6 ways to get a deposit for a home - buy it starts with the first step

Navigating the journey to homeownership in Australia can be challenging, especially when facing the deposit hurdle. 

The key is to have the right mindset, a vision of what you want - and a smart goal of what you want to achieve .

A goal that is Specific , measurable, Achievable, Realistic and with a time frame .

If you don’t have a deposit , here’s  a quick look at some tips to enable you to get that kickstart!!

1. Leverage Government Schemes: Utilize programs like the First Home Guarantee for a lower deposit requirement. If you are a front line worker - there are some amazing programmes - such as the NSW home shared equity scheme, where Government will fund up to 30pc of a property (new buildings 40pc )

2. Explore Alternative Lenders: Don't limit your options; alternative lenders might offer more flexible terms.

3. Consider Shared Equity: A viable solution for those unable to buy outright, increasing ownership over time.

4. Innovative Saving Practices: Regular saving and expense management can accelerate deposit accumulation.

5. Boost Income Creatively: Side hustles or renting out space can supplement your deposit savings.

6. Professional Financial Advice: Having a financial planner, accountant and mortgage broker in your team is gold . They  can help tailor a plan to suit your unique homebuying journey.

Your dream home is within reach with the right mindset, approach and guidance. 

Let's discuss how we can help you make it a reality.

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Call me on  www.bsifinance.com.Au

People often ask me - what do you need to retire?

People often ask me - what do you need to retire?

To fund a ‘comfortable’ lifestyle the Association of Superannuation Funds of Australia (ASFA) indicates that you would need a passive income of $50,207 for singles and $70,806 for couples. 

Those numbers equate to around $60,000 and $90,000 in pre-tax income today. 

This is of course assuming you own your home debt-free. 

So what capital do you need to retire? 

If you work backwards and assume you have an asset generating 5% yield a single person would need roughly $1.25m (in addition to having their own home fully paid off) and a couple would need $1.75m. 

Average super balances at retirement are $400k for singles and $700k for couples 

leaving a gap of $855,000 for singles and 244% $1.03m for couples. 

The pension - although generous -  is clearly not enough to find your retirement being $25,065 or $482 per week for singles and a combined pension of $39,269 per year or around $755 per week per adults - and with no adequate savings you risk being one of the 33% of Australians who will retire in poverty?

How do you close that gap and not be one of the 33% of Australians are at risk of retiring in poverty?

A tried and tested  way to beat this hurdle rate is using leverage or borrowings to invest in property. 

And based on a number of polls - most think that property prices will increase over the next 10,20 and 30 years !

For a fairly typical property using a 10% deposit, the internal rate of return is better than 13% per annum with  good properties ending up being around 20% per annum over the long term which comfortably beats the real rate of inflation. (As long as property continues to increase over the long term )

Of course you can also  invest in things like tech stocks and cryptocurrencies. 

 Property seems to be  a safe and practical way to escape the poverty trap and have a retirement that looks something like an advert from a SuperFund!! 

A key ingredient , in my view is to have a team around you that you can trust and rely on to help you on your journey to close the gap! 

A good financial planner,  a good mortgage broker (that’s me :) ) is a key cog in this team - be sure that you have one! 

Investing in Property Starts with Developing an Investment Strategy

This popped  in my feed from 2010 - 

And yes - property has doubled in 14 years!!!

1. Investing in Property starts with developing an Investment Strategy!

Before Investing in Property, Shares or other Asset Classes, one should consider factors that include their current financial situation, their existing investment portfolio and their goals for the future.  

Each investor is unique and have different goals for investing – some want a passive income streams, others may want to invest for capital growth so that they can sell their property when they retire, while others may investment in property for their children or parents to occupy. 

The process of building an investment portfolio should involve planning and research vs taking an educated guess on a property and hoping that it will double in value every 10 years. 

A property is a substantial asset, and if one buys a property at the wrong time, it could take many years for ones investment to be successfully realized. 

2.  RESEARCH RESEARCH RESEARCH!! 

Look at the area

 – demographics, infrastructure, population growth/change, desirability of area for tenants, yield, and accessibility to transport, shops and schools…. amongst other factors. 

3.Take emotion out of your decision making process

 Where you want to live vs. where you and to invest are 2 different decisions!!!

For more information, go to www.bsifinance.com.au

Is 2024 the right time to buy an investment property?

2023 has seen a significant increase in rents for investment properties (10pc for units and 7.5% for houses, and according to CoreLogic’s research director, Tim Lawless the lack is supply is indicating that this growth will continue in 2024! 

Is this a good time to buy an investment property in 2024?