Lenders begin contacting borrowers who have deferred loans

If you’ve deferred your home or business loan then it’s likely your bank will reach out to you in the coming weeks. Here’s what to expect and what options are available to you.

As the initial wave of six-month loan payment deferrals comes to an end, banks have started contacting customers to discuss the next step, which could include further support, assistance or deferral.

Of the more than 900,000 loans which have been deferred during the pandemic, at least 450,000 borrowers will be contacted as they approach the end of their loan deferral in September and October.

That includes 260,000 mortgages and more than 105,000 business loan deferrals to small and medium businesses that will be assessed.

The important thing to know is this: you have options

No one likes to be caught flat-footed. And if you’ve deferred your loan, the last six months have understandably been quite a stressful period.

Rest assured, however, that there are a range of options we can help you consider before the bank phones to see if you can resume your pre-covid loan repayments.

Those options include:

– switching to interest-only repayments for a period of time
– renegotiating your rate with your current lender
– refinancing to another lender
– debt consolidation, or
– a combination of these and other measures.

And if none of the above options are feasible right now you can seek a further four-month deferral with your lender – but at least you’ll know that you’ve fully explored the other potential avenues first.

We’re here for you

If you’d like to explore some of the above options before your lender contacts you then please feel free to get in touch today.

We’re here to help you with your loan any way we can – whether that be deferring, refinancing, or renegotiating.

Just talk to us.

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

You might be closer to your first home deposit than you think

You’ve probably heard the federal government is giving $25,000 grants to eligible Australians looking to build or substantially renovate their homes. Today we’ll look at what that means for first home buyers when combined with state and territory schemes.

If you’ve been umming and ahhing about purchasing your first home for a while now, we have great news: you’d be hard-pressed to find a time when there were more government incentives to help you enter the property market.

For starters, there’s the federal government’s First Home Loan Deposit Scheme, which can help you buy your first home with a deposit of just 5% without having to pay lenders mortgage insurance (LMI) – so that’s one major cost out of the way.

But you’ll still need that 5% deposit, right?

Well, each state and territory (except ACT) has a first homeowner grant program, with most grants between $10,000 and $20,000.

On top of that, the federal government will give eligible Australians $25,000 to build or substantially renovate homes as part of the new HomeBuilder scheme (however, at this stage it’s still unclear whether or not this amount can go towards your initial deposit).

Last but certainly not least, most states and territories have stamp duty discounts or exemptions for first home buyers too, which can save you tens of thousands of dollars – another hurdle cleared!

Below, we’ll break down exactly what’s on offer in each state and territory and just how much these government initiatives could help put you within reach of a deposit on your first home.

NEW SOUTH WALES

First homeowner grant: $10,000 for new homes valued up to $750,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes up to $650,000, partial concession on homes between $650,000 and $800,000.

With HomeBuilder, you could have: up to $45,000 in government support + stamp duty exemption.

VICTORIA

First homeowner grant: $10,000 (urban) and $20,000 (regional) for new homes valued up to $750,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes up to $600,000, partial concession on homes between $600,001 and $750,000.

With HomeBuilder, you could have: between $45,000 and $55,000 in government support + stamp duty exemption.

QUEENSLAND

First homeowner grant: $15,000 on new homes valued at less than $750,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes up to $500,000, partial concession on homes up to $550,000.

With HomeBuilder, you could have: up to $50,000 in government support + up to $15,925 in stamp duty concessions.

WESTERN AUSTRALIA

First homeowner grant: $10,000 on new or substantially renovated homes valued at less than $750,000 south of the 26th parallel (latitude), or less than $1,000,000 north of the 26th parallel. WA also offers $20,000 grants for new homes built on vacant land or off-the-plan single-storey developments.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes valued at up to $430,000, partial concession on homes up to $530,000. An off-the-plan unit rebate is available for more expensive homes.

With HomeBuilder, you could have: up to $65,000 in government support + applicable stamp duty concessions.

SOUTH AUSTRALIA

First homeowner grant: $15,000 on new homes valued up to $575,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: full concession on off-the-plan new or substantially refurbished apartments up to $500,000.

