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New year, new home? If this is the year you plan to get into the property market, there are a few things you can do to help you reach your home-ownership goals.

Below are five things to consider to make your property search.

Understand your borrowing capacity

The amount of money you can borrow will determine what properties you can potentially buy. This should be one of the first things you work out so you can narrow, or widen, your property search.

There are several factors that will affect how much a lender is willing to loan you. These include your income, living expenses, debts, assets, savings and the value of the property you want to buy.

The lender’s main concerns are your ability to secure the property with a deposit and your ongoing ability to make repayments.

Save your deposit

It takes time and discipline to save for something as sizeable as a house deposit. Saving a large deposit, at least 20% of the property’s value, shows a lender your ability to save and manage money over time. This is also known as genuine savings.

Lenders will take your deposit into consideration when calculating your loan-to-value ratio (LVR). The higher the LVR percentage, the higher risk the loan is for the lender.

You can reduce your LVR by saving a larger deposit or buying a less expensive property.

A 20% deposit will also save you from paying lenders mortgage insurance.

Find out about government incentives

If you’re a first-home buyer, you may qualify for incentives that will make it easier for you to get your foot on the property ladder.

The federal government’s Home Guarantee Scheme supports eligible low and middle-income first-home buyers so that they can purchase a home with a deposit of as little as 5%. The state and territory governments also offer the First Home Owners Grant and other state-specific grants and schemes.

We can help you find out what incentives you’re eligible for and guide you through the application process.

Get us to organise pre-approval

Pre-approval is an indication of what a lender is currently prepared to lend you. There’s no obligation for you to take out the loan and you still have to go through an application process to secure it.

There are several reasons why getting us to organise pre-approved finance is beneficial for your property search. Firstly, it will give you peace of mind and take away some of the uncertainty around what finance you will have access to when the time comes to make an offer.

It also shows sellers you are a serious buyer who is confident in the amount you can spend and able to move quickly to secure your dream home.

Find the right property

Now that you know what you can afford to buy and what incentives you’re eligible for, you can base your search around those parameters. Rather than going to dozens of open homes, you can focus your efforts on a smaller number of properties that suit your needs and budget.

Armed with your pre-approval, you can compare what your money will get you in different areas and weigh up your options. For example, would you rather buy a larger home in a more remote suburb and have a longer commute, or live in a smaller property that’s closer to work, family or your children’s school?

With your finances in order, you’ll be able to jump on the right property when you find it.

We’re here to help

Whether you’re looking to buy your first home, your next home, an investment property or refinance to a home loan that better suits your needs, we can help.

The new year is when many of us hit the reset button. It’s a chance to reflect on the past 12 months, reassess priorities, and set new goals.

If you’re looking to create some better financial habits in 2023, here are some techniques to help you can get in control of your money.

1) Create a budget you can stick to

Extreme changes to your spending habits may appear to deliver immediate results, but they can be difficult to maintain over the medium and long term.

Focussing on a range of budgeting strategies that are sustainable will greatly increase your chances of sticking to them.

Automate payments and savings deposits so money moves to where it needs to go before you have a chance to spend it.

Regularly check the progress of your mortgage and savings accounts to stay motivated and reinforce good habits.

2) Use apps to manage your money

Gone are the days when you needed to set up a complicated spreadsheet to track your spending. Budgeting apps such as Mint, YNAB and PocketGuard make it easy to categorise your spending and quickly review your finances.

If an envelope-based budgeting system has worked in the past for you, then Goodbudget is the digital equivalent which allows you to assign chunks of your income towards different spending categories.

Some budgeting apps, including Goodbudget and Fudget, also give you the option of manually entering your account balances rather than syncing to your bank accounts.

3) Cut back on non-essentials

Do you really need that takeaway coffee on your way to work? Look at your discretionary spending and where you can cut back or swap something for a cheaper alternative.

From making your own morning coffee and meal-prepping lunches to cancelling that streaming service you barely use, a series of small changes can add up to big savings without significantly impacting your lifestyle.

Seek out free activities and entertainment like a walk on the beach, a picnic at a local park or a family game night.

4) Consider consolidating debt

Debt consolidation is when all existing debts are brought together into one new loan. This can make it easier to pay back debts or to reduce monthly liabilities to improve cash-flow.

Other reasons to consider debt consolidation are the simplicity of one repayment, potential savings on interest rates and fees, and more manageable repayments.

We can help you assess whether debt consolidation is a suitable option for you.

