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’re a first home buyer, and you’re looking at adding value to your property, then you can do that through renovation.
It is my secret, sneaky, sixth step in the financial freedom framework.
Episode 8 of The First Home Buyers Show – Renovation Strategy
We talk about the five steps, this is the sixth step. Once you have slammed that property, whilst your living in that property, you can renovate it at a time that suits you, when you get the money to do it, you don’t have to do it all at once, to create extra value.
It is like having your own vending machine. For every dollar you put in, with a strategic renovation, you should be getting $2 out.
What is a strategic renovation? Well, a strategic renovation can only be done on old properties, not new.
Buying new actually takes this entire strategy off the table for you.
Now, I talk about my Trid3nt Strategy, three ways of making money. We’ve talked about how to negotiate to make money when you buy. We’ve talked about how to be in a capital growth area, so your property is making you money for years in the future.
And now, we’re talking about #supersizingit that and doing a renovation that strategically, can add $2, at least, for every $1 that you spend. And if you decide to rent that property out in the future, create a higher rental income for you, so the gap between your mortgage repayment and cost and the rent you get is even smaller.
One of the things that people get wrong, well they buy in the wrong suburb. They don’t understand pricing disparity, the difference between the renovated and the unrenovated costs of properties in the suburb.
You have to be in the right suburb first. That’s why it’s important, in the beginning, to see it, and understand your strategy before you even begin. Then what you need to do, is have a property that has the capacity to add value. Not every property that has the need for renovation deserves a renovation.
Understanding if there’s capacity is by looking at realestate.com.au, domain.com.au, or even using RP Data, that allows you to be able to look at the sold properties, and look at what the renovated properties are selling for, and unrenovated, and working out, using trades quotes, and we’ve talked about at least four, so you’re not ripped off, to be able to understand, is there capacity to make some money?
You need to understand what the buying price is, what the renovation cost is, what the profit you wanna make, and what your holding cost is, and if that, in total, is actually higher than what the renovated properties are selling for in the suburb, or the renovated comparable properties in the suburb are, it’s time to walk away, ’cause you’re not gonna make money out of it.
Renovation is a super sneaky strategy to allow you to make money in any market. So, we talked about also, there’s some room-by-room tips that I wanna share with you.
Check out the link to be able to see the www.janeslacksmith.com.au/roombyroom, all those tips and tricks. We talked about how to repaint, we shared a few other tips, get in there and watch the entire episode. It is fantastic, and that is it for the super strategy.
Watch the full SHOW here
https://www.investorschoice.com.au/FHBSEp8
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
We often hear about how important it is to not base your property-buying decisions on emotion.
It’s all well and good to fall in love with a property. But letting those emotions influence your decisions could lead to you overpaying or missing issues.
What we don’t often talk about is the emotional impact that external effects can have on us.
Our client, Jack, lost his father at age 19.
Worse yet, his father’s modest property portfolio was sold off. Thankfully, Jack inherited some of the money. This was his Dad’s legacy; he needed to use wisely.
In his emotional state, it would have been easy for Jack to go off the rails.
Many might have just blown through the money they’d inherited and left themselves in a bad position.
But Jack did something different. In honour of his dad’s efforts to build a property portfolio, Jack decided to use the money to buy his first property.
After just 24 months, Jack had repaid the loan on that first property and began building a portfolio of his own.
Now, he has plans to semi-retire in his 30s so that he can appreciate life that little bit more.
Property investing can help you to create the freedom to live your life the way you want to live it.
If you would like to learn more about the Framework to help build semi-retire earlier than visit our Facebook Group First House Buyer where we teach each of the steps to get you to Your Property Success.
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
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...