Interest Rate News

Thankfully, there was no pre-Christmas surprise this month from the Reserve Bank of Australia. The board decided to leave the cash rate on hold at 1.5 per cent. The central bank’s board will next meet in February 2018.

Property Market News

On the whole, national dwelling values were largely steady in November. Again, Melbourne seems to be proving more resilient than Sydney, with dwelling values up 0.52%. In contrast, Sydney’s housing market saw prices fall -0.72% in November. Canberra’s dwelling values rose by 0.86%, while Hobart experienced 0.64% growth. Things are looking up for property owners in Perth, where values rose by 0.21% in November. The city recorded the first rolling quarterly capital gain since late 2014 (up 0.3% in the three months to November). In Brisbane and Adelaide, there was less fluctuation (0.07% and 0.01% growth respectively). Darwin, like Sydney, experienced a fall in property values – the month-on-month change was -0.42%.

In the week ending December 3, there were 3,276 auctions held across the combined capital cities. According to CoreLogic, the preliminary clearance rate was 63.5% – up from the previous week’s clearance rate of 61.6%. Auction volumes remain in line with last year’s figures, but this time last year the clearance rate was much higher, at 72.3%.

Melbourne and Sydney’s clearance rates picked up compared to previous weeks. In Victoria, there were 1,800 scheduled auctions and a clearance rate of 67%. New South Wales held 1344 scheduled actions and cleared 62% of the stock. Meanwhile, the ACT had the highest clearance rate – 76% on 105 scheduled auctions. Tasmania only held 11 auctions and cleared 67% of stock, while South Australia had 148 scheduled auctions and 65% of properties sold. In Western Australia, 61 properties went to auction and 46% went under the hammer. Queensland held 395 auctions and the Northern Territory had 17. Both had clearance rates of 36%.

As the sun sets on 2017, we’d like to take the opportunity to wish you a safe and happy festive season. Remember, now is a great time to purchase a new property for the New Year, or to re-evaluate your mortgage. If you’d like advice about finding a mortgage that suits your financial circumstances and plans, we’d love to help! We’ll do the hard yards for you, so that you can concentrate on the fun stuff this summer, like playing beach cricket and being with the family. Here’s to an exciting 2018 – hopefully one that includes an exciting new property purchase! 

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!

As your mortgage and finance broker, we love to pass on juicy tips that ultimately help you to use your property investment dollars wisely. So, how do you spot that diamond in the rough that will become your renovation goldmine? Well, it takes a good deal of detective work, a resourceful imagination and some logical reasoning when it comes to renovation spending. Right, time to channel Sherlock, folks!

Step 1: Narrow down your leads

Finding the right location is paramount for any property purchase. The aim is to target run-down properties in suburbs with solid growth potential. Ultimately, the property should be close to amenities such as schools, shops and public transport, but not so close to the train line that the front door rattles all night long!

If you’re buying for investment purposes, always remember your end-goal, which is to sell post-renovation. Research what’s in high demand in areas you’re interested in, as well as the value of renovated properties in the suburb. Searching for phrases like “renovator’s dream” and “deceased estates” in real estate advertisements will narrow down your options.

Step 2: Follow the clues and do your detective work

When you find a potential fixer-upper, you need to quickly develop a keen eye for detail. Research the neighbourhood thoroughly and investigate any external issues that could affect your investment. Is the area flood-prone? Is there a high crime rate that could impact upon liveability? Is there noise pollution? Lastly, consider any legal or heritage restrictions that could put a dampener on your renovation goals.

Once you have ruled out potential external glitches, it’s time to concentrate on the finer details and test out your powers of observation. Is the structure sound and are the roof, walls, doors and windows in good condition? Are the foundations strong? Are there any issues with the electrics and plumbing of the property? The last thing you want is to be paying through the roof for non-cosmetic upgrades. It’s a good idea to invest in a pre-purchase building inspection and study it with your trusty magnifying glass.

Step 3: Consider different scenarios and mastermind your makeover

Warning: this may require a good deal of imagination! Being able to overlook retro linoleum floors and garish wallpaper can be tricky, but keep in mind the golden rule of renovation: minimal effort, maximum returns. Cosmetic enhancements that will drive up the value of the property are what you want. Flaky paint, scruffy carpets, old cupboards and dated bathroom fixtures can all be upgraded with minimal effort and cost. Many experts recommend seeking out properties with older bathrooms and kitchens that can easily be renovated.

Also, it’s a good idea to consider the layout and convertibility of the property. Can you add value by playing with the dimensions? Can you knock down walls to create a more open-plan living space, or add walls to create new rooms? Can a puny window be transformed into a spectacular natural light portal? How could you revamp the garden?

