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When selling your home, your main objective is to get the best possible price. So when should you put it on the market? Does the time of year make a difference? The answer is that it depends on the property itself. The time of year can make a difference in some cases, however the location and how the property market is performing are important considerations too. In this article, we’ll take a look at some of the most important seasonal factors that you should consider when deciding to sell your home.
Spring

Spring is traditionally the most popular time of year to sell a property. It’s the season for new beginnings, when buyers spring into action (pardon the pun). Homes and gardens often look their best in spring too, which may drive up the sale price in some cases.

However, spring may not necessarily be the best time of year to sell for everyone, particularly if your property is an established home or located in a city or metropolitan area. Whilst spring may bring increased buyer demand, it may also mean many more property listings in the area your home is located. If there are many properties similar to yours on the market, that could mean lower prices.

Summer

If your home is located in a popular summer holiday destination, summer could be the best time of year to sell. Holiday-makers could potentially be your best market audience!

Properties that are particularly cool may also be more attractive from a selling point of view in summer. Depending on where your property is located, there may also be fewer properties on the market to compete with so it could help you to achieve your price. However, be careful about selling in December or January, when people are generally winding down and preparing to relax over the festive break and summer holidays. If your property is located in a city location, or its market audience is families with school-age children, there will be fewer buyers on the inspection circuit.

Autumn

Autumn is another popular time of year to sell, with auction activity usually red hot just before Easter. Many prospective home buyers hit the open house inspection circuit at this time of year, hoping to find a new home and get it settled before the cold weather arrives. Again, consider your location and check out what other properties are on the market to see how much competition you’re likely to encounter.

Winter

Your home’s key drawcards could influence when to sell. For example if it has an amazing fireplace or a fantastic underfloor heating system, it may be more appealing to buyers in winter. Likewise, if your property is in the snow-fields or an area that is popular for winter sports, winter could also be the best time to sell. West-facing properties tend to receive more sunlight around this time, and this could make them more appealing in winter than at other times of the year.

Another advantage of selling in winter is there may be fewer listings to compete against, which could drive up competition amongst buyers and lift prices, depending on the area where your property is located. Properties in popular locations often sell quickly all year round.

Don’t forget to consider market conditions

In addition to seasonal factors, it’s important to consider local property market dynamics, specifically supply and demand. If there is an oversupply of properties on the market, it may be best to wait it out until conditions change. The best option is to choose a time when stock levels of properties that are similar to yours are low.

If it’s a ‘buyer’s market’ as exists in Perth – a time when there are more properties available for sale than there is buyer demand – there may be no ‘best’ time of year to sell. It may even pay to rent the property out for a while until the market warms up.

Alternatively, if there’s not enough housing stock to meet demand and it’s a ‘seller’s market’ – as has been the case in Melbourne and Sydney – you’ll likely be able to negotiate harder and push up the price. Other influences such as new developments, changes to the first home buyer grant or stamp duty, and interest rate fluctuations can also affect supply and demand, so it’s worth talking to us about these factors.

Do your research and ask for advice

When it comes to selling your home, it’s best to take all of these factors into account, along with your personal circumstances. Your local real estate agent is a great source of information about when to sell, or you could ask us for a free market appraisal report. It’s always wise to do careful research when buying or selling a home, so please don’t hesitate to ask us for help. If you are looking to sell your home and purchase a new one, please speak to us about your finance options as we’re here to help you find the right loan for your financial circumstances and goals. We usually recommend that you try to sell before you buy if possible, so you know how much money you can budget for your next home purchase. However, if you do require bridging finance to tide you over, we can also help you with a competitive option. Please get in touch today – we’re always happy to help!What is the best time of the year to sell your home?

When it comes to smart money management, the key to success is to regularly assess your financial position – and that includes taking a good hard look at your mortgage. Here’s why refinancing every three years may help you save, and why you should check in with us today to ensure your home loan is still the right choice for you.
Refinancing every 3 years may help you to:

Secure a more competitive interest rate

Checking your home loan regularly gives you peace of mind that you’re getting the most competitive interest rate and that your financial needs are being met. With RBA rate movements, lender rate changes and new loan products coming onto the market all the time, it’s quite likely there’s a better option available if you’ve had your home loan for a while.

Access better features and save

A home loan health check is about reviewing your loan against your current financial situation and goals to ensure it still meets your needs and suits your objectives. As your circumstances change – perhaps you have a better job or have started a family since you took out your home loan – the loan features you need may change too. A different type of loan could potentially help you to save money and manage your finances better.

Access equity to build wealth

Accessing your equity could be a fantastic opportunity to build wealth for your future and refinancing to a new loan could allow you to do just that. If you’ve had your mortgage for a while, you’ve probably paid it down somewhat and your property could also have increased in value, so you may have some equity you could use to buy an investment property, or use to purchase shares or other investments.

