Following our seminars and webinars, I am meeting more and more younger clients (and their parents) who sadly believe the media that they simply cannot BUY and are ALWAYS pleasantly surprised when I show them how they can apply their savings to purchase – often immediately!
However, there are a few golden rules which when applied, make the entire lending process a lot easier.
To assist in educating those who could be buying their own home, I have written Ten Golden Rules for First Home Buyers. If you know anyone who might benefit, please share this link with them as once people realise how possible achieving home ownership is, they gain confidence, not just financially, but in many other aspects of their lives.
A new initiative by the Victorian Government also aims to help First Home Buyers – click here for more details.
Without savings, first home buyers on modest incomes can apply for the Government to take a stake in their home, therefore, avoiding Lenders Mortgage Insurance which is insurance forced onto borrowers to pay for lenders, when you borrow over 80% of the property’s value (or 60% when applying on a low-doc loan).
While I am always concerned when governments interfere in property processes, at first examination, this scheme certainly seems to have some value as the loan required to complete is lower and the Government does not get its stake back until you sell the property. Presumably they make on any gain as well but the details are yet to be finalised and the implemtation date is not until January 1, 2018. We will keep an eye on this over the coming months.
Our aim at The Property Education Company is to improve everyone’s financial confidence through education and support so we can all make a bigger contribution elsewhere and with that as our foundation, we have joined B1G1 – Buy One Give One – an organisation which encourages small business to make regular small contributions, rather than waiting for huge success which might not come for a long time.
Thank you for being a part of our Community and trusting us to support you (and your family and friends) on your financial journey.
Congratulations to our client, Adam P., for his “best in class” suggestions and thank you to all our other clients who responded to our competition with your ideas on how to “best repay a loan quickly”. Adam’s ideas included:
- Use an offset account to minimise interest charges
- Get a credit card (up to 60 days interest free) set up to auto pay from your offset account and buy everything on that
- Make weekly loan repayments
- Make sure the loan repayment happens on the same day as the interest charge (or the next day) so you don’t pay interest on interest (banks like to set the two as far apart in a month as possible by default!)
- Earn more!