A good sleuth knows when to trust their instincts, and if your gut is telling you you’ve found your fixer-upper, it’s time to speak to a reputable mortgage and finance broker like us about how to finance your property purchase and renovations.

Step 3: Close the case

Our final tip is to make sure you stay within budget once you’ve found your renovator’s dream. Don’t overspend on improvements, but don’t skimp on quality either. Spend time and money on renovations that will give you the best return on investment and make the property stand out to prospective buyers.

We hope you’ve found these tips for spotting a good fixer-upper handy. We can provide expert advice about obtaining finance for your property investments and renovations. We’ll analyse the thousands of home loan products out there and test them under our microscope to ensure they measure up. Please get in touch with our team today.

Whether you’re ready for a complete home renovation or simply want to bring your house up-to-date with a few cosmetic changes, you’ll want to get on top of the latest trends so you can make some wise choices on where to invest your budget. Here are 7 top renovation and décor ideas that could help you make sure your money is well spent.

1. Get eco-friendly.
   People want more sustainable homes and as eco-friendly renovations genuinely help to make older homes more sustainable, they’re on trend in 2017. Essential considerations are sustainably produced ceiling and wall insulation, the general use of sustainable building materials, built-in waste management systems, rainwater tanks and water recycling systems, solar energy panels, green walls and leafy facades. Roof gardens and passive design elements that provide natural light and reduce heating and cooling costs are also popular. You probably won’t want to go as far as foregoing the dishwasher or air conditioner entirely, but you should invest in energy saving appliances wherever possible.
2. Create more space and make it more interesting.
   More spacious homes (or homes that appear to be more spacious) are ever popular with home buyers today, so renovations that include extending or adding extra rooms to your home are still great ways to add value in 2017. However, rather than just focusing on knocking all the smaller rooms into one big open plan communal space, the new trend is to also provide options for privacy, with spaces that offer interesting nooks and crannies where people can escape with their personal technological devices and do their own thing.

   Roof rooms and attic renovations are going to be popular in 2017, because they provide opportunities to add a point of interest and difference. The open, spacious look is still the fashion, however finding ways to add character and uniqueness are trendy too.

3. More efficient storage spaces.
   Investing in upgrading your laundry to create and maximise storage space was a very popular option for home renovations last year, and this is all set to continue into 2017. Maximising your storage areas means you can keep all of your untidy clutter out of sight, which will make your home appear much more spacious and help you keep the look up-to-date, with clean crisp lines. Adding clever storage that utilises any dead space in your home is an easy way to add value, particularly important if your property is a family home.
4. Terracotta Tiles.
   If you’ve been around long enough to have survived the ‘80’s, you may be very surprised to learn that terracotta is back in fashion for home renovations in 2017. Interior trends are now moving away from the cool tones that have been popular for the last decade and designers are returning to warm colours and natural materials that add character.

   Today’s fashion in terracotta calls for a smooth matte finish with crisp edges and a more finished look. The idea is to add warmth and depth with natural colours and materials, so consider using your terracotta tiles on feature walls or for cladding fireplaces.

5. Darker Wood Tones.
   If you are tired of the blonde wood look of the world’s recent ‘Scandi’ obsession, you’ll be happy to know that darker wood tones are finally back for homes in 2017. Remembering the current trend is for warm, natural materials that add character, you can now go ahead and use darker wood and natural timbers as feature walls and flooring. Consider adding texture by using it in herringbone tiling on floors, or by choosing interesting darker wood furniture pieces as focal items.
6. Go natural in the bathroom.
   Updating the kitchen and bathroom in your home is one of the tried and tested ways of adding value and is one of the main motivations for choosing to renovate for many home owners. Bathroom makeovers in 2017 will also follow the new interior design trend that combines modern, clean lines with natural materials and organic warmth. Functionality is also an important consideration to home buyers today, so try and choose materials that are easy to clean and maintain to generate the most value.

   Remember that sinks and baths with classic, elegant, clean lines are always timeless favourites. Add that natural touch by using wood in warm tones for accents and furniture or accessories. Don’t forget the terracotta in the bathroom too – add some extra organic depth with a fern in a terracotta pot or consider a small terracotta sculpture.

7. Create more curb appeal.
   A garden makeover that creates more curb appeal for your home is still one of the best investments you can make in terms of adding value this year. Garden design is now moving away from that harsh, minimalistic look that has been popular of late and following the new interior design trend of a warmer, more welcoming look that incorporates natural materials.

   Create a more natural style by staying away from geometric design layouts. You can achieve a more authentic, organic feeling in your garden by using recycled materials, free-form decks, stepping stones or meandering pebble paths. Locally sourced is the buzz word of the year, with native plants and shrubs planted in abundance adding charm.

