What is Future First Investment Services and what do you do?
Future First Investment Services is a Brisbane based Wealth Creation Company providing basic mortgage broking services, specialised investment finance services, tax reduction methods, retirement planning, and wealth creation strategies focused around property investment for large and small investors alike.
Future First's Investment Strategists are fully qualified and trained mortgage broking, finance structuring, and property investment specialists. They, in conjunction with our Finance and Property Consultants, will create for you a unique debt reduction, tax minimization, and wealth creation strategy designed around your own specific circumstances.
As a client of Future First, you will gain inside knowledge, property investment tips, and finance advice that will give you an enormous financial head-start after your very first meeting. We are experts in the field of finance and property investment and our service focuses on building a life-long relationship with our clients and their individual wealth creation plan.
What does Future First Investment Services NOT do?
Unfortunately Future First is NOT the company for you if you are desperately looking for services and advice in the following areas:
Here at Future First we would never put you off or persuade you to choose property over any of the investment vehicles listed above. In fact, we would encourage you to invest in at least one or two of these investment categories, along with your property investments, as part of a balanced portfolio. Put simply, here at Future First we help you to get the basics right first. We focus solely on mortgages, tax minimisation, and property investment, and we do these things extremely well because that's all we do!
How long has Future First been in the finance and property business?
Around 5 years so far. Our property reasearch and investment division was established in 2003, followed by our mortgage broking and finance division which was established in 2004. The Future First brand was established in mid 2007 to bring our individual specialist divisions together “under one roof”, in response to a huge demand from existing property and finance clients looking for a one-stop-shop for their finance, tax, and property investment needs.
Furthermore, the Co-Directors of Future First have a combined 30 years experience in the finance and property industries and have a demonstrated track record of success. All three Directors, along with many Future First team members, are active property investors and believe strongly that property investment is one of the best methods of wealth creation.
I have a Mobile Consultant coming to my home for a FREE consultation – what should I expect?
You should expect to have a relaxed and informal chat with a professional, who will help you establish exactly what you need to know to start achieving your goals and get your finances in order. Our Mobile Consultants are not financial planners or accountants, and they are not coming to your home to sell you any financial products or whacky gimmicks. Your Mobile Consultant will quite simply be helping you to decide whether Future First is a company that you believe will be able to help you achieve your long term goals. The Mobile Consultant will also assess your suitability as a potential client for Future First, as unfortunately we cannot help everybody.
When is the best time to buy an investment property?
Whenever you can afford it.
The mistake a lot of first time investors make is believing that there is a right and wrong time to invest in property. Unfortunately, this belief is far more likely to find investors missing out on great long-term opportunities because they simply waited too long, then it is to find the investor the perfect property at the perfect time. THERE IS NO SUCH THING AS THE PERFECT PROPERTY.
As an investor your attention should be focused on “where” (Location, Location, Location) rather than “when” to invest in property. There are always opportunities for smart investors, regardless of timing, as long as you understand the basic fundamentals of property investment in an ever-changing market.
I've only got about 5 to 10 years before I retire. Have I missed my chance with property investment?
No, absolutely not. Thanks to capital growth, you have 5 to 10 years to watch your investment property/ies increase in value and make you some extra spending money for retirement. Seeing as good properties in the right location increase in value at an average of 7% to 10% per year, chances are the investment property you purchase today will be worth double what it is now when you retire in 10 years.
Or, you could always do absolutely nothing at all for the next 5 to 10 years and have absolutely nothing extra to cash in for retirement. The next 5 to 10 years are going to pass whether you invest in property or not. So it's really quite simple: you can either own a piece of real estate that is increasing in value over the next 5 to 10 years and making money for your retirement, or not. The choice is yours.
Isn't property investment only worth while for high income earners or wealthy people?
No. Around 70% of property investors in Australia are on incomes between $50,000 and $60,000 per annum. And you might find it interesting to note that over 90% of all millionaires in Australia become wealthy through property investment, or have a large chunk of their wealth parked in real estate.
Do I need a large deposit to purchase an investment property?
