News and Blog

News and Blog

Buy Now Pay Later

Nov 17th, 2020 • Industry News

Buy Now Pay Later - the hidden danger potentially stopping you from owning your own home

Buying a Tenanted Investment Property

Oct 31st, 2018 • Industry News • Investments

Buying a Tenanted Investment Property

PROPERTY - CHECKLIST FOR BUYING A PROPERTY

Aug 29th, 2018 • Industry News • Home Loans

PROPERTY - CHECKLIST FOR BUYING A PROPERTY

BUYING A CAR FOR THE FIRST TIME?

Aug 17th, 2018 • Industry News • Vehicle Finance

What you need to Consider when Buying your Second Property

Aug 1st, 2018 • Investments

Owning two properties is a great financial ambition and with Australian house prices on the rise, doing so has great potential to improve your financial situation in the long term. But please don’t be fooled - just because you have done it once before doesn’t mean it will be easy! Buying a second property also requires hard work, discipline and effort. Here are some financial pointers to help with the process of buying your second property.

Are You Better off Buying an Established Home or a New One?

Jun 14th, 2018 • Home Loans

It doesn’t matter whether you’re a first home buyer, next home buyer or a property investor, deciding between a brand new home and an established one is an important choice that every property buyer needs to make.

To Rent or Buy?

Jun 8th, 2018 • Industry News • Home Loans

 

Pros of renting

 
  • You can live wherever you want

    Career and lifestyle are important considerations, whether you’re single or a family. Renting a place in a suburb or location that is close to your work, friends and ideal lifestyle amenities (like schools or shopping) can often be much more affordable than buying there.
     
  • Flexibility
    If your work or lifestyle require you to be ready to up stumps and move at short notice, then renting gives you greater flexibility and mobility. Or if your situation changes and you find you need less expensive digs, you can quickly find a rental that fits your new budget.
     
  • Lower costs and less hassle
    Renting is usually cheaper than buying and you won’t have to worry about ongoing expenses like rates, body corporate fees, maintenance, repairs and building insurance.
     

Cons of renting

 
  • The ‘dead money’ argument
    Have you ever heard the phrase ‘rent money is dead money’? Many argue it’s much better to pay off your own home loan than someone else’s. It’s certainly true that capital gains on a property can potentially grow your wealth, and you can look forward to living ‘mortgage free’ within 25 – 30 years.
     
  • Restrictions
    Common complaints from renters include living with the landlord’s décor, not being able to put hooks in walls, restrictions on pets, or even the number of people who live with you.
     
  • Uncertainty
    Rental properties don’t offer long-term certainty. Moving can be expensive and you’re vulnerable whenever the lease ends or the landlord decides to renovate or move back in.
     
  • Inspections
    Most rental properties require you to submit to inspections by the landlord or agent every six months. These can be stressful and inconvenient.
     
What the statistics say
* Based on the 2016 census
Percentage of Australians renting 30.9%
Percentage of Australians who own their home outright 31%
Percentage of Australians paying off their home 34.5%
 

Pros of buying

 
  • Freedom to do what you like with the property
    Buying your own property means you have the freedom to do whatever you want with it. You can decorate any way you like, and add value by renovating.
     
  • Capital gains and wealth-building opportunities
    You’ll own an asset eventually, and while you’re paying it off the property could potentially increase in value. What’s more, you may be able to use the equity in your home to build wealth through property or other investments.
     
  • Certainty
    You’ll have the security and certainty of knowing where you’ll be living for years to come. You’ll also obtain a degree of financial certainty – because you’ll own a substantial asset.
     

Cons of buying

 
  • Affordability constraints and costs
    High housing prices and low wages growth have made buying difficult for some people. However, there are incentives available like the First Home Owner Grant to help you get started. Ask us if you’d like to know more.
     
  • Added responsibility
    Becoming a home owner means you’ll have new financial responsibilities (such as paying your mortgage repayments and bills in a timely manner).
     
  • You may not be able to afford to buy where you want to live
    As a home buyer, you may have to compromise on location or property type to find a property that suits your budget at first. However, once you get a foot on the property ladder, the potential capital gains could help to make your next property purchase more ideal.
     
Have you considered rentvesting?

Just because you want to live close to the action doesn’t mean you have to forfeit your dream of owning property. Rentvesting is a strategy that allows you to live where you want and buy an affordable investment property elsewhere! You could potentially get a foot on the property ladder now, enjoy the benefits of capital growth and having a tenant to help you to pay the mortgage, but still live wherever you like.