You could also use the equity for other things you want. Perhaps you need a new car, a holiday, or would like to use the money to pay for your children’s education? Maybe you’d like to put the money towards some home renovations that could ultimately drive up the value of your property. Whatever your goals, we can explain whether refinancing and accessing your equity will help you to achieve them.

Consolidate debt

If you have several debts with high-interest credit facilities like credit cards or personal loans, you could potentially make things more manageable by refinancing and rolling your debts into your home loan. In this scenario, you’d access some of your equity and use it to pay off your other debts. The benefit is you only pay the home loan interest rate, rather than the higher credit card or personal loan rates – although your home loan repayments will likely rise somewhat, you could possibly make some savings if you make an effort to make extra repayments to pay back the amount you withdraw quickly. Talk to us and we’ll help you determine if refinancing to consolidate debt makes financial sense for you.

As your mortgage broker, we are experts at finding the right home loan to help you achieve your financial goals. We’ll check out your current home loan and if it no longer has that youthful vigor you need, see if we can find a better alternative! But first, we’ll nut out the figures and make sure refinancing is the right move forward for you financially. So if you’ve had your current home loan for three years or more, give us a call today for a home loan health check. We’d love to hear from you.How refinancing every three years could help you save

Saving a 20% deposit for your first home is no easy task – particularly if you want to buy your home in Melbourne or Sydney where home values seem to be rising faster than most people can save. But the good news is that there could be ways to get around the problem. Here’s a few little-known strategies and suggestions from your friendly mortgage broker that could potentially help you secure your first home sooner. We hope you find them handy!
Buy what you can afford right nowAs a first-time buyer, it’s important to know what you can afford to purchase right now. Why wait when you could opt for a cheaper entry point into the market and work your way up the property ladder? As your mortgage broker, we’re here to help you work out your current borrowing capacity, so it’s worth getting in touch.

Borrow up to 95% with Lenders’ Mortgage Insurance

Did you know you may not need a 20% deposit to buy a property? Under some circumstances, you may be able to qualify for a loan for 95% of the purchase price. You would have to pay Lenders’ Mortgage Insurance and strict eligibility criteria will apply, but if it allows you to achieve the dream of homeownership sooner, it may be worth it. Talk to us – we’ll explain whether this option could work for you.

Borrow up to 100% with a Guarantor Loan

A guarantor is someone who will provide a guarantee for your home loan, usually a family member (better known as the ‘bank of mum and dad’). This guarantee is usually secured against the equity in their own property. Once you have paid off part of your home loan, or your property has increased in value, you can apply to have the guarantee removed.

Guarantor Loans are a great idea for first home buyers who do not have a full 20% deposit as they save you from having to pay Lenders’ Mortgage Insurance. Some lenders even allow you to consolidate some of your debts – such as credit cards – when you buy your home. Talk to us if you’d like to find out more.

Delay paying your deposit 

If you can’t come up with the cash deposit for your home right now, you may be able to use a deposit guarantee. This is a type of insurance that guarantees the funds will be paid upon settlement. Your money may be tied up in a fixed-term deposit or other assets that you’re waiting to sell. Maybe you’ll be eligible to receive the First Home Owners’ Grant after settlement, but you’d like to use the money from the grant as part of your deposit? A deposit guarantee could help! Talk to us to find out if this strategy could work for you.

Use your super to save your deposit

If you’re trying to save a deposit for your first home, you may be able to use your super to help you save faster. Earlier this year, the Government announced plans to introduce a new scheme that, from July 1, 2018, will allow first home buyers to withdraw any voluntary contributions you make to your super after July 1, 2017. You can potentially withdraw up to $30,000 of voluntary contributions, plus any associated deemed earnings, and put the money towards your deposit. The amount withdrawn will be taxed at marginal rates, less a 30 per cent offset – which means the government will effectively be helping you save your deposit! If you’re a couple, you can both withdraw that $30,000 amount, so it could provide you with a significant deposit for your first home.

But before you start whacking your extra money into your super, be sure to ask your financial planner, accountant, or super provider whether or not you could benefit from this new scheme. As yet, the full terms and conditions of the scheme have not been published, but you can find out more here.

Have someone with experience on your team!

