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When you decide to sell your home or investment property, it’s natural to want it to fetch the highest sale price possible, but it’s also important to be realistic when setting your price or you risk scaring the buyers away.

Here are some pointers to help improve your chances of selling above market value, whilst not overpricing your property. And remember, when you do decide to move on and buy your next property, we can help you find the right home loan to meet your current and future financial needs.

1) Find a reputable real estate agent

Selecting the right real estate agent is an important part of achieving a desirable sale price, as they provide the necessary advice throughout the sales process to help you reach your goals. You’ll also need someone you can count on to attract the right buyers and secure a sale price that’s on the higher end of the spectrum.

The easiest way to narrow down your search for the right real estate agent is to pose as a buyer yourself. Put the agent’s knowledge and people skills to the test, and research how they are performing in the local area. Their knowledge of the local property market is key. To get the maximum price, they need to have a very sharp understanding of where the local home values are headed and have the skills to persuade prospective buyers that your property is still a bargain, even though you are asking maximum price. The right candidate should be a good communicator, efficient and adaptable.

2) Clean, de-clutter and repair

Prior to selling, it’s imperative to go through your property with a fine-tooth comb. Clean meticulously, de-clutter ruthlessly and repair anything that needs fixing. Buyers will be more likely to pay your price if they know it will be years before they have to spend any more money on maintenance. This is particularly true of property investors – who also don’t want the hassle. Ensuring the property is looking its absolute best will make the next step easier.

3) Style to sell

The goal is to make the buyer fall in love and for your property to be so irresistible, they simply have to accept the price tag. The more attractive a home looks, the more likely a buyer will pay top dollar for it. The key is to showcase your property’s strong points and to make it ‘pop’ in the eyes of prospective buyers.

When it comes to décor, tastes vary widely, so it’s a good idea to stick to neutral or popular choices. Knowing your buyer profile will help you style the property appropriately, but if in doubt, hire a professional stylist. Subtle touches can help drive up the final price.

4) Invest in marketing

Your marketing efforts can make all the difference to your sale price. The more people interested in the property, the higher the competition and the more likely the property will sell above market value.

The quality of the photography is essential to getting a higher price. If you use a professional stylist to set up the property, they often have their own professional photographer. If your real estate agent is taking care of the photos, check the quality of the photography they’ve used with past clients. If they take unacceptable photos of your property, then insist on doing another photoshoot with a better photographer, until you reach a better result. Lastly, use enticing copy to hook buyers and advertise through several avenues to increase your property’s exposure. A good real estate agent will help you with all this!

5) Choose your timing wisely

Timing is everything and choosing when to sell, based on the property market in general, the wider economy, and even the season, is important. It’s all about supply and demand, and if you want to sell your home above market value, you need to wait until the supply is low but the demand is high locally for properties similar to yours. Keep an eye out for your competitors and avoid putting your house on the market at the same time as others in your suburb offering the same features. Your home will get a greater price if it seen as a rare commodity.

Along with timing, deciding whether to do a private sale or an auction can impact what price you fetch. Your real estate agent will be able to provide insights about which sales technique would suit your property and location best, and recommend a starting price that will lure the right buyers.

In order to sell your home or investment property above market value, your property must be beautifully presented and effectively marketed. When you are ready to move on from your current home, we can help you find the right home loan product for your next property. As your mortgage and finance broker, we will guide you through the transition period, and locate a home loan that’s right up your street. Happy selling and good luck!How to sell your home above market value

If you have already purchased your first home, congratulations! The next step in building wealth for your future could be to plan for the purchase of a second property as an investment.

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.

    1. Property purchase purpose
      The first thing you need to understand is why you want to buy a second property. Are you planning to rent out your original property and buy something else to move into? Are you buying a ‘renovators dream’ to knock down and develop? Are you buying because you want a beach house and you will spend half your time in each location?

      Really understanding why you want a second property before you set out will help to inform all your other decisions in the property purchasing process. For example, if you are buying as an investment property, decisions around location, capital gain potential and rental yield will influence you in a different way than when you are buying something for yourself to live in.