5) Talk to us about your home ownership goals

Buying a property is one of the biggest purchases you’ll make in your lifetime and one that could set you up for financial security. Getting in control of your finances can assist in saving for a deposit and qualifying for pre-approval with a lender.

We can help you determine your borrowing capacity, weigh up the pros and cons of fixed versus variable rates and ensure the home loan application process is as smooth as possible.

Whatever financial goals you have for 2023, we’re here to support you.

The Great Australian Dream of home ownership is still alive, but it’s evolving.

With rising costs of living and higher interest rates, rentvesting has become an increasingly popular strategy for getting a leg up on the property ladder.

Reinvesting is when you rent where you want to live and buy where you can afford.

Here are some things you should consider before deciding whether rentvesting is right for you.

The pros of rentvesting

Rentvesting can offer both flexibility and financial security. Here are some of the advantages of rentvesting:

• A leg up on the property ladder: Rentvesting allows you to get started in the property market with a smaller deposit and work towards buying the home you want.

• Lifestyle perks: Want to live in a trendy neighbourhood that’s out of your price range? With rentvesting, you could live the lifestyle you want and invest elsewhere.

• Flexibility: Renting gives you increased flexibility to move around if your circumstances change.

• Tax benefits: What can be great about owning an investment property are the tax perks. Many of the property expenses can be offset against your income.

The cons of rentvesting

Rentvesting isn’t necessarily a good option for everyone. Here are some of the disadvantages:

• No First Home Owners’ Grant (FHOG): If you decide to buy an investment property rather than a home, you won’t be entitled to either the FHOG or stamp duty exemptions or concessions for that property. These are for first time owner-occupiers.
• Added responsibility: Being a renter and a landlord at the same time means you’ll have multiple expenses to cover. In addition to paying your rent, you’ll have costs including council rates, property management fees, maintenance, landlord insurance, as well as your mortgage repayments.
• You won’t own your home: Renting means you don’t have control over how long you can stay in your property which means you may end up moving on a regular basis.
• Capital Gains Tax: If your investment goes up in value, you may be subject to Capital Gains Tax when you decide to sell.

Where to buy?

New analysis from Property Investment Professionals of Australia (PIPA) has identified the top five areas to rentvest in 2022:

1. Casey City Council (Melbourne)
2. Moreton Bay Regional Council (Brisbane)
3. City of Onkaparinga (Adelaide)
4. City of Sterling (Perth)
5. Penrith City Council (Sydney)

But with any property search, it’s important to do your research on things like capital growth potential and rental yield.

Like to know more?

If you think rentvesting could be right for you, speak to us and we’ll help you to explore the finance options to suit your needs.

We’re amidst the spring sales season, but what do rising interest rates mean for this traditionally busy period?

The pandemic’s peak profit-making period has now officially passed, with property prices still falling across much of the country.

However, with rapidly rising interest rates cutting the average Australian’s buying power by 20%, it’s important to understand how to negotiate like a pro when it comes to your spring property purchase. Here are our top tips.

Tip 1: Do your research

You’ll be in a better position to  make an offer or bid with confidence if your  local  property market knowledge is up to speed.

We have access to a range of reports that will help you cover your bases. Whether you’re interested in the latest suburb data, or an estimated valuation of a property, get in touch to find out how we can support your research.

Hint: CoreLogic’s weekly Auction Market Previews are a handy resource. They will help you keep your finger on the pulse during rapidly changing market conditions.

Tip 2: Get your finances in order

If you do find a bargain, you’ll want to be in a position to jump on it. Speak to us about organising pre-approval on your finance, so that you’re ready to go.

Pre-approval means a bank has agreed, in principle, to lend you a certain amount of money. Having pre-approval gives you confidence during price negotiations with vendors. It may also give you an edge over other buyers without pre-approved finance.

Tip 3: Find out why the vendor is selling

Understanding the vendor’s motivation to sell may give you an upper hand during negotiations. What type of settlement terms and deposits will be most attractive to them?

They may be moving interstate, or need liquidity fast, in which case they may drop their price for a shorter settlement.

Maybe they need an extra-long settlement while they find somewhere else to live?

Or perhaps a larger deposit would make you more favourable compared to other buyers?

Ask the real estate agent why the vendor is selling and use the information as a negotiation tool.

Tip 4: Get building and pest inspections done 

Building and pest inspections not only alert you to issues with the property such as termites and structural defects, they can also be used as ammo during price negotiations. You may be able to use the findings from the inspection to negotiate a lower sale price.