Our final suggestion is to have someone in your corner who knows the game and how to play it. As your mortgage broker, we’ll do everything we can to help you secure finance for your first home. We know all the lender requirements for every loan and can help keep the application process simple, so please get in touch and have a chat with us about your property purchasing plans and financial goals. We’ll also be here to support you after you make your first home purchase – our long term goal is to help you build wealth for your future through property – so rest assured you’ll always be in safe hands with us as your credit and finance partner!6 little-known strategies for first home buyers

There’s a certain buzz in the air at this time of year, as the weather warms up and the property market gets into full swing. Buyers continue to come out of hibernation and snap up properties during the spring selling season. If you’re one of the lucky ones about to make an exciting property purchase, we’d love to help you find a home or investment loan that suits your financial circumstances and goals. Please get in touch!
Interest Rate News

This month, the Reserve Bank of Australia kept the official cash rate unchanged at 1.5%. The RBA’s decision to hold the cash rate was widely anticipated by economists. In September, some of the major banks lowered interest rates on fixed rate loans, so it could be a good time to speak to us to see if this option works for you. Overall, interest rates remain low and there are some very competitive products out there, so call us if you’d like us to check your home loan features and rate!

Property Market News

Dwelling values increased in all capital cities except Sydney and Darwin last month. Hobart led the way, with a month-on-month change in dwelling values of 1.71%. In Melbourne, values rose 0.86%, while in Canberra they were up 0.56%. Brisbane saw increases of 0.28%, and Perth experienced 0.08% growth. Adelaide was slower, with an increase of 0.03%. In Sydney, home values decreased by 0.13% and in Darwin they fell 0.68%.

While auction activity was strong earlier in September, it dropped off during the final week of September (week ending October 1). In Victoria, there were only 137 scheduled auctions, with 89% of properties selling, while in New South Wales, 690 auctions were held and only 67% of properties sold. That’s a big drop in volume compared to the previous week (ending September 24), when both states had a combined 2,672 properties go to auction and clearance rates of 74% for Victoria and 70% for New South Wales. Perhaps everyone was just too busy watching the footy Grand Finals!

In South Australia, 78% of the 45 properties scheduled for auction went under the hammer in the week ending October 1. The ACT held 45 scheduled auctions and achieved a clearance rate of 76%. Western Australia had 17 scheduled auctions (67% clearance rate) and Queensland had 306 scheduled auctions, with a 39% clearance rate. The Northern Territory had 6 scheduled auctions (25% clearance rate), while Tasmania only had one property go to auction, and it sold!

Spring is traditionally the most popular time of year for vendors to sell, and with more competition out there, you may score an attractive deal on the property of your dreams! So please give us a call to talk about your spring property plans, we’re here to help you find you a mortgage that is tailored to suit your financial circumstances and goals, and we’d love to help!Welcome to our October Newsletter

The clever investor knows that assessing your investments regularly is key to identifying opportunities to build wealth. Knowing when to refinance an investment property could be vital to a successful strategy. So is now the time for you to refinance?

Talk to us and we’ll help you to decide! Despite recent tightening around investor lending, there are still some very competitive interest rates available from a variety of lenders. In this article, we cover some of the common questions we get from our property investor customers – and if you do decide you’re ready to refinance, you can rely on us to make it easy!

Why should I refinance my investment property?

There are generally two main reasons why you may want to refinance your investment property. These are to access your equity, or to change to a different loan.

If you’d like to expand your investment portfolio, refinancing to access your equity could be a good move. You could potentially use your equity as a deposit to buy another property, or to take advantage of some other kind of investment opportunity – talk to your financial planner to see what strategy is right for you.

Accessing your equity to renovate could also be a good move. It could help you add value to your investment property, fast-track its capital growth and perhaps improve the rental value to increase cash-flow.

What kinds of fees are involved?

The good news is that when you refinance an investment property, the costs involved in exiting your existing loan and setting up another are usually tax-deductable. That includes the borrowing expenses and any exit fees or penalties. In the first five years of owning your investment property, you can usually claim borrowing expenses back incrementally, and if you refinance within that timeframe, you can claim the remaining tax deductions immediately. Talk to your tax accountant about the benefits appropriate to your situation. If you don’t have one, we’ll be happy to help you with a referral.

Should I use one lender or multiple lenders?

Professional investors often prefer to use multiple lenders to avoid cross-collateralisation. Cross-collateralisation is where you secure a loan against two or more properties instead of one – which can be inconvenient when the time comes to sell, and risky if property prices should fall. If you use one lender, your properties may be cross-collateralised by default. Having said that, some investors may prefer to use one lender. Overall, it depends on your individual financial situation, goals and the size of your investment portfolio, whether you may choose to go with one lender or several. Talk to us and we’ll help you decide which loan structure is right for you.

Should I refinance all my investments at the same time?

If you’re reviewing one mortgage, you might as well ask us to assess all of your investment loans to make sure they are up to scratch. You may decide you are happy with the deal you are receiving for some of the loans, and only proceed with refinancing others. Or you may decide it’s time to change the way all your loans are structured and if so, we’re here to help.

Talking to your financial planner or tax accountant is also a good idea, to make sure refinancing is the right strategy for you financially. If you’d like to chat or explore the kinds of investment loan options out there, please get in touch today. We’d love to help you find the right finance to fulfill your needs!Investment property refinance made easy!


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