now, so that you can locate the property, and understand where to buy. And once you have that suburb that you can afford in, working out whether it actually has the filters that I use as well, the percentage of renters, the number of sales, and the vacancy rate, just the top three of 20 filters that I use that allows me to ascertain whether that suburb is worth my time and effort.
There you have it, the speedy recap, how to find a property using the tools and skills of an explosives engineer, so that you can get a property that’s going to go up in value, is going to be in demand, and that renters are gonna throw money at you so that they can rent your property.
Watch the full SHOW here
https://www.investorschoice.com.au/FHBShowEp7
Type ‘REMIND’ on the post of the full video and we will let you know when we are going live and you will 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
As a first time property buyer, you have many decisions to make.
How will you finance it?
What lender should you go with?
Should you go for a new build or an established property?
Maybe you could even build your own property?
That last consideration is a tricky one. While there are advantages to building something to your own specifications, there are also issues to consider.
Your lack of experience with property could play a role here. Plus, you might find that a change of heart could lead to you losing a lot of money.
Always be absolutely certain about your strategy before you put pen to paper on any sort of contract.
If you change your mind after the fact, it will cost you a lot of money.
Work with the people who can help you navigate the difficult waters of your first property purchase.
Investors Choice Mortgages has those people.
Join our community and learn about our Framework for buying a property. Visit our Facebook Group where we teach each of the steps to get you to Your Property Success. https://www.facebook.com/groups/firsthomefirstinvestment/
The First Home Loan Deposit Scheme will start in January 2020.
It will allow you to buy a home with just a 5% deposit.
Most importantly, you won’t have to pay thousands in Lender’s Mortgage Insurance.
Just think about all the money you’ll save.
You may think that means you don’t need to think about it until the end of the year.
If you leave it too late, you may not be one of the 10% of first home owners selected.
Only 10,000 people will qualify, which is why you must start preparing now.
Depending on the lender, you will want to see at three to six months of savings to prove your deposit is genuine.
But, some lenders will allow you to count your paid rent towards that amount.
Right now, the scheme is available to single people earning under $125,000.
Couples earning under $200,000 per year can also apply.
The government has also announced that there will be a cap on the maximum loan size.
But, they haven’t told us how much yet.
The FHLDS makes it easier for you to get onto the property ladder than it’s been in years.
You have to prepare now to give yourself a chance when you apply.
Contact Investors Choice Mortgages today to find out how we can assist you every step of the way https://calendly.com/icm-discovery-call/fhb
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 /
There’s a huge danger that every single first-time buyer faces.
It’s called emotion.
Falling in love with a property could cause you to make unwise buying decisions. You might miss issues that will cost you money later on. And if you’re buying with the intention of creating an investment property, you may miss issues that will prevent tenants from renting.
Real estate agents agree.
Former agent Nick Jabbour says:
“We will look at no less than five properties before we sign any contracts.”
The point he’s making is that he doesn’t want his clients to rush into a purchase before they’ve seen what else is out there. If you buy the first property you view, you could miss out on an even better opportunity elsewhere.
He goes on to discuss some other reasons to not let emotions get involved:
“It’s easy to fall in love right away. (But) jumping on the first or second home that a buyer looks at will often result in buyer’s remorse, overpaying and the inability to sell at a reasonable price down the line.”
You don’t want to find yourself wishing that you’d taken a little more time once you’ve already bought the property.
And you also can’t let your emotions stop you from doing the necessary research and due diligence.
Here’s what you need to do.
Treat your first property purchase like a business decision instead of a personal one.
Set it up so that everything will go smoothly. Source it properly, which means getting the inspections you need and looking at the property with emotional distance.
And if you want to slam it, use every bit of leverage you can find to achieve as low a price as possible.
That’s how you’re going to succeed as a first-time buyer and property investor.
Taking control of your emotions is just one of the many challenges you’ll face when sourcing your first property.
We want to help you confront all of the issues.
That’s why we’ve created a community full of people just like you whom you can learn from.
Of course, the Investors Choice Mortgages team provides direct advice too.
When you are ready here is 3 ways we can help you:
Stay up to date with the latest developments in the property market over the past month. Our video takes you through an overview of the state of...
During the cooler months of the year it’s easy to get into ‘hibernation habits’. Comfort food is much more appealing when it’s awful...