    2. Your cash flow and budget
      There are no two ways around it – having a second mortgage is going to have a significant impact on your monthly cash flow! Ask yourself: can you easily service both mortgages? Do you have a stable income?

      Better still, keep a budget so you know what you can reasonably handle so you won’t over-extend yourself. The key here, and this is what a lender will look for, is your ability to earn enough to service both your first and second mortgage effectively, on top of the cost of living.

      It is important to fully assess and understand your borrowing capacity. (We can help you with this – just give us a call). As with any other home loan application, your second mortgage will be assessed on your income versus expenses. Lenders will look at your overall position of asset and liabilities, which means if you have any existing debts such another mortgage (which you do have), personal loans or credit cards, your borrowing capacity is going to be less, compared to if you were debt-free.

      When considering your cash flow and budget, it is also well worth including a ‘safety buffer’ contingency plan. This could be three to six months’ worth of repayments and living expenses, or similar, depending on your savings ability. It is important to have a safety buffer if you are hoping to use your owner-occupied property as security to fund the deposit for the second home.

    3. Will you be renting out one of your two properties?
      If the answer is yes, and for most of you we imagine that you are buying a second property for investment purposes, it’s essential to get a rental estimate for your second property before you make your purchase.

      If you are just in the research stage, having a rough estimate of rental income will help with setting your budget and understanding your cash flow (see point 2), but if you have chosen ‘the’ property to buy, most lenders will require a rental estimate letter from the real estate agent currently handling the property at the application stage.

      Lenders will factor in any possible rental income (if applicable) when determining your borrowing capacity, ensuring it is set at a safe limit – reducing your risk and theirs!

      When choosing a property for rental income, it’s important that the property is well located and will be easily tenanted so that it continues to generate income and support itself.

    4. Loan type & loan structure
      Interest rates have been very low for some time, which makes it a great time to consider buying a second property. And right now there are literally thousands of home loan options out there for you to consider. However, there are many variables to take into account when financing your second property purchase – so it’s a good idea to give us a call. Finding the right home loan product for your financing needs depends entirely on your current financial position and your short and long term goals. This is why the right advice is imperative when taking on a higher amount of debt across two different properties. It is best to speak to us about these options and the best way to structure your finances, before you even choose a property to buy, so you don’t get stung later on in the process. A few scenarios we could discuss include:

      Using your existing equity
      If you’ve lived in your first home for some time, there’s a good chance you have grown your equity. Equity is the difference between what your home is worth and how much you owe on it. For example, if your home is worth $550,000 and you owe $200,000 then you have $350,000 in equity.

      Tapping into this equity could give you a larger deposit for your second property purchase, which could be beneficial for your borrowing capacity and your overall budget. If you’re looking to do this, you will need to have your home revalued. In order to determine how much equity you have in your home, a lender will perform a valuation using an independent valuer before determining how much you can borrow and approving your loan.

Refinancing or staying with your current mortgage lender
Buying a second property offers the perfect opportunity to give your existing mortgage a health check. Use the opportunity to consider your home loan needs in relation to your future goals and ask yourself how well your current loan is performing for you. If you’re satisfied with the service your lender is providing and you have determined that the interest rate and fees you’re paying are competitive, there may be no need to refinance to another lender. However, there are some record low rates on offer at the moment and if you have had your mortgage for some time, it would be worth talking to us about what other home loan products are suitable for you and your goals.

Buying your second property is by no means a small task. We are here to help you with your financial goals, so please chat to us about how we can structure your loan so your second property purchase can really set you up for the future.What you need to consider when buying your second property

mortgage broker fremantle

You’re almost there! You’ve spent years budgeting to buy your own home and now you just need that final cash injection to break into the property market.

Pop quiz time, hands on your buzzers, first-timers. Do you: 1) Continue living off two-minute noodles for another five years and hoard your pennies? 2) Cash-in your grandpa’s beloved stamp collection? Or 3) Ask your mortgage and finance broker about this mystery thing they call the First Home Owner Grant (FHOG)? That’s right, Option 3 is the winning answer and the good news we have for you is that the First Home Owner Grant has recently increased in many states of Australia!

