Frequently Asked Questions
- I don't want to buy my first home yet, is it worth starting to look?
- Is it still affordable for first home buyers to enter the property market?
- I've heard that 'Rent Money is Dead Money.' Is this true?
- There are so many options when buying a property, types of dwellings includes Land, Apartments, Townhouses Units or Houses. What is the best type of property to purchase?
- Why is having a strategy so important? I just want to buy my first home.
- It's a jungle out there, who should I be speaking to about buying my first home?
- Should I get finance pre approval and why is it so important even before I look at property?
- What happens if interest rates rise?
- Whose name should I purchase the property in?
- What is an area specialist and can I become one?
- Can you give me tips on negotiating on a property?
- How is an Auction different to a private sale?
- What is the best way to make an offer on a property?
- My circumstance is confusing. Am I eligible for the first home buyers grant?
- First home buyers don't have to pay stamp duty, is this correct?
- So many first home buyers default on their loans it seems, how can I make sure I'm not one of them?
- What is included the First Home Buyers Help Kit?
- I'm not a first home buyer but would I benefit from the First Home Buyers Help Kit?
- I know nothing about buying a property, is the First Home Buyers Help Kit too advanced for me.
- I don't have a lot of spare cash, is it worth buying the First Home Buyers Help Kit?
- How can join the Affiliate program?
ANSWERS
Yes!! It is never too early to start to look for a home, even if you do not plan to buy for 12 months or longer. By starting to look at the property market now, you will become more educated, so when the time comes to purchase you will be what I call an ‘area specialist’. That is, you will understand the market in the area you are looking to buy and therefore be in a position to pay a fair market price for your first home. Too many people put off purchasing a home because they want to keep saving. It is almost impossible to save at the same rate property prices are increasing and therefore it may not always be the best strategy if your goal is in fact to purchase a home for your long term future.
This depends on where you live, but in all major cities around Australia pricing is becoming more and more unaffordable for first home buyers. Your first home may have to be a stepping stone to your dream home, but that doesn’t mean you can’t live in your desired location now! Educated First Home Buyers are still able to enter the market and avoid the dangers of interest rate rises or over capitalising by having a well thought out strategy. In fact you may be able to purchase a home and still live in your desired area which is otherwise unaffordable by using the correct strategies.
Far from it! Why is rent money considered to be dead money after all? The reason is that some people do not like to pay off other peoples homes and feel they should be putting that money towards their own homes. Whilst a valid point, the alternative is often that you have a large mortgage in which you make much higher repayments in which 84% of them in the early years are actually interest. Taking the thinking that rent money is dead money then isn’t interest money also dead money? Learning to look at the numbers differently can help make better financial decisions and with a few basic tips it is actually very easy to do. Your aim should be to be a home owner rather than a lifelong renter but make sure you understand both before
- There are so many options when buying a property, types of dwellings includes Land, Apartments, Townhouses Units, or Houses. What is the best type of property to purchase?
That all depends on the individual, the best type is usually the one that will suite your lifestyle the most. Each has advantages and disadvantages and they need to be weighed up with a five year goal. If you can’t see yourself living in the property in five years time or don’t have a strategy beyond 12 months then you need to consider that first. One of the biggest problems first home buyers face is that they are influenced by Uncle Joe who heard that lots of investors lost money on Apartments or their mate Andy who thinks the only way to go is to buy within 10km’s of the city. The question is not ‘what is the best type of dwelling to purchase’ but ‘what is the bet type of dwelling for me?’
It is a misconception that you can buy property and not lose. Have you ever heard the sayings ‘you can’t go past bricks and mortar’ or ‘safe as houses’? Sure 20 years ago, maybe that was true, since then though we live in a much different market. The start up costs of stamp duty and lenders mortgage insurance alone can cost upwards of $20,000. Not only that, the market may halt with a few interest rate rises whilst your monthly payments increase. In a day in age where 2 incomes in a family can be very important, the first home buyer often is in a stage of their lives where kids may not be far away as well. This not only costs money but can seriously decrease household income for a period of time. The other problem is that kids take up space and the two bedroom unit you purchased can be outgrown very quickly!