Talk to us about what’s right for you

Whether to rent or buy comes down to your personal situation and goals. If you’ re considering buying, then talk to us and we’ll help you decide what’s right for you. Keep in mind that even if you don’t have a 20% deposit saved, there may be other ways to get you over the finish line to buy a home or kick off your rentvesting strategy. We’re happy to explain everything you need to know, so please get in touch today!

Cut Your Expenses and Increase Your Savings

Mar 29th, 2018 • Industry News

Top Ways to Cut your Expenses and Increase your savings

What Insurance do you need to know about when Buying a Property?

Dec 12th, 2017 • Industry News • Home Loans

Income Protection

This type of insurance provides an income safety net should you become sick or injured and are unable to work and make your home loan repayments. You may also like to consider trauma/critical illness cover, total and permanent disability insurance and life insurance – that way if you are unable to go back to work, you won’t lose your home.

Mortgage Protection

Mortgage Protection insurance covers the cost of your mortgage repayments if you die, or become seriously ill. It should be noted that it is only meant to cover your mortgage repayments and not any other expenses for you or your family. It may be a wise choice if you already have some other kind of life insurance – say with your super plan.

Building & Contents

Building or home insurance protects against the cost of rebuilding or repairing your home from things that are outside your control, like fire or natural disasters. You can opt for total replacement cover (to rebuild your home as it was prior to the event), or sum-insured cover (coverage up to a certain amount). When you buy a home, your mortgage broker will most likely recommend that you insure the property before settlement day.

When choosing your policy, make sure you have the right amount of coverage, as well as the right type of insurance for your actual needs. Talk to us, as we are an invaluable source of information to help you determine this.

Contents insurance protects your belongings, including carpets, rugs and curtains, in events such as fires, storms or theft. Often it will be bundled together with home insurance. Many people consider it a must-have to protect from those smaller disasters – even a contained kitchen fire could render your home unliveable until you can repair the damage!

How can your mortgage broker help?

We can access some of Australia’s most respected insurance providers, and offer you a competitive price on your insurance needs. What’s great is that we can do it all - from setting you up with a home loan that meets your financial circumstances, and also help you to arrange the right insurance to protect you and your family. You’ll find we can offer a range of options and make it easy. You may also be able to save by bundling insurances together, so please get in touch today!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

Right Time to Buy Your First Home

Nov 13th, 2017 • Industry News • Home Loans

Objection 1: "I don’t have a big enough deposit"

If you’ve been working hard to save a deposit and feel like it’s never going to be big enough, we have some exciting news for you! Size doesn’t always matter, especially not in this scenario. Being approved for a home loan is not necessarily dependant on how much of a deposit you have, but rather your capacity to repay the mortgage. There are all sorts of options available to aspiring homeowners who don’t have a 20% deposit.
Some lenders still offer home loans for up to 95% of the purchase price. The borrowing criteria can be more stringent than other types of loans, but if you have a clear credit history, stable employment, a solid income, minimal debt and are in a good asset position, you may qualify. Most home loan providers will want to see evidence you’ve saved at least 5% of the purchase price, and you may have to pay Lenders’ Mortgage Insurance with this type of loan – but you’ll have your foot on the property ladder! Speak to us to find out whether this kind of loan could work for you.
Another way to get a foot on the property ladder could be to ask your parents or a family member to be your guarantor. This is when they use the equity in their property as security for your loan. The right time to buy your first home is as soon as you can afford to do so!

Objection 2: "I think the market will downturn"

Whilst the property market does go up and down in cycles, "timing the market" is not as important as "time IN the market". The sooner you buy a property, the sooner it will be possible for it to start to experience capital growth (which is the term we use to describe how much your property goes up in value whilst you own it).
There is always a possibility that your property will go down in value after you purchase it. However, you need to remember it has only gone down in value ‘on paper’ – you won’t actually lose any money unless you sell it. Market fluctuations are common and it is likely it will have recovered in value by the time you want to sell.
Choosing the right home in the right location can help protect against property market fluctuations and improve your chances of long-term capital growth. When you locate a property you’re interested in buying, we can help you check its capital growth potential with a free property market report – so please ask us.

Objection 3: "I can’t afford a home where I would want to live"

Most people don’t get to buy their dream home the first time around - it’s a goal you can work towards once you get on the property ladder. If you can’t afford to buy your dream home in your preferred location, you could look for something in another location, consider a smaller property that’s more affordable, or opt for a fixer-upper that has potential but just needs a little love. Another option that’s becoming increasingly popular is to rent-vest – rent where you want to live and buy an investment property somewhere else. That way, you can grow your nest egg to enable you to eventually buy the home you want.
There’s no time like the present to chat with us about your plans and finance options. Please get in touch and we’ll explain your borrowing capacity, home loan options and help you get pre-approval on your loan so you can start looking for a property to buy sooner.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.