What is the first home owner grant (FHOG)?

The FHOG is a national initiative designed to help young go-getters like yourself to swing a leg onto the property ladder. You can use the one-off grant as part of your deposit, or put it towards other purchasing costs. There are some major provisos: it must be used to buy or construct a brand new home that has not been previously occupied or sold, and it must be used as your place of residence. In some instances, substantially renovated properties that have undergone major structural changes may qualify.

Who is eligible?

Naturally, the Australian Government isn’t going to give away money to everyone who asks for it. The eligibility conditions for the FHOG are quite strict.

To be eligible for the FHOG, you or your spouse must:

  • Intend to live in the home as your principal place of residence (PPR) for six to 12 continuous months, depending on the state or territory, within 12 months of settlement or completion of construction.
  • Be aged 18 or over.
  • Be an Australian Citizen or Permanent Resident.

You don’t qualify if you or your spouse have previously:

  • Received a FHOG in Australia already.
  • Owned a home in Australia, either jointly or separately, prior to July 1, 2000.
  • Occupied, for a continuous period of at least six months, a home in which either of you acquired a relevant interest on or after July 1, 2000, in Australia.
  • Depending on the state or territory in which you purchase your home, other conditions may apply. So please talk to us if you’re unsure if you’re eligible for the FHOG.

Could there be more good news?

Yes! The FHOG is currently under review, so it’s worth visiting your state’s office of revenue website from time to time to see what’s on offer. You may even want to consider moving interstate. How much you can get or save as a first home buyer, often depends on where you want to live.

It’s definitely worth checking out, because you may find you’re eligible for other big savings, like on stamp duty fees in some states. For example, from July 1, the Victorian Government is going to be scrapping stamp duty for first homebuyers for properties up to $600,000, with further discounts for new or existing homes between $600,000 and $750,000. Stamp duty is usually one of the biggest expenses if you’re buying a home, so this may make all the difference to your ability to climb onto the property ladder sooner rather than later.

What’s available around the nation?

The winner of the “most generous” award goes to the Northern Territory. Those wonderful peeps who call the Red Centre home are offering $26,000 to eligible first-home buyers, regardless of the value of the property. In Queensland, first home buyers can receive $20,000 until June 30 (then its $15,000) for properties valued up to $750,000. If you can live with the weather, Tasmania may be the place to buy, with no value cap and a $20,000 FHOG until June 30, when it reverts to $10,000.

In South Australia (SA) and Western Australia (WA), the FHOG is $15,000. In SA, the value cap is $575,000, while in WA, it depends on geographic location (for Perth, its $750,000). Victoria and NSW offer a $10,000 FHOG for new homes valued up to $750,000, but from July 1 the FHOG will double to $20,000 for new homes built in regional Victoria. Lastly, the ACT offer $7,000 for properties up to $750,000. (Data current March 2017).

We’re here for you.

Talking to a mortgage broker about purchasing your first home is always a great idea. We’re happy to give you the benefit of our knowledge, even if you’re not quite ready to buy. You can ask us to help you create a budget, establish a plan to clear off your credit card and other debts, and save a deposit. When you’re ready, we are here to help you secure a loan and choose a home that you can realistically afford, given your income and personal financial circumstances. Get an expert on your team by calling us today!

mortgage broker rockingham

Today’s mortgage market is extremely competitive. With so many new deals and loan features constantly becoming available, it makes sense financially to regularly give your home loan a health check. That way, you’ll be confident your mortgage is satisfying your needs and living up to expectations.

If you do suspect your home loan is in bad shape, don’t worry, we’re here to help. We’ll perform a home loan check-up for you and find you a healthy alternative if necessary. Here’s why refinancing every 2 to 4 years may be just what the doctor ordered.