Talk to us 

Property prices are falling in many markets and there are plenty of opportunities out there for savvy buyers. Get in touch to organise pre-approval on your finance and be ready to buy.

The search for your dream property can be both exciting and stressful. From the inspections that kick everything off to putting in your offer and having it accepted, these are all stepping stones on the journey towards ownership.

It all culminates in the final step of the process – settlement day. Here’s what to expect and some tips to prepare for a successful property settlement.

What is settlement day?

Settlement day is the day ownership of a property is legally transferred from one party to another. Simply put, it’s the day you get the keys to your new home.

Your conveyancer will take care of the finer details and works with us for the finance. Meanwhile, you must also follow all sorts of regulations and procedures that they will explain to you, including those required by the lender and building insurance provider.

The date of settlement will be outlined in the sales contract. Your broker will work with the conveyancer in consultation with you to confirm the timing and review the contract before signing it.

What should I do before settlement?

There are several things you need to do ahead of the big day to avoid any last-minute surprises.

Firstly, it’s important to do a final inspection of the property to ensure you didn’t miss anything. Secondly, make sure you’ve organised building insurance, which should be done as soon as the seller signs the contract. Finally, check in with your conveyancer to ensure you’ve completed and submitted all of the necessary documentation to transfer the property into your name.

What happens on settlement day?

Your lender and conveyancer will take care of the final paperwork and financial transactions. They’ll work with the seller’s representatives to ensure the balance of the purchase price, along with any government fees and duties, is settled.

They will also check all necessary legal documents are completed and lodged with the respective agencies; and they will arrange the transfer of the certificate of title to your name and ensure the property is legally transferred to you.

Once the paperwork is completed successfully, the settlement is final. Congratulations! You are officially the new owner.

What can I do to ensure a smooth settlement?

To ensure a smooth settlement day, it’s worth seeking advice from professionals who understand the process.

As your Mortgage Broker, we can assist with organising pre-approval for a home loan and we’ll be there with you every step of the way.

Finding a reputable conveyancer who specialises in property law will ensure you understand your responsibilities and rights in terms of the settlement process. They will oversee the legal requirements and paperwork and, most importantly, ensure the title is correctly transferred, or conveyed, from the seller to you.

Finally, make sure you have a suitable settlement period in mind. We can discuss this with you, as settlement periods can range anywhere from 30 to 90 days. You may be able to negotiate with the seller before signing the contract to secure a date that works for you.

Ready to get started?

We’re here to support you through settlement and beyond. We’d love to be of assistance.

It’s no secret that paying off your home loan sooner can save you plenty. However, with cost-of-living pressures and rising interest rates, it can be hard to find extra cash.

A series of small changes applied consistently over time could put you on track to reach your goal sooner. Here are eight tips to help boost your savings.

Tip 1: Make a plan you can stick to

Rather than making extreme changes to your lifestyle and spending habits, focus on a range of savings strategies that will be sustainable. Consider cancelling those streaming subscriptions you’re not using, learn how to cook your favourite meals at home, or opt for a second-hand or DIY option rather than buying brand new.

Tip 2: Automate and separate 

By automating your savings and extra mortgage repayments, you move the money to where it needs to go before you have a lapse in willpower and spend it. Transferring your savings to an offset account may also help you save on interest charges.

Tip 3: Get a home loan health check 

Reviewing the terms of your home loan every two years may help you find ways to save on fees or loan features you don’t need. We can carry out a loan health check for you and help you weigh up your options.

Tip 4: Create a budget and check your progress regularly 

Tracking what you actually spend is the only way to get an accurate picture of your finances. Create a spreadsheet or use a budgeting app such as Mint, YNAB or PocketGuard to categorise your spending and identify where you can cut back to meet your savings goal. Keep an eye on your progress each week to stay motivated and reinforce good habits.

Tip 5: Find extra income streams

Realistically, there is only so much you can save. Another way to boost your savings and make extra repayments is to establish an additional income stream. This could be a side hustle to your 9 to 5, taking advantage of unused assets or selling some of the unused things sitting around the house.

Tip 6: Swap this for that 

There are so many ways to trim the fat without feeling like a scrooge. Swap out an expensive hobby for a cheaper or free one, use cash instead of cards to reconnect with the reality of parting with your hard-earned money or skip a day at the spa for treatments you can do at home.

Tip 7: Make lump sum payments

Rather than spending your tax return or annual bonus, opt to make an extra repayment on your mortgage. Instant gratification is tempting, but remind yourself that additional lump sum payments can affect your total home loan repayments and the length of time it will take to own your property outright.