Talk to us about renovation finance and budgeting.

Over capitalising is one of the greatest dangers when making home renovations, so be careful to set a practical budget and resist the temptation to splurge on too many designer or big brand items. They may make you feel good about what you’ve created, but they won’t add more value and you risk losing money if you decide to sell. If you need help working out how much money you can afford to invest in your renovation project, please give us a call and we’ll be happy to help.

Once you’ve set a practical budget, forward planning for how you intend to finance your renovation project is also a wise idea. Depending on how much you plan to spend, there are a variety of finance options that you can choose from, so talk to us before you start your renovation project so we can help you get it organised. Financing your renovations could mean refinancing your home loan to access some of the equity, taking out a line of credit, or perhaps a personal loan. To find out which option is the right one for you, just give us a call for a chat today.

The good news is you can capitalise on their eagerness to sell, and that makes the start of the 2017 a great time to find a genuinely sharp price for your new car!

But, to snap up a great car deal in the New Year, you need to be prepared. Here are our steps to help you get ready for the New Year car sales and ensure a smooth ride towards owning your new car.

Research

As with all big investments, you need to do your research before you even consider getting behind the wheel for a test drive.

Start by thinking about the make and model you would like. Consider what your plans might be for the next year or so. Will you have another child? Do you need a certain car for your line of work? It’s also worthwhile considering how you will use the car. Do you need good fuel consumption? Will you take it off road?

There are many factors that can influence you towards a certain make or model – car insurance costs, resale value, warranty and more. Being informed can make the process of test drives and getting your finances in place a lot easier and quicker, as you don’t waste time of cars you know don’t suit your needs.

There are loads of resources out there that can tell you about your ideal car. Why don’t you check out the manufacturers’ website, online reviews, or reliability surveys?

Make plans for your old wheels

What you decide to do with your old car is important when we consider how you are going to finance your new car. If you are relying on the funds from the sale or trade-in of your old car, you need to decide on this before we can help you arrange the finance of your new purchase.

Whilst trade-ins are convenient and generally very straight forward, you don’t always get as good a rate as you might should you go down the private sale path. Either way, knowing how much you have to play with from your old car will help get your new car finance in place.

Get your finance sorted

In most instances, you are better off arranging your own finance through a broker, rather than going through the car dealer. Often car dealers will offer you “amazing deals” on the day that may end up costing you more in the long run, so it pays to have your buying power sorted before you head to the car yard. Plus, having your finance pre-approved also gives you a solid bargaining position, should you need it!

There are loads of different ways you can finance a new car. You can:

• Get a car loan: This is a common, straight forward option that’s great for most people.
• Take out a lease: A lease differs to a car loan in that the lender retains actual ownership of the car.
• Use the equity in your home: If you own your home, you could consider refinancing your home loan to use some of your equity to pay cash for a car. Or you could use your redraw facility if you have been overpaying.
• Get a chattel mortgage: If you have a company, business partnership or are a sole trader, you can use a chattel mortgage to buy a vehicle provided it is primarily used for business purposes.

We can work with you to determine the option that is most suitable for you, then we’ll do all the legwork to get your finances sorted – so you are ready for the test drive!

Test drive before you buy

Once you have your preferred make and model in mind, and you know how much you can afford to spend on the car, you can go ahead and start testing them out.

It’s always a good idea to take someone with you for a second opinion, and if possible, for you choose the test route (rather than the usual one the car salesperson uses). Take your time, test out the various features of the car, and use the opportunity to ask any questions you may have.

Check the price and inclusions

Whilst it may sound great, look great and drive well – it always pays to shop around. Why not take a look at the same car at a few different dealerships?

It is hard, but try not to get sucked into those ‘one day only specials’ at the car yard, as usually you can get a similar special on another day once you are more informed.

Car dealerships are required to quote in full. Make sure you are being quoted for everything – registration, fees, stamp duty, etc. It’s also worth being aware of any ‘extras’. This can include leather seats, tinted windows, extended warranties, etc. If these are not part of the standard model – they will cost you more!

And then you are done, nearly!

Congratulations, you are a happy owner of a new car. Once you have found the right car, don’t feel pressured to sign anything until you are 100% happy. Check all the paper work, and make sure all the details are correct, to your expectations, and complete. We can help you with this if needed, just give us a call. Finally, before you drive your car out of the yard make sure you have car insurance – imagine having a bingle on the way home from the lot!

If you’re planning on buying a car, talk with us about which option will be most beneficial to your financial circumstances. Just give us a call, we’ll be happy to talk you through all of the car financing options available for you.