With HomeBuilder, you could have: up to $50,000 in government support + stamp duty concession.

TASMANIA

First homeowner grant: $20,000 on new homes (reduced to $10,000 from 1 July 2020).

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: a 50% discount on stamp duty for established properties valued at $400,000 or less.

With HomeBuilder, you could have: up to $55,000 in government support.

AUSTRALIAN CAPITAL TERRITORY

First homeowner grant: none.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: first home buyers in the ACT pay no duty so long as their household income is below $160,00-$176,650, depending on how many dependents you have.

With HomeBuilder, you could have: up to $35,000 in government support + stamp duty exemption.

NORTHERN TERRITORY

First homeowner grant: $10,000 for new homes.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: you can get up to $18,601 off your stamp duty costs.

With HomeBuilder, you could have: up to $45,000 in government support + up to $18,601 in stamp duty savings.

Get in touch

So, that covers the first home buyer schemes. If you think you might be eligible, the next thing to organise is financing your new home.

And that’s where we come in. Lenders will still want you to show some sort of genuine savings before they’ll approve a loan application, and we can help you get everything in order for that assessment process.

So if you’d like help obtaining finance to pay for the first home of your dreams, get in touch with us today – we’re here to help you any way we can.

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

4 ways we can make your life easier this Easter

This is an Easter like no other in recent memory. For many of us it will be the first time we will spend Easter apart from your extended family and friends. You don’t need us to tell you how much the world has changed – there’s been no shortage of news bulletins updating you on that. So rather than telling you about more changes, today we’re going to explain how we can help. 

While we can’t control what happens at home we might be able to reduce the number of important calls you need to make instead

Here are four ways we can take a load off your shoulders right now.

1. We can help you stay inside (and sane)

As you’re probably aware, many Lenders have changed the way they operate. Some branches have closed temporarily and many staff are working remotely.

Online enquiries are at record levels and wait times on hold are extended. We’re more than happy to for you to jump on the phone to us and and we will help you sort out matters relating to your home loan.

2. Need to refinance or consolidate your loans?

If it’s been some time since you reviewed your loans,  now could be a great time.

Over the past twelve months the RBA has reduced the cash rates five times. This means that we now have the lowest interest rates in history.

Whether you have a home loan, investment loan or business loan, now is a great time to schedule a financial checkup.

And don’t forget to consider consolidating your debts – including your credit card, car loans or personal loans – so you have fewer debts to keep track of each month.

3. Need to pause your loan repayments due to hardship?

If you’re having trouble meeting your monthly repayments reach out to us and we can discuss some of your options.

If COVID-19 has impacted your income to the point where you may need to pause your loan repayments, then we can help with Lenders
support package policy for you.

Loan repayment deferrals are available for both home loans and business loans.

We can also talk you through some of the other options that might be available to you to reduce your home loan repayments each month.

4. Just want to talk ?

This one is a little left-of-field, but no less important in the current climate.

For many people, this is their first time working from home and we know better than most that making that transition can be a tough gig.

So, if isolation is getting you down and you just want to chat to someone friendly for a few minutes, feel free to pick up the phone or let’s meet on zoom.

Let’s take the time to review our changed work/life balance and make some positive plans for the future.

 

We wish you and your families a safe and happy Easter. Stay well, stay positive, stay kind and know we are here to support you.

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to avoid underinsuring your home

With Australia currently enduring its worst bushfire season on record, we all want to do our little bit to help out, so today we thought we’d discuss the important topic of underinsurance.

Indeed, researchers are warning that the nation is facing an underinsurance crisis, according to a recent report by the ABC, with the Insurance Council of Australia saying more than four out of every five homes affected by bushfires are underinsured.

Federal MP Susan Templeman had her home destroyed by a bushfire in 2013 and had one thing on her mind as she was walking past burnt-down houses on her street: “Gee, I hope I’ve paid the insurance”.

Fortunately, her insurance payments were up to date. However, her insurer still didn’t give her the news she was hoping to hear.

