Paul Glossop: Okay guys, welcome to Pure Property Investments one on one. Today I am here with Aaron Christie David. Aaron is the principal of Atelier Wealth. He’s a finance expert when it comes down to structuring mortgages for both owner-occupiers and investors.
What we want to talk about today if you don’t mind Aaron is the probably from the investment perspective and we said a fair bit at Pure Property Investment and I am sure you do as well, where as first time investors, they don’t necessarily mean to be that they’re young but first time investors with a small deposit looking for help and trying to figure out how do I access or jump into the property game with a limited amount of cash.
Aaron Christie-David: Yeah, sure thing. I think it’s very exciting sitting in front of a first-time investor. The nerves, we hear a lot about “rent-vesting” which is a very popular term. What is that? It’s the notion that you rent where you want to live and buy where you can afford, which is a really good idea to get your foot in the market as well.
So, we look at their options. We sort of put up two or three options really. You could go into deposit and maybe pay some mortgage insurance or maybe you can get into a five or ten percent deposit, pay some mortgage insurance, that gets you in the market. The 2nd option is if it is an option for you, a guarantor loan as well.
Or maybe relying on the equity Mum and Dad’s property to gain access to buy that first property which then can reach that 20 percent deposit that you may not have. The third one is we set ourselves maybe a six or twelve-month goal as well to say. Right, here is much is the deposit is that you need. Let’s work backwards inside your budget to see how much you can save realistically over maybe six and twelve months and that way, you can get your foot in the door as well.
Paul Glossop: Perfect mate. And I think those three things that you spoke about there, one being, look if you got a certain amount of cash right now and you’re saying, “Okay, I’ve got this cash, what can I achieve?” And obviously, you’d sit on the other side of the desk and say, “Look, based on that, based on your income, based on your expenditure, here is about where your borrowing capacity sits. The 2nd one is saying, if we can say, we take your deposit plus there is an opportunity to get you a guarantor loan as part of that, then that might tip up the ability for you to say, you can avoid things like lender’s mortgage insurance, you might get a larger deposit and allow you to buy an asset that maybe is a higher performing asset or thirdly, and if it is either of those two potentially, don’t really fit the bill at this point and time, setting a strategy and saying, if you do want to buy that property, you’re sitting here with this amount of money at the moment and we I need to get to here. Then, setting that strategy in say the next six, eight, twelve months, whatever it be, here is how much we need to save. And then setting a plan in place to save that money and to get you into that position.
But sometimes, all we need is a kick in the butt realistically and getting someone to partner with you. And that is what I really say a lot of times. Like you said, I love sitting down in front of first-time investors because there are so many unanswered questions but there’s a lot of excitement, there’s a lot of drive. And the key is making sure that you don’t get disheartened if you are told no or if you’re told not right now. It doesn’t mean it’s never. It also means, now is the time to say potentially get a plan in place, so you can execute it when the time does come.
Aaron Christie-David: Even now, it’s actually having a plan in place. Saying that I want to buy an investment property isn’t a plan. That is just an aspiration. Sit in front of a person that has done it or have tread that path and I think that will set you up to succeed as well.
Paul Glossop: Absolutely. And it’s exactly like you said, I’m so excited to work with people like yourself, who understand it, who invested in the past; who also understand the finance game and saying, “Guys, you don’t need to be disheartened, or you don’t need to say that buying a property is a plan or is a strategy.” Because there are literally half a million properties transacted every year in this country. And I dare say a lot of them were bought without any actual sit down or consideration as to why they make the right investment at the right time, so.
Guys, if you do want to get in touch with Aaron for any reason in regarding finance structures or just discussing your ability to borrow, feel free to contact himself and his team at the contact details at the bottom of the screen. And from our property perspective either owner-occupier or investing, further contact us, we’re always here to help. Okay? Cheers!