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A broker has partnered with financial planners to devise a “fun and innovative” decision-making model for first home buyers, aimed at helping them onto the property ladder.
After identifying that the first home buyers’ segment of the market required additional support and assistance, Sydney-based broker and CEO of CFC Finance George Kanellis devised a structured model of “strong [and] robust” decision-making for FHBs called ‘First Home Freedom’.
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“We take our clients through a comprehensive decision analysis process, which is both innovative and fun for them, and allows them to understand their position, the opportunity, the risks and make better quality decisions,” Mr Kanellis told The Adviser.
“The result is a safe outcome or, as we like to say, ‘Buy your first home and still have a life’,” he said.
Mr Kanellis explained that the structure of the process is based around FHBs’ own vision for their future.
“We start with discussions around vision, which changes the decision from purely mathematical and financial, which is fairly dry, to actually becoming a creative process for them,” he said.
“The decisions need to include a whole list of variables that are relevant to their financial future, which includes current and future income expectations, how it might change over time, as well as how the cost of money may change over time. We model the impact of increasing or decreasing rates, and analyse the clients’ current spending.”
He added that he is able to implement the model with the support of a team of professionals that help deliver the service.
“It includes property professionals, financial planners, accountants, personal insurance brokers ... because all of these aspects are relevant and important to first home freedom,” he said.
Mr Kanellis explained that spending the extra time to help FHBs make sound decisions has garnered good results for his business.
“We’ve got clients who have been able to work through saving for a deposit, buying their first property, using smart property strategies, push the value of that property and then be able to buy their second within 24-36 months depending on the client,” he elaborated.
