FIRST HOME BUYERS ARE IN THE LEAD!

You couldn’t miss the recent press coverage on the cooling Australian housing market. According to leading property experts, first home buyers are the cheeriest of them all1. We are seeing the highest level of first home buyers (FHBs) since 20102. It seems some FHBs are now feeling more confident to spring into property ownership, but some may still be cautious.

Typical questions people ask themselves when taking their first plunge into property investing are:

Can I have my lifestyle AND buy a property?
Can I afford to buy or invest?
Can I live in my investment property?

Well… this all depends on which state you are in and the state’s criteria.

What grants or concessions am I eligible for?

FHB grants and concessions eligibility differ in each state, so do your research!

Outside of those very relevant questions, there are other factors that influence WHEN buyers are ready to move in.

Property prices – we have seen higher property prices in many capital cities over the last decade
Tougher lending environment – there is increased scrutiny on bad debt, credit history and credit scores – think late payments on mobile and internet bills and HECS fees repayments
Australian wages – are not keeping pace with the cost of living
FHBs are getting older – as at December 2017, the typical first home buyer was 31, up from 27 in the early 1990s3. The older you are, the more questions lenders will ask – How long will you have to pay down the loan? How good is your credit history? The older you are, the longer you have had accessing credit. If you are an older FHB, you have had the time to build up your credit history through credit card use, personal loans and even mobile bills.

If you are a younger FHB, you need to create and build up your credit history.

Call us to talk about how you can build a good credit history because you need to show you can make repayments before lenders will consider giving you a loan.

So, with all of this negativity and tougher lending conditions, why would anyone consider buying a property?

There are a couple of old sayings when it comes to purchasing property:

"The best time to buy was yesterday, the second best time to buy is today! and Time in the market beats timing the market."

Despite recent falling prices, property is a long-term game and over time prices will eventually rise. The property market goes through ups, downs and plateaus, but property is a long-term capital growth strategy. Buying in a property downturn can reap returns with increased equity as the market lifts over time.

The right time to buy is when you can afford it, when you are ready to and when you have less financial responsibilities!

First home buyers can have the upper hand to seasoned owners or investors as they have had less time to accrue bad debts and have considerably less financial responsibilities and stress i.e. existing mortgage, children or aging parents.

With the tougher lending environment, scrutiny on credit history and household expenses, ‘cleaner’ first home buyers will be seen favourably by lenders.

Tip to first home buyers – make your move into the property market while your responsibilities and expenses are lower!

While everyone else is sitting on the fence, or simply waiting for that ‘bargain buy’, you could be the one who gets ahead in this very FAVOURABLE market.

Interest rates are at an all-time low, it would be silly not to take the plunge. It is not just about the property price but also the mortgage repayments. Here’s an interesting fact for you: although property prices were lower, your parents would have very likely paid anywhere between 7% to 17% interest on their loan.

Could you afford a property IF your interest rate is at that same level?

Don’t delay any longer. Contact us before you take the plunge into property ownership to ensure you are in the best position for your specific situation.

Sources and Links:

Domain: House Price Report, June Quarter 2018
Realestate.com.au: First home buyers are the cheeriest of them all, 4 Sept 2018
NG lending records and industry data

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and that your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. © 2019

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4 Tips For Finding That Perfect High Yield Property

By Kola Dev • March 19, 2025

Any property guru worth their salt will tell you that a dream property investment has nothing to do with a prestigious address or sleek amenities. The ultimate goal, is to find that perfect “high yield” property that will give you maximum returns for as little input as possible. Yield refers to the amount of cash a property produces as a percentage of its value and is calculated by the rental income you are receiving compared to the purchase price. There’s a lot more that goes into the calculations, which I’m happy to run you through, but to give you an idea on what to look for, I’ve put together some simple tips. 1. Do your research. There are plenty of stats out there that will give you the median rental yield for each suburb. This is a great place to start! 2. Look for dual income properties such as a house with a granny flat. You can potentially have two streams of rent coming in, meaning the chance for a higher rental yield significantly increases. 3. Have you thought about looking rurally? Country towns offer some great properties at a low price and because the cost of living is low, the rental yields tend to be higher. 4. Always think forward. Be on the lookout for up-and-coming areas and ask yourself if they’ll still be flourishing in five years time. At the end of the day, you need to be realistic. Just because a property has a high yield doesn’t mean it’s going to be a great investment. As a mortgage broker, I can talk you through your options for investment loans so you can see what your monthly outgoings might look like. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment.