While her insurer said they’d pay out her claim, they advised they wouldn’t rebuild her home as she was underinsured.

You see, even though Ms Templeman had insured her home for its market value of $400,000, the cost to rebuild was about $600,000.

“And that was just like a bolt from the blue. It completely threw us,” she said.

Ms Templeman ended up selling an investment property to help make up the shortfall. But her neighbours on either side never rebuilt.

How are homes underinsured?

Chloe Lucas, research fellow at the University of Tasmania, explains that most homeowners don’t find out that they’re underinsured until it happens to them.

“Most people use insurance calculators online and it’s very hard to get those to give you a calculation that really reflects the real value of your property,” Ms Lucas told the ABC.

“They are most often based on the market value of your property, and that’s very different to the cost of rebuilding after a disaster.”

Ms Lucas suggests owners consider adding at least 20% to what they think their house is worth to avoid underinsurance.

How else could it affect me?

Chances are, if you haven’t updated your home and contents insurance in several years, you could be underinsured.

There is also an astounding 23% of Australians who have no home and contents insurance at all, says the Insurance Council of Australia.

How can I avoid underinsurance?

Here’s a quick checklist to see whether you’re sufficiently covered:

1. Check your policy and talk to your insurer to understand how much they will currently pay and under what circumstances.

2. Pay attention to clauses around fires and floods, particularly if you live in a higher-risk area.

3. Make sure all your items are covered – many people find they are underinsured because they forgot to include new pieces of technology, home renovations or jewellery.

4. Consider the worst-case scenario – if your house and contents were to be destroyed, does your policy cover the full cost of rebuilding? Make sure you consider building costs today, rather than the original cost of building your house.

Final word

If your home or suburb has been affected by this bushfire season, please know that our thoughts are with you – we know as much as anyone how important the family home is.

If you’re in an area that’s susceptible to bushfires or other natural disasters but has not been affected this season, we hope you stay safe and that this article has been helpful.  Check your insurance cover now.  Make sure it reflects the cost to demolish and rebuild and most importantly replace the home you have now.    We can refer you to an insurance broker who can assist.    Just call us !

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

6 tips to prepare your property for valuation

Looking to refinance your home loan? A valuation is a vital part of the process. So today we’ll look at some ways you can help get your home in tip-top shape.

When you refinance to try and get a better deal on your home loan, the lender you’re applying with will arrange a valuation to estimate what your property is worth.

However, a survey by an online lender recently found that one in seven homeowners were unsuccessful in refinancing their mortgage because the value of their property had fallen.

With that in mind, it’s important to tick off as many of the below tips as possible to not only make the whole process smoother, but to give yourself the best chance at a favourable valuation.

1. Spring clean!

Roll up those sleeves, get out the spray and wipe, and get ready to apply some elbow grease.

Ensuring you present a well-maintained property can make a big difference when your property is being valued.

Inside, you’ll want to make sure your kitchen and bathrooms are spotless, your floors are mopped/vacuumed, your windows have been cleaned, and the rooms aren’t cluttered.

Outside, mow the yard, weed the gardens, rake the leaves, clean the deck, and don’t leave any toys or sports equipment scattered around the yard.

2. Get your documentation in order

Valuers sometimes request council rates notices and/or land tax valuations, so it doesn’t hurt to have all relevant paperwork compiled in a dossier in case the valuer requests it.

If you have a copy of your building plans, give them to the valuer – to help speed up the process.

3. Be present

Your valuer will need to be able to easily access every room in the house – not to mention your house itself.

By being present, you can speed up the process and be on hand to both showcase your home and answer any questions, which leads us to our next tip…

4. Compile a list of your property’s features

Sure, you’re not ‘selling’ your house to the valuer. But it doesn’t hurt to highlight its features.

Therefore compile a list of everything your house has to offer – especially if it’s not immediately apparent.

Not only will this ensure the valuer doesn’t overlook anything, but you can also give them the list to keep afterwards.

Your list could include things such as a newly-installed reverse-cycle air conditioner, insulation, solar panels, new carpet, top-of-the-range pool filter, or details of any recent renovations and how much they cost.