No. In fact, in most cases you don't need a deposit at all. If you have owned your own home for a few years, you will have paid off some of your mortgage, and there is a good chance that your property has increased in value too. Instead of using your savings for a cash deposit, the Bank will allow you to use the equity built up in your home to cover the deposit and any costs associated with your investment property.
What if I can't find a tenant for my investment property?
Keeping vacancy to a minimum is important for the successful outcome of any property investment. As we have already discussed in the questions above, LOCATION is key in nearly all aspects of successful property investment including minimising your vacancy rates. Put simply, it is never really difficult to find a residential tenant for properties in the right location. In fact, the average vacancy rate for properties we source for our clients is around 1%. In other words, on average there is a gap of only 4 days per year between one tenant moving out and another tenant moving in.
It is also important to note that around 70% of Australians own their own home. This means that 30% of the Australian population are renters. This provides a huge pool of around 6 million tenants who are housed in rental accommodation. Again, it is never really difficult to find a tenant for properties in the right location, and as a client of Future First we are going to do everything we can to help you source good long-term tenants.
What if I become too sick to work or lose my job?
As a client of Future First we are going to ensure your finance structure is set up correctly to protect against any unforseen circumstances. Your investment loans should be set up with a cash buffer, to give you a 6 to 12 month safety net to fall back on in case of injury, sickness or unemployment. In the worst case scenario, if you were unable to work again, you would simply sell the property. In addition, as a client of Future First we can point you in the right direction of any additional insurance you feel you may need to protect your income and lifestyle.
What about rising interest rates?
There is absolutely nothing you can do to stop the government increasing interest rates, but there are many things you can do to protect yourself from taking a hit. If your finance structure is set up correctly in the first place, even before you think about what property to buy or where to buy it, you will be able to protect yourself from even the most drastic rise in interest rates.
Think about it: as interest rates rise, some first-time investors tend to “freak out” and the doomsayers scream “sell, sell, sell”. And yet, there are thousands of smart investors among us who still seem to make millions of dollars out of property investment every year no matter what the interest rates are doing. So how on earth do smart investors still make millions even when interest rates are through the roof? Well, that depends on your own specific financial goals and circumstances. If you are worried about interest rates you need to Contact Us for a FREE session with one of our trained consultants.
What if my investment property is damaged by bad tenants?
One word: Insurance. All the major insurance companies offer comprehensive landlord insurance policies which cover most forms of damage caused by tenants. For a little bit extra you can even extend the policy to cover any loss of rent due to damage. And of course the small cost of your landlord's insurance policy is a tax deduction along with all other rental expenses associated with holding your property.
Who will take care of the day-to-day management of my investment property?
It is in your best interest to appoint a professional property manager to manage your property (find good quality tenants, manage the rental bond, collect your rent, coordinate maintenance and inspections etc) for you, rather than trying to manage the property yourself. As a client of Future First you will have access to the very best property managers, who are highly trained and qualified individuals, with an excellent track record in your chosen location.
What if real estate prices don't go up?
As we have already discussed in the questions above, LOCATION is key in nearly all aspects of successful property investment including achieving good capital growth. Put simply, properties in the right location will always increase in value over time. We recommend property to investors who have a mid to long term plan (5 to 15 years) as, historically, prices fluctuate but always go up over time.
But don't take our word for it; take a look at your own home. Are you surprised by how much it has increased in value since you bought it? And if you are still not convinced, take a look at the last 100 years of history in Australia and you will see that good properties in the right location increase in value at an average of 7% to 10% per year, meaning the investment property you purchase today could be worth double what it is now in 10 years.
My accountant gives me all the advice I need, why should I talk to Future First about property investment?
Because in the same way your accountant is an expert at their job (preparing your tax return after you have provided them with all the figures), we are experts in the field of wealth creation through property investment. Generally speaking, accountants will be able to answer your questions competently, but any professional accountant who has your best interests in mind, would always suggest you seek out a specialist like Future First to help you with your property investment goals.
