There are so many emotional motivations for people to buy property, however three main reasons people invest in property that stand out:

Capital Growth 

Simply put, this is how much the value of your property will increase over time. This isn’t something that happens overnight so be prepared to hold onto the property for a few years if you want to see significant growth. 

Rental & Investment Yield 

This is the amount of profit you make from rent after you deduct expenses such as upkeep and taxes. Rent prices in Australia are sky-high right now so you can expect excellent returns. 

Tax

There are plenty of ways to save on your tax bill if you invest in property. You can claim expenses such as renovations and capitalise on negative gearing by offsetting any losses you incur on your property against your taxable income. 

Perhaps you have another reason you are thinking about property investment? Or, one of the above is your motivation? Let's discuss!

Think about the last time you went grocery shopping. 

I bet you spent at least a few minutes comparing brands and deliberating on which products offered the best value for money.

If we expect that level of choice in our supermarkets, why wouldn’t we expect the same from our home loans? 

A broker’s job is to do the comparing for you. Not only are they experts but they have access to a huge database of lenders who are all wanting your business. A broker is in the position to negotiate with those lenders and find you the right value-for-money loan to fit your lifestyle.

As mortgage brokers we have: 

• Has access to more lenders, meaning you’re more likely to hear a ‘yes!’
• Is specifically trained in mortgages and knows how to structure your loan to suit your goals
• Acts as your own personal banker, guiding you through every step of the home loan process
• Will be your broker for life! You’ll receive ongoing help and advice whenever you need it during the life of your loan 

Helping people just like you to find the right home loan is my passion. If you’d like to talk to me about how I can guide you through this journey, feel free to contact me or click the button below so I can schedule a meeting!

Over the years I have helped hundreds of people manage their finances and find the right home loan.

It’s common knowledge that after a few years, your original loan won’t be as competitive as it once was so it’s worth scoping the market to see what else is on offer.

This process is known refinancing and is the act of replacing an existing home loan with a new one.

People typically refinance for one of four reasons:

• To get a better interest rate and lower their weekly repayments
• To access their equity for future investments
• To renovate
• To consolidate debts

While changing your home loan may lead to lower interest rates and more flexible features, it can also come with additional costs so it’s essential to calculate both the savings and the expenses involved. 

To find a home loan that suits your current financial situation and to see how much you can save, feel free to reach out!

​This afternoon, the board of the Reserve Bank of Australia met for the first time in 2021 and rang in the new year just as it left the previous one – with no change to the official cash rate. It remains at the all-time low of 0.10%pa. 

So, what is the Australian economy likely to be in 2021?

Considering the year that 2020 was, the Australian economy has fared better than most countries across the globe. Despite bush fires, pandemic, lockdowns and the inevitable economic hiccups that came with these.

A recent Deloitte report says “2021 looks set to continue the recovery in sectors smashed by the lockdowns and border closures of 2020, allowing the likes of accommodation, food, entertainment and airlines to continue to climb back from the abyss.”.

The same report indicates Australia’s economic recovery will be on the back of consumers, who are predicted to lift their spending by 6 per cent.

And then there’s the housing market.

Australian house prices are set to rise to record highs. The latest figures from CoreLogic show national average property prices are 1% higher than pre 9 pandemic and 0.7% higher than the previous September 2017 peak. The increase has been across the board, with every city and broader region recording a rise in January.

With more people working from home in 2020, the realisation that the sea/tree change they’ve been dreaming of can be a reality has seen thousands packing up their city life and making the move. The result – demand for property outside the capitals has never been higher, and there are more city properties on the market.

With interest rates at an all-time low, is 2021 the year for the change you’ve been dreaming of? Whether you’re upsizing, downsizing, a first-time buyer or just someone who wants a better deal on their mortgage, give us a call – we’re here to help.