5. What’s going on in your neighbourhood?

Your home’s features aren’t the only factors that can impact its value.

If there are any community plans slated for nearby – such as a new bike path or bus stop – have the information ready so you can let your valuer know.

Likewise, it doesn’t hurt to have the details of any recent sales figures for nearby properties on hand.

Do try and read the room though. Some valuers don’t like to be bothered too much, so if you start to get the feeling they want some space then definitely give it to them.

6. Secure your pets

Sure, we love our furry friends. And they may even be considered a member of the family in many households. But not everybody feels that way about them.

Therefore it’s best to err on the side of caution and either secure your dog and/or cat, or ask a friend to look after them for a few hours.

In doing so they won’t get in the way of the valuer while they’re doing their job, and the valuer won’t have to worry about accidentally letting them out of the house.

A few final notes

A valuation can take anywhere between 30 minutes and an hour – it depends on the size of your property and how thorough the valuer is.

After the inspection, it typically it takes 24 to 48 hours for the valuation report to be returned to the lender.

So with all that said, if you’re looking to refinance and want to find out a little more about what the process involves, then definitely get in touch.

We’d love to help guide you through it.     Just call us !

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Caps for new first home buyer scheme revealed

The property price caps in each state have been revealed for the federal government’s new first home buyer scheme. Read on to find out the maximum value of a property you can purchase under the scheme.

Imagine buying your first home with a 5% deposit and not having to pay lenders mortgage insurance (LMI).

Sounds good, right?

Well, the federal government has finally revealed more details in a draft mandate for the scheme, including the property price caps in each state.

The property price caps

Below are the property price caps for each city and regional centre with a population over 250,000, followed by the price caps for the rest of the state.

– NSW: $700,000 (Sydney, Newcastle/Lake Macquarie, Illawarra) and $450,000 (rest of state)

– VIC: $600,000 (Melbourne and Geelong) and $375,000 (rest of state)

– QLD: $475,000 (Brisbane, Gold Coast, Sunshine Coast) and $400,000 (rest of state)

– WA: $400,000 (Perth) and $300,000 (rest of state)

– SA: $400,000 (Adelaide) and $250,000 (rest of state)

– TAS: $400,000 (Hobart) and $300,000 (rest of state)

– ACT: $500,000

– NT: $375,000

Great, but what’s this scheme again?

Ok, so currently people with a deposit of less than 20% usually have to pay LMI.

But under the government scheme, eligible first home buyers with only a 5% deposit could be eligible to purchase a property without forking out for LMI.

Now, it’s important to note that this is not a handout – it’s simply a government guarantee.

But this guarantee could be very helpful, as it could save you as much as $10,000 in insurance.

Any more details?

The scheme is due to commence on 1 January 2020.

In order to be eligible first home buyers can’t have earned more than $125,000 in the previous financial year, or $200,000 for couples (and both need to be first home buyers).

But here’s the catch: the offer is limited to just 10,000 first home buyer loans each year. That’s less than 10% of the 110,000 Australians who bought their first home in 2018.

So who gets first dibs?

That’s the million-dollar question! (or, depending on where you live, the $400,000 question).

It looks as though applications will be granted on a “first come, first served” basis.

So if you’re considering purchasing a property but don’t have a 20% deposit saved up yet – get in touch.

We’d love to run you through the scheme in more detail and help you plan ahead for the new year.

Just call us !

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Is it the right time to switch lenders?

One in 10 consumers have switched credit products in the past year, according to new research, with Millennials and women in particular pouncing on offers from small banks, credit unions and building societies.

The financial landscape is shifting.

Over the past 12 months, 10% of consumers have switched credit providers, according to the Australian Consumer Credit Pulse 2019 report from Equifax, as once-loyal customers increasingly check out what lenders outside the Big Four banks have to offer.

Is now a good time to consider a switch?

With the RBA recently delivering back-to-back rate cuts, there’s no shortage of borrowers who are considering following suit and switching things up.

In fact, a further 11% of consumers intend to apply for credit in the next three months, says Equifax, and of these, half are looking to switch providers when they make their application.