Ask yourself this question: Is my accountant, or any other person I am relying on for property investment advice (lawyer, financial planner, bank manager, mortgage broker, real estate agent, friend, workmate, brother, sister, father, mother, auntie, uncle, dog, cat, or goldfish), a multi-millionaire property investor with an extensive range of investment properties in their own personal investment portfolio?
If you answered YES to this question, these are the people you need to talk to, and you probably don't need a company like Future First if you can convince these people to give away all their secrets.
If you answered NO to this question, then you need to speak to Future First because many members of our specialised team are experienced property investors with personal portfolios worth millions of dollars. We live and breathe property investment, we are property investors ourselves, and we work with property investors from all walks of life every single day. We are armed with personal experience and expert knowledge to guide you step by step in the process.
My parents always taught me that borrowing money was a bad idea, were my parents wrong?
Your parents were right in telling you not to borrow money for cars, boats, clothes and other consumables which ultimately end up worthless due to depreciation. However, borrowing money for appreciating assets, or in other words assets that increase in value over time such as property, is a VERY powerful way to build wealth for retirement.
Can Future First's Finance Consultants get me a better loan from the bank?
In some cases yes, in others the advantages lie in getting the loan that best suits your mortgage needs or investment requirements. A bank typically has a limited range of loans to choose from: just the loans they offer. As a Future First client, we help you choose the loan that is right for you, rather than the loan that suits your bank. And to make sure we do our homework and always put your best interests first, we work with 40 different lenders and have 1200 different mortgage products to choose from! Contact Us now to enquire about a FREE session with one of our trained consultants.
How will Future First find a loan that's right for me?
Using our specialist software, your Finance Consultant can help you compare the loan products of 40 different lenders, quickly and easily. Your Finance Consultant will tell you about the loans that are right for your needs. We will review the details of each loan with you and help you choose the one that's right for you.
We will explain clearly in plain English all the features and costs of the chosen loan and tell you how much the repayments will be. Contact Us now to enquire about a FREE session with one of our trained consultants.
How much money can I afford to borrow?
How much you can afford to borrow to buy a home or an investment property depends on a range of factors relating to the property itself, your lifestyle requirements and other personal circumstances. There is no point living in the home of your dreams, or building a portfolio of investment properties if you can't afford to do the other things you really enjoy doing!
The best thing you can do is speak to a Future First Finance Consultant about planning a budget, and have them work out your comfortable borrowing capacity based on your own specific circumstances. If you would like to speak to a professional about your mortgage, or an investment loan, Contact Us now to enquire about a FREE session with one of our trained consultants.
Who does the paperwork?
Your Finance Consultant will help you complete the loan application form. We will professionally package your application with all the supporting evidence and lodge it with your chosen lender. Future First has programmed each of the lenders' lending criteria into its software so that you don't waste time applying to a lender who will assess your application less favourably. Contact Us now to enquire about a FREE session with one of our trained consultants.
Do I have to chase the lender or do you do that?
We will take the hassle out of the application process by managing it on your behalf, right through to settlement. We will help you with any questions that you may have and, if there are any problems, we will chase up the lender for you. Contact Us now to enquire about a FREE session with one of our trained consultants.
Are there any risks associated with switching loans?
Making the decision to change loans or refinance is difficult as there are literally hundreds of loans available from many different lenders. On top of that, there are other factors to consider such as how long do you want your loan period to be or how much you can afford each month? Some loans have early pay out penalties and other costs you will need to consider. Sometimes re-financing is not the answer, so speak to one of our Finance Consultants to work out if refinancing is the right option for you. Contact Us now to enquire about a FREE session with one of our trained consultants.
Can I still get a loan even if my income is irregular?
Yes, a “Lo-Doc Loan” is the answer for you. In the past an irregular income, or lack of records, could make getting a mortgage or investment loan very difficult. Fortunately, your Future First Finance Consultant can tell you about a range of options, such as Lo-Doc Loans and similar loan products designed for borrowers in your situation. Contact Us now to enquire about a FREE session with one of our trained consultants.
