What the media neglected to report about the First Home Loan Deposit Scheme

7 News reported that ‘Hundreds of First Home Buyers have already signed up for the a Federal Government’s First Home Loan Deposit Scheme, but almost as soon as this initiative was made available the media put out their typical ‘negative-spin’ report saying that the new initiative was going to cost First Home Buyers more financially in the long run and issued the below warning…

Financial warning

But financial experts have issued a warning.

"The smaller the deposit they have, the larger the mortgage is going to be (and) the longer it's going to take to pay off," says Tim Lawless from CoreLogic.

They say while it will cut the time to save for a deposit, the trade-off for those eligible is that they face paying tens of thousands of dollars in extra interest over the life of the loan.

CoreLogic also warns the initiative could drive up house prices, pricing many more out of the market in the future.

There are 3 major factors that the media & Tim Lawless didn’t include in their article…

1. A large percentage of First Home Buyers struggle to save the 20% deposit which would allow them to avoid having to pay Lenders Mortgage Insurance (LMI) and reduce their total loan amount.

2. By the time a First Home Buyer saves the additional 15% deposit to avoid having to pay LMI, it’s highly likely the property that they’re looking to purchase will have increased in value significantly, especially considering the recent double digit growth experienced in the Sydney housing market.

3. If the buyer misses out on the Federal Government First Home Loan Deposit Scheme then on top of the 5% deposit they also have to save the Lenders Mortgage Insurance (eg. as per the example below using the yourmortgage.com.au calculator it would add up to an extra $27,478.75 required to purchase a $650,000 property)

In this example, the buyer has to save a further $97,500 to be able to afford the 20% deposit Tim Lawless from CoreLogic mentions within his media statement.

Saving this extra deposit would typically take several years to achieve and by the time the first home buyer saves the extra deposit property prices may have increased by a further 10% which would actually mean that the buyer would need to have saved a further $15,000 approx. on top of the $97,500. (Over $110,000).

It can be a never-ending, vicious circle for First Home Buyers to get a foot into the market. Many postpone buying a home indefinitely because they never feel that they can afford to buy a home.

The Federal Government’s First Home Loan Deposit Scheme allows low, and middle-income Australian first home buyers to purchase a property with a deposit as low as 5% and pay no Lenders Mortgage Insurance (LMI).

The best part is that you can use the scheme together with other grants such as the state governments’ first home owners grant (FHOG), stamp duty concessions and the First Home Super Saver Scheme.

But, don’t purely base your home buying decision on grants

Some first home buyers specifically choose a property type or location purely because of the additional first home benefits.

WARNING: I believe that your focus should be on what property is most suitable for you and if you’re ready to buy a home, but what I’ve also found from past experience is that a lot of First Home Buyers have lots of well-meaning and often interfering advisers who may have seen the snippet from the media about the scheme and can scare buyers away from applying.

Too many first home buyers are easily misinformed and some buy a property before they are ready. Make sure you do your homework before you get deterred by the nay-sayers.

For more information about the Federal Government’s First Home Loan Deposit Scheme click here…

I hope find this information helpful.

Regards

Greg Vincent

55 Life Lessons To Inspire You In 2020

One of my mates, Adrian D’Amico shared this inspirational list earlier today via Facebook and I thought I would share it here…

55 Life Lessons To Inspire You In 2020

1. You're stronger than you give yourself credit for

2. When opportunity knocks it’s hard work that answers

3. That thing that makes you light up and come alive, that is always on your mind and keeps you up at night, it's your soul talking, listen

