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!

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.

Whether it’s a pledge to give up smoking, get to the gym more often, or start (yet another) healthy eating regime, New Year resolutions usually have a self-improvement or healthy living focus. But what about your finances? A healthy financial situation is just as important to your well-being as a healthy diet and exercise regime. Here are a few New Year resolution suggestions for your finances that could make a big difference to your financial health in 2017 and beyond. If one of these appeals to you, please give us a call as we’d love to help you achieve your financial New Year resolutions this year.

“I will make a proper budget and stick to it.”

Did your credit card debt go up or down in 2016? Spending more than you earn is surprisingly easy to do and having to pay exorbitant credit card interest on all of your purchases just makes matters worse. The secret to turning this situation around is to create a proper budget for yourself and stick to it. It’s also a good idea to include repayments on your credit card as a weekly expense in your budget outgoings, so you can work on getting your debts paid off as well.

To create a realistic budget, list all of the things you need to spend money on and how much they cost. The amount you have left over each week is the amount you can afford to spend on the things you want, put into your savings account, or use to pay off your debts sooner. It’s also important to review your budget regularly to see how you are tracking.

If you have multiple credit card debts, or a variety of debts, you may find managing your budget a challenge as a large part of your income may be lost on interest payments. This kind of situation is frequently referred to as a ‘debt trap’. Talk to us about consolidating your debts to reduce your interest payments and make your financial situation more manageable.

 “I will make an effort to achieve my saving goals.”

The ability to save money consistently is a talent that everyone should cultivate. It’s particularly important if you’re saving a deposit for your first home, as a lender will take your savings history into consideration when deciding if you are eligible for a home loan.

If you are the kind of person who finds it hard to stick to a budget, can’t resist impulse purchases, or indulges in ‘retail therapy’, then you may like to consider installing an app on your mobile phone that supports your efforts to save. ASIC’s MoneySmart website offers a variety of excellent free apps designed to help you manage your finances:

• TrackMyGOALS integrates techniques that are proven to work for successful savers.
• TrackMySPEND helps you see where your money is really going so you can adjust your spending habits to save more. Even just committing to reducing the number of take away coffees you buy each week can make a big difference over a full year!

“I will stop wasting my money on rent.”

For many people, choosing to rent a property instead of buying one boils down to a lifestyle choice. It may be more affordable to rent a property in a location where you enjoy living, than it is to buy one. But the consequence of this choice is that when property prices rise, you are potentially missing out on some significant capital gains that could be important to your financial well-being later on in life.

What’s more, the money you spend on rent is wasted – you are potentially paying off someone else’s investment when you could be paying off a property of your own. So the question is: do you have enough money for a deposit?

If you have been saving regularly and have some money in the bank, now is a great time to take stock of what kind of property you may be able to afford this year. Just give us a call and we’ll be happy to sit down with you and help you work it out!

Getting on the property ladder may mean that you have to consider a location where you can afford to buy, rather than a location where you prefer to live. It may mean giving up your short commute home from work, or easy access to your friends and family, favourite bars, shopping venues and cinemas. But with property prices rising steadily, the long-term benefits could have a significant impact on your future financial security and retirement lifestyle, so it could be worth it to act now.

“I will review all of my financial accounts, including my home loan”

When was the last time you stopped to think about how much money you are paying on fees every year for your mortgage, bank accounts, credit cards and superannuation plans? Most people would be horrified to discover exactly how much money they lose every year in fees and charges across their financial accounts – so it definitely pays to review them regularly and cancel any unnecessary accounts you hardly ever use and don’t really need.

For example, the fees and charges you pay on your superannuation accounts can be quite high and they often go unnoticed. Over the years, these fees and charges may add up to make a big difference to the balance of your super on retirement. The fact is, if you have more than one superannuation account, you are paying double the fees you need to pay! Consider consolidating all your super accounts into one as soon as you can.

The same rule applies to your credit cards. How many do you really need? What are you using them for? If you have more than one, it may be a good idea to transfer all of the balances to one card using a free balance transfer offer. This not only has the potential to save you a significant amount of money on fees, it could also save you some money on interest and perhaps, help you to pay off your credit card balances sooner. Don’t be tempted to keep all of the old cards though, remember to cancel them as soon as you make the balance transfer.

If you have a mortgage, now is a good time to look at which features and benefits it provides, and if you are using them. Do you really need them? Is your home loan the most suitable for your current financial goals? If not, talk to us so we can see if you could be saving on fees, getting a more favourable interest rate or accessing the loan features you need!