7 Quick Ways to Upgrade Your Home

By Kola Dev • March 19, 2025

The continuing boom in property prices has tempted many homeowners to invest in renovations to maximise the value and then put their home straight on to the market. There’s no doubt you stand a better chance of enjoying a great return on your investment if you modernise your home. Properties that enjoy a mix of the traditional and the contemporary are in big demand among today’s buyers and nothing ticks the boxes more than a brand new kitchen or bathroom. Two increasingly popular features at the moment are a dedicated home office and a design that connects the indoors with a garden or entertaining area. But renovation projects of this size can become expensive. If your budget doesn’t allow for large-scale upgrades, there are plenty of ways to enhance the value of your home at little cost. Here’s a seven-point guide to upgrade your home. 1. Break out the brushes It’s amazing how a fresh coat of paint will improve a property. Don’t focus only on the walls but attend to the skirting boards, ceilings and architraves. Select neutral colours as these make rooms feel bigger. 2. Go green Small-scale improvements to your gardens work wonders. Focus on the front yard as this creates an all-important first impression. 3. That’s entertainment If your property lacks an area to entertain, this is a great low-cost project to enhance your property’s desirability. Consider adding a deck or a barbeque area. 4. Floor ’em A mixture of different floor types can make a home feel bitsy while a home with consistent flooring creates a great sense of flow. Replacing the floor can be a painful project but you’ll be amazed how much bigger your home feels. 5. Say it with storage You can never have too much storage. A bedroom without built-in robes is just asking for clothes on the floor. Think about storage in bedrooms, bathrooms, kitchen and laundry and looks at ways to create clever storage solutions in nooks and under the stairs. 6. Kitchen upgrades If yours is a little tired, don’t worry – you don’t have to rip it out and spend big dollars. Consider replacing only the doors, drawers and handles. You’ll achieve a transformation at the lowest possible cost and it will feel like new. 7. Unbeatable bathroom Like the kitchen, this can be an expensive renovation. You can avoid replacing tiles by using a professional company to spray-paint them. This treatment can also be applied to sinks, baths and showers. New tapware and shower screens complete the refresh for a fraction of the cost of ripping and replacing. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment. *This article is provided for general information only and does not take into account the specific needs, objectives or circumstances of the reader. Before acting on any information, you should consider whether it is appropriate for your personal circumstances, carry out your own research and seek professional advice.

7 Tips for Organising Your Finances Before You Buy A Home

By Kola Dev • March 13, 2025

There are many tips for buying a property, but there’s one essential element that no one can avoid - getting your finances in great shape before you start. Knowing what you can afford is a critical element of finding your first home or the next one that takes you higher up the property ladder. The most successful buyers begin their search with their finances in order and a pre-approval letter from their bank or lender. They know their budget and tailor their efforts accordingly. There’s no greater waste of time than visiting properties that are beyond your price range. Using a mortgage broker can help you shortcut the hours of research through various banking products and good brokers have detailed market knowledge and can offer an array of products. We can suggest the loans most suitable to your circumstances and assist you with paperwork, and review your credit history. We can also help you understand any grants or tax exemptions from state and federal governments that you may be eligible for. Below are a few tips for securing the finance that will help you find your dream home. 1. Clarify your finances If you’re a homeowner, you’ll need to obtain a valuation on your current property and provide proof of current earnings. A first-time buyer will ideally have 10% of the purchase price as a deposit to get the best interest rate and conditions for their first loan but the more the better. Money for legal fees, property inspections and taxes need to be set aside, too. Make sure your tax returns are up to date to prove your earnings. It will make life easier. 2. Low barrier to entry You can obtain a conventional loan with as little as 5% of its total as your deposit. Some government-backed loans do not require a deposit. 3. It pays to save The more you save, the less you borrow. And that means lower your monthly repayments for you over the term of the loan. 4. Go for a grant First-home buyers should research the current grants from various levels of government that are designed to encourage them into the market. 5. Credit crunch You’ll need a good credit history to be attractive to lenders. Check yours out by using companies such as Experian and Equifax. If your track record is not the best, we can discuss ways to address this. If errors appear in your credit history, dispute them immediately. 6. Find the right loan You can save thousands of dollars by choosing the right mortgage product for your situation. It pays to shop around and make a note of not just the interest rate but the fees that come with it and other services that may be offered. As your mortgage broker, we can guide you through this process. 7. Be pre-approved A written undertaking from your lender will help you focus on what you can afford, as well as signal to a prospective seller and their agent that you’re not kicking tyres. Watch out for lenders who will only “pre-qualify” you, as this represents only an estimate of what you can afford and does not offer any guarantees of intention to lend. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment.