Should I Get a Renovation Consultant and Manager? #Supersizeit If you did want to get a renovation project manager in because it's your first...
We had a look at the financial freedom framework!
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!!
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