blog Archives - Focus Property Wealth - Perth Mortgage Broker

Redraw vs offset: what first-home buyers should know

glennadmin — Mon, 25 Aug 2025 11:48:50 +0000

If you’re planning to buy your first home this spring, you’re not alone. It’s one of the busiest times in the property market, with more listings and more competition. That’s why it’s important to be well prepared.

Beyond interest rates, there are other features that can make a big difference to your loan and how much interest you pay. Two of the most common are redraw facilities and offset accounts. While they both help reduce interest, they work in slightly different ways.

Here’s a breakdown of what they mean and how to choose the option for your needs.

What is a redraw facility?

A redraw facility allows you to make extra repayments on your home loan and then access those extra funds later if you need them.

For example, if your minimum repayment is $2,000 and you pay $2,500, the extra $500 goes towards your loan. This lowers the balance and reduces the interest charged. If needed, you can request to withdraw that extra amount at a later date.

Pros:

Lets you pay down your loan faster by making extra repayments
Helps reduce interest over time while keeping funds available

Things to consider:

Some lenders place limits on how much you can withdraw or how often
Withdrawals may not be available instantly
Fees and conditions may apply

I can help you understand which lenders offer flexible redraw options that suit your financial plans.

What is an offset account?

An offset account is a transaction account linked to your home loan. It works like an everyday bank account – you can have your salary paid in, use a debit card, and pay bills directly from it.

The money in the account is “offset” against your home loan balance. For example, if your home loan is $500,000 and you have $20,000 in your 100 per cent offset account, you are only charged interest on $480,000.

Pros:

Reduces interest charged while keeping your money accessible
Can be used for everyday banking, helping you stay organised
May help you pay off your loan sooner

Things to consider:

Some lenders charge higher fees for offset accounts, or have limits on how many you can open
Not all offset accounts reduce the full loan amount – some offer only partial offset

As your broker, I can help you compare lenders to find an offset account that matches your spending and savings habits.

Choosing the right loan features

If you’re just starting to explore your home loan options, it’s okay not to have all the answers. The most important thing is to choose a loan that suits how you want to manage your money.

Some loans include redraw or offset features as part of the package. Others may charge more or offer fewer benefits. I’ll help you make sense of your choices so you can borrow with confidence and avoid paying more than you need to.

Planning to buy this spring?

Now is the ideal time to get organised. If you’re looking at buying in the coming months and want to understand how loan features like redraw and offset accounts can help, let’s chat. I can also help you get pre-approval sorted so you’re ready when the right property comes along.

Please get in touch today! Regards Glenn Biggins.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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Buying an apartment vs a house as an investment

glennadmin — Sun, 03 Nov 2024 12:03:11 +0000

Do you want to jump into the property market but don’t have the budget to buy a house? A unit or apartment could be a great way to get your leg up on the property ladder.

According to CoreLogic data, unit values are now rising at a faster rate than houses in more than half of all suburbs across Australia.

Aside from being more affordable than a house, there are other benefits of apartment investing to consider. Let’s look at some of the pros and cons of investing in an apartment versus a house.

Pros of investing in an apartment

A more affordable entry point

The median house price in Australia’s capital cities is now $975,592. Compare that to the median unit price of $669,434 and that’s a big difference at the checkout.

With apartments generally being more affordable than houses, it means you’ll need to save up less of a deposit (usually around 20% of the purchase price), and you may find servicing the loan on an apartment easier too.

Fewer maintenance responsibilities

When you own a house, you have to foot the bill for all of the repairs and maintenance. With an apartment or unit, the costs of any repairs or maintenance in common areas is split with other unit owners, usually through a body corporate scheme.

Generally speaking, there’s usually less maintenance required on a unit compared to a house. There may not be a lawn to mow, for example.

Certain expenses can be more affordable

Some expenses can be cheaper when you own a unit. Council rates, for example, are usually higher for houses and may even include land taxes in some states.

If you’re paying smaller fees on an investment apartment, the returns on your investment can potentially be higher.

Potentially higher rental yield

Units often have higher rental yields than houses because you’re able to outlay less money to potentially acquire a similar rental income. This may mean you are in a better position to cover your mortgage repayments and other expenses.

Cons of investing in an apartment

You may need to pay strata fees

In a strata scheme, you’ll need to pay body corporate fees and factor these into your ongoing budget. Strata fees can be pricey and increase over time.

If there’s an onsite manager, pool, tennis courts, barbecue area and gym, expect higher fees than an apartment block with fewer facilities.

There may be restrictions

If you want to renovate your apartment, you may need to run the changes by the strata committee for approval, particularly if it affects the exterior of your apartment or any shared utilities.