We can help you achieve your financial New Year resolutions

Our role as your mortgage broker is to help you arrange your credit and finance to maximise the money you have. We’re here to help you save on interest wherever possible. Whether it’s time for a home-loan-health check on your existing mortgage, or you would like to find out how much you can afford to spend on buying a property, you’ll find our expertise and support invaluable in helping you to achieve your goals. We are even willing to help you find better ways to manage your debt and plan to build wealth for your future.

Financial success means setting some financial goals and making a step-by-step plan to reach them. With a credit and finance professional on your team, you are much more likely to get where you want to be. If you would like to buy a property in 2017, then we can help you achieve your goal by assisting with everything from setting your purchasing budget and getting pre-approval on your home loan, to supplying you with insightful property market data so you can locate the right home to buy more quickly.

Make sure your New Year is a happy one by talking to us about getting on top of your finances. It is one New Year resolution you’ll find very easy to keep! Call us to make a time today.

No doubt you want the rent to start flowing in so you can pay off your mortgage, and to have a smooth and stress free time as ‘landlord’. If that’s the case, it’s time to start looking for good tenants!

Did you know that better landlords attract better tenants? It’s pretty simple really. When you consider your rental property is a business, then your tenants are your customers. You’re providing a service, and they are paying for that service. Wouldn’t you want to keep your best customers for as long as possible?

The first thing you need to decide is if you want to be a “do-it-yourself” landlord, or go down the path of hiring a property management company. There are benefits to both options, but if you are a new “do-it-yourself” landlord, here are a few tips on how to be a great landlord, and in turn, keep your renters happy, for longer!

Welcome them in style

As the saying goes, first impressions last. As your new tenants move in, it’s a great idea to make the process easy and seamless for them from the start. Why not write them a welcome letter? Leaving your tenant a brief note, as well as echoing how happy you are to have them, will set the tone the relationship. Remember to include your contact details!

You could also consider stocking the bathrooms or kitchen. This could be as simple as buying some soap or tooth paste for the bathroom, or some dish washing detergent for the kitchen. Such a small investment can really make a difference to those first few days in a new place.

Ensure both parties understand the lease

To build a harmonious lease/lessor relationship, it’s important that you are both on the same page from day one. To ensure this is the case, it’s always a good idea to walk your renters through the lease. By walking your tenant through the lease it provides the opportunity to answer any questions they may have about any of the clauses in it. This helps to build trust, and importantly, makes it easy for both parties to follow the lease guidelines.

Whilst it is important to have a collaborative relationship with your tenant, at the end of the day, it is a business relationship. If a problem is to arise, it’s vital to follow the guidelines outlined in your lease – as that’s what everyone signed! This way, should they have any objections, you can make it clear that you are within your rights, or vise verser.

It’s also advisable to keep electronic copies of everything – receipts, invoices, bills. You never know when you may need to refer to them down the track.

Be professional and available

It might sound like common sense, but dressing neatly, presenting yourself well and responding promptly can go a long way to keeping your tenants happy!

Ultimately, if your tenants need to talk to you, then you need to be reachable. Tenants should always be provided with multiple means to contact you. Plus, if there was a leaky pipe, you would want to know about it before real damage was done.

Whenever a tenant calls or emails you, be sure to respond as soon as possible. Remember any interaction with your tenant is like a business interaction, so it’s important to think of what you would expect from a business – efficiency, accessibility, approachability. If you know you are going to be away, tell the tenant that you may not be able to respond as quickly.

Be a human

We need to remember that tenants are people too. Good landlords exhibit all the traits that form a good working relationship – open and honest, transparent, good communication. Showing empathy, exercising compassion and making sure you listen to your tenant’s concerns can really go a long way.

If you want to be a good landlord that attracts tenants who stick around, it’s also vital that you are respectful of their privacy.

A good landlord is consistent. A lot of frustration and miscommunication can occur when rules and decisions are changed on a whim, or without reasoning. It pays to be reliable, helping to build trust and understanding.

By following these easy tips, you are on your way to being the best landlord your tenants have ever had! If this all sounds like too much hard work, get in touch with us and we can refer you to a property management company.

With interest rates so low, if you are thinking about purchasing an investment property now is a good time to talk to us about it. It’s also a great time to look at any existing investment loans you have, to determine whether they are still the most suitable for your investment needs. Why not give us a call?

If you live and work in one of Australia’s major capital cities, you are probably finding this task increasingly difficult in your local market as both prices and competition continue to increase.