First Home Buyer, looking for some tips to get you going in the right direction? Here are a few things to know that we talk to lots of our first home buyers about, to get them on the right track!
​

1. Speak with your broker... there are a few little costs, that you don't want to find are surprises, to allow for in your deposit.... are you going to need to pay Lenders Mortgage Insurance? What about conveyancing costs? Not sure what to allow for these (or how to avoid Lenders Mortgage Insurance if possible)? We know, speak to us.
2. Run a tight ship... more and more lenders now assume that your living costs, will continue and are not negotiable... for example, you might be hitting the town a little more at the moment, with the knowledge that when you buy, you will tighten your belt, and run a more efficient budget... but the banks won't see it like that.... so, tighten the belt now, and show that you can stick to a realistic budget over a 2-3 month period, it will make the application for finance run more smoothly, and the bank will likely ask less questions!
3. Much like point 2, don't lean on your credit card too much.... credit cards are unsecured finance, and while it is logical that you might use and pay out the balance in full each month to accrue points or similar, a credit card that has a balance that is increasing each month, indicates you may be spending more than you are making... Remember, that sometimes, you might use your credit card to pay off say whitegoods over a period of time, but, for incidentals, probably not a great idea to carry forward over multiple months (not to mention it will save you a packet in interest!)
4. Got any other lines of credit, unused credit cards, personal loans, and even AfterPay? An important lesson to learn, is that the banks will assume that you can max out these facilities any time, even if you haven't used them in a long time, and will assume the maximum due payment... AfterPay repayments, given they are over a short period of time, often really hurt borrowing capacity! So, if you don't need it, get rid of it... it will improve your credit score too!
5. Remember, that for every $700 of possible unsecured credit repayments each month, this will wipe out around $100,000 in borrowing capacity for property... in real terms, a credit card with a $15,000 limit, will wipe out $150,000 in borrowing capacity for that new property... if you don't need it, get rid of it!

Got more questions? Feel free to book a meeting and let's chat!

Application & establishment fees, stamp duty + more.

When taking out a mortgage, many people forget to consider the associated fees and expenses. Here are some of the extra costs that you’ll need to consider when you take out a home loan, however we have ways to allow for these costs by providing estimates, and even minimising these costs in some instances too!

Home loan application fees
Most lenders charge a home loan application fee. This can range from loan to loan, and covers:

• Loan contracts 
• Property title checks
• Credit checks
• Attending a settlement

Mortgage fees and costs

• Mortgage establishment fees – Lenders generally charge a mortgage establishment fee – a fee for setting up a mortgage.
• Property valuation – A third party chosen by the lender, is appointed to determine the value of your land and improvements.
• Mortgage registration – Your Mortgage deed needs to be registered with the government.
• Mortgage stamp duty – Some State Governments charges stamp duty to register your mortgage.
• Lenders mortgage insurance – If you don’t have 20% of the purchase price or the value of the property, the lender will require you to pay for a lenders mortgage insurance policy that covers their risk in the event you default on your repayments.

Property Fees and costs

• Building, Pest and Electrical Inspection fees – It’s wise to have your property inspected for any structural or electrical problems and for pests (e.g. termites).
• Stamp duty – Governments charge Stamp Duty to transfer the ownership of a property.
• Registration of transfer fee – The new owner of the property needs to be registered at the Land Titles Office.
• Legal fees – You generally need to pay a Solicitor of Settlement Agent to handle the transfer of ownership of the property on your behalf
• Home & contents insurance – Most homeowners insure their home and contents against a range of threats: burglary, fire, storm, etc. Lenders insist that your property is insured while you have a mortgage.
• Life and income protection insurance – Borrowers should consider protecting their incomes and themselves while they have a mortgage.
• Utility costs – Connecting electricity, gas and telephone can attract a fee.
• Council Rates – Your local council charges rates to cover garbage collection and a host of other services.
• Water Rates – The water corporation charges rates for the supply and upkeep of water to your property.
• Body corporate fees – If you buy an apartment or Strata Titled property, body corporate fees are charged, and some fees can be significant – particularly if the building is in need of a major work (e.g. concrete cancer, security upgrade, new hot water system, etc) or if there are lifts, pools and other communal facilities.
• Maintenance costs – Don’t forget to make provision for regular maintenance on your home – even if you decide not to undertake significant renovation.

To learn more about the hidden costs of buying a home, talk to us!

Feel free to reach out and book a meeting!