4. Find a reason to be happy every day

5. Appreciate the little things

6. Look for the good and you'll find it

7. Take the time to get back to nature whenever possible, it rejuvenates you

8. Say I love you to the most important people in your life every day, start with yourself

9. Kiss your kids goodnight every night

10. Have more 3d conversations

11. Read a lot more, there is a wealth of knowledge out there

12. Spend less time online

13. Listen to your gut, it's only right 100% of the time

14. You have so much more to give in this lifetime, don't let your talents go to waste

15. Giving to others is good for the soul

16. Spend less money on "things"

17. Spend more time on creating meaningful relationships

18. Being nice costs nothing

19. Your worst day could be someone else's best day of their lives

20. Gratitude is the antidote to stress and worry, find something to be grateful for every day

21. You only have a limited number of breaths in this life, make them count

22. Don't compare yourself to others, it creates undue stress, anxiety and depression.

23. Never look down on someone else unless you're helping them up

24. Question everything

25. Don't follow the herd, be your own person

26. Remember you get what you ask for, don't set the bar too low

27. Nothing is permanent

28. Everything begins in thought but it only starts with an action

29. Life is too short to do stuff that you hate

30. Never be afraid to be original

31. Openness and vulnerability isn't a weakness its a strength

32. Always be a student of life

33. Seek out those who have gone there before you, stand on the shoulders of giants

34. No amount of wealth and success will make you happy if you are not happy with yourself to begin with

35. Seek joy and fulfilment in your career before remuneration

36. Never put work ahead of your family

37. Look after your body, it’s the only one you’ve got

38. Stand up for what you believe in

39. Simplify your life, there is really no need for 19 pairs of shoes, 4 tvs, 3 cars and a McMansion

40. If you don't build your dreams, someone else will hire you to build theirs

41. It’s ok to start over

42. Behind every screen is a human being, be thoughtful of what you say online

43. Love is a verb, a doing word, don't expect love from others, be more loving, do more loving things

44. Everyone is going through a battle which you know nothing about, be kind, always

45. Your history does not determine your destiny, you can re-write a new chapter in your life starting today

46. Don't watch the news, there's enough negativity to deal with without watching that stuff

47. Travel more

48. Create memories

49. Declutter

50. Donate your time to a worthy cause

51. Distance yourself from negative, toxic people

52. Exercise regularly

53. Invest in yourself before anything else

54. It takes time to build an awesome life, be patient

55. Put things into perspective. There will always be tough times. If you have a roof over your head, food on the table, family who love you and a few good friends by your side, you're a lot richer than you think

May you be blessed with health, wealth and an abundance of happiness in 2020

Adrian D’Amico shares some great Life Lessons and has recorded a series of incredible Life Lessons TV interviews in the past that are still very relevant today. To see more updates from Adrian you can like his FB page here

i hope you enjoy this list as part of our new #Plenty2020 initiative

Regards

Greg Vincent

A New Decade - A New Approach #PLENTY2020

I’ve decided to use the #PLENTY2020 hashtag as a constant reminder throughout 2020 to maintain a focused approach towards laying the key foundations for a great decade to come.

#Plenty2020 for me is about a year focused on bringing Joy, Gratitude, Fun, Excellence, Alignment, Compassion, Laughter, Enthusiasm, Inspiration, High Performance, Clarity, Courage, Appreciation, Respect, Energy, Vitality, Action, World-Class Service, Achievement, Contribution, Presence, Leadership, Responsibility, Prosperity, Consistency, Dedication, Fulfillment and most of all Love, as I work towards becoming The Best Version of Myself in each area of my life.

I know that life will happen and hurdles will appear along the path to test my resolve, but I now truly appreciate how important it is to play the long game in life as well as having an attitude of gratitude for each and every moment.

Over the Christmas break I have developed a brand new approach to my life which sets out my daily actions and I have a game plan already set for the next 12 months with checkpoints along the way which will help me stay on track.

It’s going to be an exciting journey and I’m looking forward to discovering what opportunities are ahead.

Feel free to adopt/follow the #Plenty2020 hashtag (or make up your own hashtag) and make the decision to set your own pathway in 2020 towards living an inspired, enriched, plentiful life.

Warm regards

Greg Vincent

Happy 2020: The Federal Govt First Home Loan Deposit Scheme Kicks-Off Today

Today is not only the start of a brand new decade, but January 1st 2020 also marks the first day of the Federal Government’s new First Home Loan Deposit Scheme.

The initiative is only available to the first 10,000 successful applicants and gives First Home Buyers to save paying Mortgage Insurance and is available to buyers throughout Australia but has Eligibility restrictions and Property price thresholds.

First Home Loan Deposit Scheme

“The First Home Loan Deposit Scheme is a Australian Government initiative to support eligible first home buyers purchase a home sooner.

It does this by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent.

The Scheme will support up to 10,000 loans each financial year, starting from 1 January 2020.

Eligibility

NHFIC has developed a tool to help first home buyers find out whether they meet the Scheme’s eligibility criteria. Click here to view the tool.

Property price thresholds

NHFIC has also developed a tool to help first home buyers find out the property price threshold for the suburb in which they are looking to purchase a property. Click here to view the tool.

How to apply

To view a list of participating lenders in the First Home Loan Deposit Scheme, click here.” - Source nhfic.gov.au

You can download the First Home Loan Deposit Scheme fact sheet here as well as a copy of FAQ’s here.

Whilst the eligibility for this scheme may not directly impact buyers looking to purchase acreage properties, but it’s anticipated that there will be a positive flow-on-effect as more buyers enter the market which will improve buyer confidence in the housing market and those looking to sell and upgrade onto acreage will sell faster and should have more money to spend on acres.

I hope find this helpful.

Regards

Greg Vincent