James Forbes, General Manager, Marketing Services at Equifax, says that over the past 12 months the Big Four banks have ceased to be the first preference for many consumers who are switching credit products.

“Instead, they’re increasingly choosing small banks, credit unions, building societies and other lenders,” Forbes says.

So what credit products are people switching?

Home loans and credit cards. They’re the big two.

Of the one in 10 people who made the switch over the past year, a quarter moved their home loans and nearly half moved their credit cards.

Home loans are also a popular product among the 11% of consumers intending to apply for credit in the coming months, making up half of the intended applications.

Who’s switching things up?

According to the report, the younger you are, the more likely you are to switch lenders.

In fact, out of all consumers who switched credit products in the past year, 43% were aged 18-34, and 32% were aged 35-50.

Women are also more likely to switch three or more of their credit products, while men are likely to switch just one or two.

What’s driving the behaviour?

Unsurprisingly, lower costs – including interest rates and fees – were the major consideration for switching across all credit product types, Equifax says.

However, consumers also cite better customer service and brand reputation as important considerations.

“In the wake of the Royal Commission, consumers are increasingly thinking about more than just cost when applying for credit,” says Forbes.

Keen to know more?

With the lowest home loan rates in more than 30 years, if you haven’t looked into your refinancing options lately, now is the time to consider doing so.

Whether you’re a first home buyer,  down sizer,  self employed,  expat living overseas,  young professional with limited deposit,  we’ve got a home loan to suit you.

Just call us

 

 

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

What the cash rate cuts mean for other areas of your finance

Whenever the Reserve Bank of Australia (RBA) changes the official cash rate we all hear about how it will impact home loans. But it affects many other areas of finance and the economy, which we’ll look into today.

The RBA has cut the official cash rate to a new record low of 1%, just one month after lowering it to 1.25% – which was the first rate cut in almost three years (since August 2016).

Now, whenever this happens we all hear about what it will mean for mortgage-holders.

But it also has a flow-on effect for many other areas of finance, which we’ll look into below.

If you’re saving for a first home deposit

If you’ve got a large chunk of your money in a savings account and you’re trying to save for a first home deposit, the latest two RBA rate cuts probably aren’t the best news for you.

That’s because you want your savings account to have the highest interest rate possible and a cut in the official cash rate will likely mean a reduction in interest you earn on your savings.

If you are worried interest rates are going to be cut further, and you want to lock in a rate for a particular length in time, you can look into a term deposit account.

Alternatively, if you think now is a good time to jump into the property market, feel free to give us a call and we can run you through your financing options.

Car finance

If the RBA cuts the official cash rate, the interest rates on car loans generally go down too.

The bad news is that if you have already taken out a car loan it usually has a fixed interest rate for the period of your loan term.

The good news is with interest rates at an all-time low, if you’re thinking about buying a new car or refinancing an existing car loan, now might be the time to lock a rate in.

The many other types of loans

Changes to the cash rate affect interest rates on all kinds of loans, including commercial and business loans, asset and equipment finance, investment loans.

If you’re thinking about taking out any type of loan, or weighing up the pros and cons of refinancing, give us a call and we can give you the lowdown on the new landscape.

Credit cards

Yep, the official cash rate generally has an effect on the interest rate on credit cards too.

That’s because lowering the interest rate is meant to encourage people to spend more – including on plastic – which in turn can give the economy a boost.

If you’re someone who has been guilty of spending a little too much on your credit card, however, get in touch – we can help you look into consolidating it with other debts that are ripe for refinancing now.

Get in touch

Basically, it comes down to this: if you have an existing or prospective debt and you want to see how it all stacks up on the back of the two consecutive RBA rate cuts, then get in touch.

We’re following the market closely and can make sure you’re getting a loan that best suits your lifestyle now and for the future.

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Kicking tyres is bad for your feet

Now that market conditions and sentiment have noticeably improved we are seeing a new wave of buyers.   Below are 5 good tips from David Murphy’s newsletter on how to get into your dream  home sooner:

 

Tip 1 – Choose an Area:

Prices across Sydney’s suburbs vary so much that if you are looking at multiple suburbs it’s  likely that your perception of value is skewed. Choose an area and stick to it. The best buyers become an expert on a particular area and when the right home comes up, they know exactly what to offer.