Circumstances change

Over time, your financial situation may change and a mortgage that was a healthy choice several years ago, may be ailing today. It might lack the features and flexibility you need, or you may be paying for features you’re not using. Perhaps you’d like to access the equity in your property to renovate or invest, or could benefit from refinancing to consolidate multiple debts into your home loan to save on interest. You may have changed jobs and have more or less disposable income. Refinancing at least every 2 to 4 years gives you the peace of mind of knowing your finances are on track and your home loan marries with your current financial circumstances and goals. Allow us to remedy this situation by prescribing a tailored home loan that works for you in the long-run!

New opportunities

The finance and mortgage industry is constantly evolving, with new deals, packages and home loan features continually becoming available. By shopping around every 2 to 4 years, you may find a more competitive interest rate that cuts your repayments and potentially saves you thousands – money that would otherwise have been lost in an inefficient loan. As your mortgage and finance broker, we’ll take a holistic approach to your home loan needs, and advise you about features such as offset accounts or redraw facilities that could help keep your finances in tip-top shape.

To grow your wealth

It pays to keep a healthy attitude toward your finances. Reviewing your mortgage regularly keeps you focused about where you’re at financially and where you’d like to be. It may open your eyes to new strategies to proactively build your wealth and expand your investment portfolio. Refinancing can also allow you to access the equity in your home to invest, renovate, go on holiday or use as you see fit.

If you suspect it might be time for your current home loan to meet its maker, please get in touch! We’ll give your home loan a thorough check-up – minus the stethoscope – and find you a healthier alternative if necessary. While we are specialists at what we do, there are no hefty consultation fees involved – your home loan health check is a free service. Call us, your helpful “mortgage medics”!

mortgage broker joondalup

As Sex and the City’s Carrie Bradshaw could tell you, there are many perks to apartment living, which makes them a fantastic investment option.

They offer people the ability to live close to work and exciting entertainment hubs, where many a social drink can be had within walking distance of home. After all, who wants to live out in the burbs when you can be in the heart of the action? Sure, you might not have your own patch of dirt to toil over, but unless you’re over the age of 60, gardening is overrated.

Indeed, apartments offer attractive rental yields and an entry point into the market in locations that might otherwise be unaffordable for investors. Last May, CoreLogic anticipated there would be 231,129 new units set for completion across the combined capital cities by April 2018. And with such a large supply of apartments, price drops seem likely, so you may very well be able afford your own version of Carrie and Big’s “heaven on 5th”. Here are some tips for choosing the right investment apartment, and when you do, we would love to help you find the right loan!

Location, location, location!

Location is king when choosing an investment apartment – nobody wants to live in a box in the boonies! Proximity to amenities such as public transport, healthcare, recreational facilities, childcare and schools will impact on the rental appeal of your investment and the rent you can get away with charging tenants. Apartments and units with great tenant appeal also tend to experience more reliable capital growth, so choosing the right apartment can help you profit both ways.

Do your homework

Knowledge is power! We recommend you thoroughly research an area before buying. Consider supply and demand for apartment living in the area and find out what are other apartments are renting and selling for. That way, you’ll have a sound understanding of what a given property is worth and the potential rental yield.

Consider your future tenants

Think about who your future tenants might be and what they are looking for in a home. Will they be like Carrie, and require a massive built-in wardrobe to house their Imelda Marcos-style shoe collection? Perhaps features like a parking spot in the CBD may be in particularly high demand. If you can anticipate your tenants’ needs, your apartment is more likely to be highly sought after.

Consider the ongoing fees

As Samantha would say, sky-high strata fees are “painful and unnecessary”. Before buying, calculate your net rental yield to estimate your likely return, factoring in the strata fees, interest repayments, insurance, taxes, rates and water charges. Lastly, before you sign on the dotted line, don’t forget to organise a strata inspection report, which will raise any red flags about the accounts and records of the property.

When you do find an investment apartment that ticks all your boxes, we can help you find you a home loan that fits like a glove. As your mortgage broker, we’ll help you get a competitive rate from one of Australia’s leading lenders and structure your investment property loan so that you get the most out of it – now and in the future. Happy apartment hunting!


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