What Are the True Costs of Consolidating Debt Into Your Home Loan?
Consolidating credit card and personal debt into your home loan can genuinely reduce your monthly repayments - sometimes by hundreds of dollars -...
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
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:
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
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/
In Episode 9, we talked about suburbs and where you can afford to buy.
Episode 9 of The First Home Buyers Show – Where you can afford to buy
Now, if you are someone who’s a first-time buyer, an investor, someone who’s going for the First Home Loan Deposit Scheme, then you would not want to know where your money is going to be the best spent.
If you are going to buy under the FHLDS, there are some property purchase caps, depending on whether you’re in capital cities or regional areas, and they change state by state.
We covered that off in the full episode https://www.investorschoice.com.au/FHBSEp9
Let me tell you what we did. A number of the community members in the First House Buyer Facebook group nominated some suburbs for me to have a look at.
Now, I looked at three suburbs, one in Sydney, one in Melbourne, and one in Brisbane.
I used different techniques to look at each of those suburbs, but I was looking at all the same things. So, in the very first suburb that we looked at, I used all the free software that is available.
First of all, we went into realestate.com.au, and I showed you where the suburb profiles were, domain.com.au, we then headed over to SQM Research.
We then went to Census as well. We gathered all the information from all the different areas, and the information we’re looking at is information that’s going to give us an indication about whether that suburb is going to perform well.
Now, first and foremost, we were looking for pricing pressure.
This is sometimes called the ripple effect, and the ripple effect just means that when people can’t afford to buy in one area, they kind of move to the next area, and that’s when the prices start going up.
We looked at ripple effect. We then looked at some of the filters that I have used as I’ve been investing over the last 20 years, and what I have done in looking at the last 20 or 30 years of pricing in different suburbs.
I try to work out what suburbs have outperformed the others in some of the filters. And then, I’ve applied some low risk categories as well.
Some of the filters that we were looking at, I want to have at least 30% renters in the area. So, we jumped over to census, and we found that. I want to see how many sales are happening as well in the year, because I don’t want to be wasting my time in areas that haven’t had a lot of properties for sale.
If there’s only two properties coming on the market every single month, am I going to spend every week in there, hoping that the property’s going to come up?
No, so I look for a minimum of about 60 sales. I then also looked at vacancy rate.
Now, vacancy rate is another measure of demand for rental properties. It is accepted that 3% is considered to be equilibrium. So, when the vacancy rate is 3%, there’s as many people looking to rent as there are landlords putting their properties on the market.
So, if we want an in-demand rental property, we want to be below 3%, so we look for vacancy rates below 3%. And you can pull all that information from all those different websites. But then we went to the second suburb that I reviewed, and when we looked at the second suburb, I used my proprietary Suburb Selector Software, which I have available in my location masterclass, and we have links to that.
What I wanted to tell you about, that is, I kind of got a bit lazy. I thought, I’m going to all these websites, I’m trying to find this information, so I thought why not just get it all and put it in one spot?
I buy data from SQM Research, I get all the data from census, I add it all together, I allow you to put filters in there such as, this is what I can afford to buy, and very quickly I can have a look at the information. It gives me an idea of pricing pressure. It gives me all the data that I need to know, even down to the amount of public housing, which did come up as a concern in one of our suburbs.
All the information in one place. And as you can see, in the analysis, if you go back to the full episode of episode 9 in The First Home Buyers Show, you can see it took a lot less time.
And then we looked at what the typical property is. So, when we went into suburb number three, we once again, quickly did some analysis, but then I looked at another paid tool, and this is RP Data. And RP Data Professional, which is $150 a month, allows you to go in, and once again, you can create alerts, which I showed you how to do.
Now, you can do that in Domain and Real Estate, which are free, but some of the things you can do in RP Data which I just love, is that you can also go in, and you can have a look at the area, making sure it’s a typical type of property. You can have a look at comparable sales, you can have a look at recent sales, but you can also go in there and you can generate your own valuations.
Now, this is the same tool that a lot of the banks use for valuations, so you’re ahead of the game. So, not only are you going to be notified when the typical property, well, let’s say it’s a three bedroom house, comes on the market, and you get that information from census or from my Suburb Selector Software, you get that information because you want to have the typical property. And why is this so important?
Well, I’m glad you asked. It is so important because we need to have the typical property that most people want to buy and most people want to rent, if you want to rent it out, because we want to minimise our risk, and not having property that is so obscure that you’re going to have a really limited market to rent or sell it to. So, we want a property that the typical people want. So, there you have it, I have covered off a lot of information.
We looked at three suburbs. Now, these three suburbs were actually on my list as well. We looked at the pricing caps for the First Home Loan Deposit Scheme, and another thing that we did is, I actually shared with you, the suburbs that have come up when I’ve done my analysis over 8,500 suburbs, in the month of December, 2019, that I think are worth a second look for a savvy investor or a first home buyer.
Please, go into the website, check out those suburbs, have a look at the analysis, learn how to do it, because this is something you can do yourself, and it gives you the information that you need, so that you can be ahead of the game. And if you like this information, please, go over to the first house buyer page, check it all out.
I really encourage you to get your lending assessment, eligibility assessment done if you are looking for the First Home Loan Deposit Scheme. Head over to firsthousebuyer.com.au, where you can have a two-minute quiz to work out if you are going, how you’re going to assessed by lenders.
Go over, also, to that firsthousebuyer.com.au website, because I have a link there to the grant eligibility quiz as well. So, both of these quizzes take about two minutes each. It gives you an idea whether you’re going to be eligible for the grant and for how lenders are going to look at you.
Watch the full SHOW here
https://www.investorschoice.com.au/FHBSEp9
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/
Links shared in this episode:
Lending and Grants Eligibility Assessment http://firsthousebuyer.com.au/
Domain www.domain.com.au
Real Estate www.realestate.com.au
Suburb Selector Software https://www.locationmasterclass.com.au/join
RP Data http://www.rpdata.com.au
Click here to see all the episodes > First Home Buyer Show Playlist
If you are one of the the lucky few chosen and get access to the First Home Loan Deposit Scheme, you can buy your first home with a 5% deposit and avoid dreaded Lender’s Mortgage Insurance in the process.
The scheme starts in January 2020… But it is only available to 10,000 people per year!
Start preparing for your application now. There will be a lot of competition from other first-time buyers. Most lenders will want to see at least 3 months of savings figures.
The Simonds Group predicts that the demand will far exceed the 10,000 the government’s allowed for.
This means you will see Simonds and others rushing to promote this and get unsuspecting FHB’s into their new properties, which we know don’t grow as fast as established homes, however their promotions will dry up the 10,000 fast.
Investors Choice Mortgages can help you to untangle this complicated web of grants and deposits.
We’ll teach you how to leverage everything that’s available so you can get your property faster. And with our help, you’ll turn that first home into an investment property in 12 months. Contact us today to find out what you need to do to get yourself in a position to borrow https://calendly.com/icm-discovery-call/fhb
Consolidating credit card and personal debt into your home loan can genuinely reduce your monthly repayments - sometimes by hundreds of dollars -...
Government schemes like the First Home Guarantee and the First Home Owner Grant are genuinely game-changing for eligible buyers. But here is the...