Tip 8: Consider paying your mortgage weekly 

It may not seem like it would make much of a difference, but changing your mortgage repayments from monthly to weekly may have a positive impact over time. Your interest accrues daily, so this simple switch could potentially save on your home loan.

Ready to kickstart your savings plan and boost your mortgage repayments? Contact us for professional advice about saving on your mortgage.

Building your own home can be one of life’s most rewarding milestones. Not only does a new build have the potential to save you money, but it also gives you the opportunity to design the home you’ve always wanted with all the latest fixtures and fittings.

You can also plan your finances with confidence, knowing your new home will need little maintenance or repair for years to come.

Here’s how financing a new build differs from financing the purchase of an established home.

How do construction loans work?

Construction loans differ in structure from regular mortgage loans. Generally, progressive payments are made as the builder requires them for each stage of the project – from slab, roof and lock-up to completion.

You only pay interest on the amount you’ve already paid, keeping your repayment costs down while you’re paying to live somewhere else. Just like a regular home loan, you must pay a deposit, and depending on the amount you borrow, lenders’ mortgage insurance may apply.

If you’ve already purchased the land, you will usually require a regular mortgage for the land and a construction loan for the build. The loans can be arranged separately, but are usually bundled together, particularly with a house and land package deal offered by a developer.

Products will vary between lenders, but most lenders will allow you to refinance an existing land loan when you apply for a construction loan. Once construction is completed, you can often nominate which home loan product the construction loan will revert to (i.e. a standard variable rate loan or a fixed interest rate loan).

What else do I need to consider?

There may be government incentives available to eligible first-home buyers who build their own home. Check your state/territory’s rules here.

Before you commence your build, you should be careful to establish exactly what is covered for the price. There could be other expenses that you need to budget for. We recommend you have some contingency funds set aside in case of unforeseen expenses that may not be covered by your construction loan.

There are some drawbacks when it comes to building a property yourself, compared to buying an existing house. The construction process takes time and is subject to many factors including inclement weather, and trade and material shortages.

It’s important to go into the project with realistic expectations and the understanding that you may have to wait a while before you can move in. If you’re building in a new housing estate, it may also take some time before features like schools and shopping amenities are completed.

Talk to us for more information

There are quite a few different construction loans on the market and each of them can be structured differently. We’re here to help you discover if building a new home is a viable option for you and help you obtain the right loan product/s for your individual needs.

Before you commence the process of building your own home, it’s wise to get advice. A short chat with us could help to take a lot of the hassle and uncertainty out of the process.

Are you looking at becoming a property investor? Purchasing an investment apartment is often a great place to start.

Apartments are traditionally cheaper than houses, and depending on where you look, there are usually more of them to choose from.

Here are a few of the benefits of buying an apartment:

• An apartment is usually far cheaper than a traditional house. This is because the cost of buying a house includes the land value, and therefore has a higher entry price than a small apartment.

• You will share the repair and maintenance costs for common areas with other unit owners, usually through a body corporate scheme. With a house, you shoulder all the costs.

• Council rates are also higher for houses, and they even require land taxes in some states. So, when you are paying smaller fees on a small investment apartment, the returns on your investment can potentially be higher.

Market conditions are also becoming more favourable for unit investors. Thanks to a slump in the number of new apartments under construction, an undersupply is forecast for at least the next few years on Australia’s east coast.

As the post-COVID property market begins to cool in some cities, units are likely to be more resilient compared to houses.

Apartment growth cycles have, historically, been less volatile and the rental return for units is currently rising faster than capital growth.

Now that you know the benefits of buying an investment apartment, here are our top tips on finding the one that is right for you.

Research the right location

Location is one of the most important factors to consider in choosing the right property for investment. Depending on your strategy, you would most likely want to invest in an apartment where demand is high.

Small space apartments are usually in-demand in locations where young professionals are. Look at the city centre, employment hubs, universities and popular nightlife destinations, as well as areas where these places can be accessed via public transportation.

Also consider what other properties are in the immediate area of the apartment, and of course, the level of security.

Analyse the market data

Data gathered is only as good as how it is used. When analysing the market data, your aim is to find a location where you can maximise the profit potential of your investment apartment.

You can count on us for guidance

We are dedicated to helping you make the right lending choices for your investment and assisting you every step of the way.

Depending on your current financial situation and investment strategy, a small apartment could be a good way to start, especially for a first-time investor.

If you’re looking to buy an investment apartment, we can line you up with the finance you need. Get in touch and we’ll get the ball rolling with pre-approval on your finance.