The answer may be to look further afield. Australia is made up of many different property markets which work together to provide property investors with a full range of investment choices. And diversifying your assets across interstate markets could help you to minimise your risks and maximise your capital gain and income potential. Here are eight tips for making successful interstate property investments to help you build wealth for your future.

1. Do your research.

Whether you’re investing interstate or locally, thorough research is vitally important. You need to become fully familiar with the market you buy into to be confident about your purchasing decisions and avoid expensive mistakes. Your research should cover four basic steps:

Step 1: If you are considering investing interstate, start by researching all the markets across Australia to find which of them provide areas with properties that generally meet your budget and buying strategy, then compare these with each other until you have just a few that you find attractive.

Step 2: Once you have located an interstate market that may be suitable for your investment, research it carefully to identify a general location within that market that meets both your affordability level, rental yield and capital growth objectives.

Step 3: Research the streets and properties within the area you have identified to pinpoint an opportunity to make your property purchase. If you need help formulating a buying strategy, call us for a chat.

Step 4: Research the individual property you select very carefully before you put down a deposit or go to auction. Get building and pest inspection reports together with a comprehensive condition report so you can make an accurate projection of your costs of ownership, including maintenance planning and potential depreciation tax deductions.

2. Buy with your head and not your heart.

Don’t dismiss an interstate location simply because you wouldn’t want to live there yourself. Some investors also make the mistake of choosing a property investment location because it is their favourite holiday destination or somewhere they’d potentially like to retire one day. Always remember that choosing an investment property is a business decision and you should base your decision on potential investment returns, not on personal preferences. To choose a profitable location for your property investment, always focus on the numbers and research data.

3. Visit the location.

Travelling interstate to view investment opportunities may be inconvenient, but no matter what you may hear from other investors, buying a property sight unseen could be risky. Take the time and effort to at least visit the location. You may be able to claim the travel costs as a tax deduction (but talk to your accountant first). If you can’t stay there long enough to locate, inspect and buy a property yourself, then consider interviewing a local buyer’s agent while you are on your initial visit. This will allow you to quickly engage a trustworthy representative to help you in case you can’t get back there yourself when you find the right opportunity.

4. Partner with a good property manager.

Whilst you are visiting the interstate location, it is also a good idea to identify a good property manager in the area and engage their services as well. Managing a property from interstate is not easy and may cost more than you anticipate in travel and expenses. Property management costs are usually tax deductible for most property investors, so ask your accountant if the numbers stack up to allow for a property management company to be included in your budget for the interstate property you are interested in purchasing.

5. Line up a local conveyancer.

Whilst it is possible to use your regular conveyancer or solicitor to help you purchase a property interstate, the costs may be higher than using a conveyancer that is located near to the interstate property you wish to purchase as their expenses to complete the process may be greater. Conveyancing rules, regulations and practices also differ from state to state and your usual conveyancer may be unfamiliar with these differences. Ask us if you need assistance locating an interstate conveyancer.

6. Note the different legal requirements.

Each state has different legal requirements for the purchase and transfer of properties. If you are buying interstate you should talk with a qualified conveyancer or solicitor to make yourself aware of differences in:

• Property titles and transfer requirements.
• Local and national planning controls.
• Rules regarding the purchase of property for foreign investors (if you are from overseas and not a permanent resident).
• Terms and conditions required for sales contracts.
• Terms and conditions imposed on auctions.
• Cooling off periods.
• Permitted uses, zoning certificates and heritage overlays.
• Body corporate rules and constraints.
• Rental and tenancy rules and agreements.
• Rules and regulations when buying off the plan.

7. Research the costs.

Stamp duties, land taxes and other government costs like transfer fees vary from state to state. Council rates can also be widely different from one location to another and you may be surprised by how much. When purchasing interstate, it pays to research these costs well ahead of time so that you can factor them into your budget and avoid funding or cash flow difficulties.

8. Talk with your mortgage broker early.

Good credit advice when investing in property is critical to your success as an investor. Getting pre-approval on a loan for a purchase in a specific location is not only a good idea for budgeting purposes, it will make you aware of any postcode or location restrictions imposed by the lender on the area you are considering. Some lenders impose these restrictions on hundreds of locations around the country to minimise their risk of loss. Where you buy can have a significant effect on how much money a lender is prepared to let you borrow, so it pays to talk to us early about your purchasing plans.

We’re here to help you get things organised if you’re planning to invest in property interstate. Just pick up the phone and give us a call to discuss your plans, we’ll be happy to help you get the ball rolling.