Tip 2 – Get finance ready:

Get your finance pre approved,  choose a good local conveyancer/solicitor, and be ready.   Sadly, many people go out looking first, find the home of their dreams and get rolled by another buyer that is better prepared.  I wouldn’t be surprised if the tight market conditions we see now last for years. This means that if you miss a good property it could be a long time before another one comes up.

Tip 3 – Get real:

Since the early 80’s property in Sydney has always been expensive, even when the market is down.    This means that even during the GFC, Y2K, September 11,  there were no cheap houses in good parts of Sydney. More people want to live here than want to leave, people who own good homes tend to like keeping them. Get with the program and be prepared to pay up.  Trust me, after a few months you don’t look at your mortgage statements.

Tip 4 – Offer the most:

This may seem revelatory but in most cases the person who gets the property is the one who offered the most. If a property has an asking price within  range, and you can afford it, then pay it. If the property is going to auction then set a realistic limit to bid to. Also, a bonus tip is if you are buying at auction set a limit and then bid like a crazy person within that limit. Why? You may just convince your competition that you aren’t going to stop. If they bid $5,000, you bid $50,000 (within your limit of course!).

Tip 5 – Consider hiring a professional:

Some buyers agents are good and some are less so but if you are time poor  then having a professional may help you  to buy.   You see that’s the point, in most cases even buying a property that isn’t perfect is better than not buying one at all.

 

If  you have any questions about entering the property market or want to discuss getting yourself finance ready,   please give us a call,  we’d love to help.

 

Article amended from David Murphy’s newsletter:

http://www.davidmurphy.com.au/useful-info/news.php?id=503

Your home is not perfect: the value of pest and building inspections

They say that home is where the heart is. And it’s true that we spend so much of our time, money and emotions in our homes. So it can be hard to truly look at them and think that something could be wrong.

But when you’re selling your home, or looking to rent it out as an investment, any faults or flaws can cost you money.

That’s why it’s a good idea to have a building and pest inspection done before you list your home.

Once its done, if any problems are uncovered, they can be dealt with there and then; if there aren’t any problems, you’ll be able to show potential buyers or renters the inspection results.

This will potentially help you get more value from your property.

Know thy enemy

There are a number of common pests in Australia that can cause problems for homeowners.

The ones most likely to cause trouble are cockroaches, rodents, and bedbugs. Termites are also a serious issue in some areas of Australia, mainly in coastal areas and especially up north.

Cockroaches and rodents carry disease,  ruin food supplies, and leave droppings behind, making the  home unsanitary. They are particularly dangerous to children and pets, though adults can also become sick from contact with these animals or their faeces.

Each of these pests can be difficult to manage on your own, and often require professional treatment to eliminate the problem.

Demonstrating that your home is clear of them can make it possible to sell your home for a higher price.

Additionally, if you’re renting your place out,  you’ll know if the pests entered the property before or after your new tenants.

The beauty of Building inspections

Many buyers will want their own inspector to survey the building before they place a bid.

However, you can also have a building inspection completed before you even consider listing your home for sale.

Building inspectors look for all sorts of faults in a home, from major structural damage to leaking pipes.

Once any problems are identified, you can then make a decision about whether you want to simply   disclose the issue, or fix the problem before you sell the house.

Which solution is right for you depends on the specific damage and the cost of repair.

The one thing you should absolutely not do, as you prepare your home for sale, is to take the ‘she’ll be right’ approach.

There’s nothing worse than having a potential buyer uncover something you should have known about. This immediately makes the buyer wonder what else you don’t know about – or worse, aren’t telling them about.

Final word

Whether you’re looking to sell, or rent, knowing that your property is in tip-top shape can help you maximise the return on your investment, and make smart decisions about pricing.

If you or someone you know would like to find out more about this topic, feel free to contact us  – we’d love to help out.