Everyone has their own opinions on buying a home, your family, your friends and the media. I am a great believer on talking to the people that actually deal with real estate on a day to day basis in their profession rather than family and friends. I have found a great mortgage broker who I know will give me the best advice for my circumstances, I have interviewed real estate agents who are also friends first, who give me answers straight down the line. I also study and speak to investors who have bought hundreds of hours and know all the tips to saving thousands of dollars. Who you speak to and take advice from is up to you but if I need a tooth pulled out I’m visiting a dentist, and when I want to buy a property I speak to mortgage brokers and real estate agents.
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- More questions? Return to the top of the page
- Give me a free report on Mortgage Broking and get a trusted broker to contact me for pre approval on a loan now!
Pre approval for a loan will set you on your way and is really step one in the home buying process. To not get pre approval for a loan can be like trying to find a house in a street you are not familiar with based on how the house looks. In other words it can be done, but it is the harder way home. Wouldn’t you rather just have the street number so you are certain right? You may believe you can borrow $300,000 based on an internet assessment but if in reality no lender is prepared to give you more than $290,000, this can be a major impact on what you can actually afford to buy. In fact, you can increase your serviceability (amount a lender will lend you based on what you can repay) whilst you look at property with advice from a mortgage broker. If you don’t have pre approval, you really don’t know where to start.
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- More questions? Return to the top of the page
- Give me a free report on Mortgage Broking and get a trusted broker to contact me for pre approval on a loan now!
Once you have a mortgage you are locked into whatever your contract says, which in most cases will have a variable interest rate attached. Therefore an interest rate rise of 0.25% will affect anyone with a variable interest rate on their mortgage. The good news is that for those yet to buy a home they can mitigate their risk by fixing an interest rate. A safe option is you can borrow less, yet pay the same amount that an interest rate rise would force you into paying. Interest rate rises are not always a bad thing either, especially if you are not yet in the market, as it may slow property growth and allow you to save more money and give you time to be more prepared when you do purchase a property.
In most cases you will purchase your first home in your own name or in the name of yourself and a partner. Make sure that if you purchase with a friend or partner that you are still eligible to apply for the first home owners grant. If you are buying property for investment purposes the issues to consider are whether to purchase in the higher or lower income earners name or for more advanced investing strategies in a company or trust. Make sure that your loan matches up to the title of the house!
An area specialist is any person that has substantial knowledge of a suburb or area and the property prices within that area. An area specialist is able to estimate prices and have an understanding of where the nearest public transport, shopping centres and infrastructure are located, and why they add value to the location. Anyone can become an area specialist and start with simple research on the internet.
The First Home Buyers Help Kit is full of tips on negotiation and dealing with real estate agents and vendors. The best tip I give you in a sentence is to remember that everything is negotiable, not just price. This piece of gold can save you thousands if you apply it properly or give you more favourable terms in your purchasing contract and anyone can do it! Negotiation can be a scary experience but made much easier when you give yourself the tools to justify your price. There are plenty of tools available in negotiating, it is just applying the basic principles and strategies to the right property which will have the real estate agents and vendors seeing your point of view.
An auction is different to a private sale as rather than going through a negotiation process to come to an agreement the home is sold to the highest bidder at a specified time. The vendor will have a reserved price and once bidding reaches this price the property is on the market. The auctioneer may put in vendor bids and have to follow rules on marketing the property and how they accept the bids. An auction can be a pressure cooker but there are some great strategies to take the pressure off and be ready should the property be passed in. Although it is a over with in less than half an hour usually you can be the most prepared by following some simple steps. As a start become familiar with the 10% Rule where a property must be ethically advertised so all potential bidders have a realistic chance of buying the home, rather than just making up the numbers.
If you are serious about buying a property then you probably want your offer to have the best chance of being accepted whilst protecting your interests. Think of it like a resume, in a hotly contested job the better looking resumes will be looked at first. Your offer should be written and signed, include a sunset clause and any subject to clauses to show the real estate agent you are ready to buy now. These terms may sound a foreign to you now but are explained in detail in the First Home Buyers Help Kit and can be applied by anyone. If you want to reach the fair middle ground in your negotiations multiple offers may need to be submitted until both parties can agree.
There are 7 basic questions which determine if you are eligible for the $7,000 government grant. The most common questions I am asked is ‘how long do I have to live in my first home for to be eligible?’ The answer is generally 6 months depending on your state. You must move into your home within 12 months and have not owned a home before or have owned an investment property purchased later than 1st July 2000. The First Home Buyers Help kit guides you through what you need to know and includes downloadable application forms so you are ready to go! Most States also have a Stamp Duty incentive for First Home Owners which can be worth a few thousand dollars depending on formula your state uses to determine the additional benefit. . In Victoria there are no stamp duty incentives but instead a First Home Owners Scheme to the value of $3,000
Each state is slightly different but generally the answer is no, unfortunately not. Most states have a scheme in place to give stamp duty reductions although for some cheaper homes, in fact no stamp duty is payable. Stamp duty is the largest start up cost and in Victoria for example a $300,000 will incur $13,660 worth of stamp duty. This cannot be avoided and often takes a large amount of your deposit money. Due to the cost of stamp duty and how it cuts significantly into your savings I have included strategies in the First Home Buyers Help Kit that actually uses stamp duty as a tool to save money in other areas.
The media will have you believe that first home buyers often default on their home loans. Whilst they are most vulnerable due to their lower asset base and lack of equity in their home the only factor that will create is poor planning. A default in a loan is only created by borrowing to your limit and then either having another child, loosing a job or reducing income or multiple interest rate rises. The best advice I can give you is to become educated so that you are able to make the best decisions for your circumstance. After all it is the Great Australian Dream and owning a home is an achievement to be proud of.
A DVD of the Closed-Door First Home Buyers Help seminar which run for 98 minutes held in front of a small group of first home buyers who paid $247 to be in the room; Including First Home Buyer tips from Mortgage Broker Neil Gorman
An Audio CD of the First Home Buyers Help seminar and BONUS DVD so that you can now listen to it in the car or MP3 Player as you search for real estate on the road;
A CD Rom Resource Bank containing all the spreadsheets and calculations you will need to assess your personal situation, designed to understand your finances, and make your next step towards owning your own home;
A 200 page course manual including practical exercises, real life case studies, must know property principles and hints and tips of everything you need to know to get started
A BONUS DVD: Filmed over 12 months containing case studies, the best way to get started and become an area specialist, uncensored interviews with real estate agents, a mini seminar and tips on how to get the most out of your money in the market
Yes!! Whilst the First Home Buyers Help Kit has been developed to assist first home buyers the information is relevant to anyone looking to purchase a house. I have been trained as an accountant and been coached and involved for the past 2 years as a member of a property investing group. Buying your first home is daunting which is why I have packaged it up and have a checklist. However the really important information is the money saving tips and strategies which can of course be used by anyone whether it is their first, second or tenth house!
Not at all! It has been written and filmed to go through the various stages of buying a property. At the end of some chapters there are practical exercises to enhance your understanding and assess your personal situation. There is a chapter where some more advanced concepts are discussed, however anyone can understand them. Whilst for your particular situation some areas may not be essential for you to learn, this is unique information that is not available anywhere else!
My aim is to educate and make this product available to as many people as possible. That is why there is a simple payment plan available so that you are able to start your education now. Not only that, I back my product all the way and if you feel that you don’t save at least 10 times what you paid for it from what the First Home Buyers Help Kit has to offer then you can simply return it, no questions asked and No Risk to you. It is really up to you on how you invest your time and money, but investing in this product which guarantees to save you thousands of dollars or you get your money back. It is well worth finding the spare cash because it is going to create a lot more of it.
You can join the Affiliate program by simply clicking on the link below. The program is set up so that you can also make money from the First Home Buyers Help Kit. My aim is to educate and help First Home Buyers into the market and to give them options as it becomes increasingly difficult to enter the market. By encouraging you to join my program I am able to get the message out to more people who you may know could really do with this help. It is easy to do and all automatic, I will send you material to help you and everything is done online for you from collecting payments to sending out the product!