There may also be restrictions around having pets, too, which could reduce your tenancy pool.

Oversupply can affect your investment

If you buy an apartment in an area where loads of high-rise apartment blocks are being built, it can affect your property’s capital growth, rental yield and demand from tenants.

Generally speaking, experts recommend seeking low-rise or boutique apartments in areas where planning rules cap the number of apartment buildings allowed.

Want to discuss your finance options?

Whether you’re looking to buy a small studio apartment, a bigger unit or a house, we can help you explore your finance options.

We’ll run you through the investment loans available to you and explain which may suit you, based on your individual financial situation and goals.

Get in touch today.

However, it’s important to remember there’s no one-size-fits-all approach to buying your first property. For some, it could be a home to live in. For others, rentvesting makes more sense as it can offer a great alternative to get a foot up on the property ladder.

Ready to get started?

As your mortgage broker, we’ll organise everything, explaining the process, keeping in touch and keeping you updated, so that everything runs smoothly.

Please get in touch today! Regards Glenn Biggins.

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Rentvesting: is this a good option for first-time buyers?

glennadmin — Thu, 15 Aug 2024 06:38:15 +0000

With today’s cost of living pressures and the median dwelling value in Australia now at $794,000, many young Australians feel like they’ll never be able to enter the property market.

What is rentvesting?

Reinvesting is when you rent where you want to live and buy where you can afford.

By rentvesting, you can earn an income from your rental property, pay off the mortgage and potentially cover the costs of owning the property, all while continuing to live in a suburb you enjoy.

Why do people choose to rentvest?

One of the biggest motivators of buying an investment property is the potential to make a return via capital growth. This is when your property increases in value over time.

If you’re positively geared (that is, the rental return is higher than your home loan repayments and other property expenses), a rental property can also offer you an additional income stream.

Another reason people choose to rentvest is that it’s another way to enter the property market, without having to purchase a home to live in. Maybe you’ve grown fond of your inner-city apartment (that’s unfortunately out of your price range) and don’t want to move out to the “burbs”? With rentvesting, you can own your own slice of real estate where you can afford and still have the flexibility to live where you want to live.

What to know before going ahead with rentvesting

1. Potentially smaller deposit, but fewer government perks

If you choose an investment property that’s more affordable than the home you intend to live in one day, your deposit will be smaller. It might be easier to save a deposit if you go down the rentvesting route.

However, because you’re an investor and not a first-home buyer, you won’t benefit from government schemes such as the First Home Owner Grant and First Home Super Saver Scheme, which would only apply if you were living in the property.

2. There are ongoing costs to factor in

If you’re rentvesting, you’ll need to budget for all of the costs associated with owning the property (e.g. the mortgage repayments, management fees, rates, water bills, maintenance, insurance, and strata levies if it’s under a body corporate scheme).

Keep in mind, the rental income may cover some, if not all, of these costs. You’ll also need to cover your own rent too.

3. Investor loans could come with higher interest rates

As a rentvestor, you will have an investor loan. These typically come with higher interest rates than owner-occupier home loans.

This means your mortgage repayments may be larger than if you were living in your own home.

4. There will be tax implications

At tax time, your accountant will ask for information about your investment property, including the rental income and expenses (most of which can be claimed as tax deductions).

Your accountant can guide you about the tax implications of owning a rental property, such as the potential for capital gains tax (if your property goes up in value) when it comes time to sell.

Like to know more?

If you want to get started in the property market sooner rather than later, rentvesting could be the way to go.

To explore your finance options, get in touch. We’ll help you work out whether rentvesting is right for you.

Ready to get started?

As your mortgage broker, we’ll organise everything, explaining the process, keeping in touch and keeping you updated, so that everything runs smoothly.

Please get in touch today! Regards Glenn Biggins.

The post Rentvesting: is this a good option for first-time buyers? appeared first on Focus Property Wealth - Perth Mortgage Broker.

Refinancing your home loan: how does it work?

glennadmin — Fri, 19 Jan 2024 06:00:13 +0000

When you’re busy with life, refinancing can seem like a hassle. However, with a mortgage broker to guide you through the process, it doesn’t have to be!

Refinancing may allow you to switch to a more competitive home loan, thereby potentially saving you money in interest.

It can also help you achieve other goals, like using different finance options to renovate your property or consolidating your debt and paying it off more efficiently. You may even consider refinancing to access equity to buy an investment property or another big-ticket item like a pool.

Here are the steps involved in the refinancing process:

Step 1: Work out your financial goals

Do you want to find a loan with a lower interest rate? Perhaps you’d like to explore some of the interest-saving loan features that are available nowadays, like offset accounts and redraw facilities?

It’s important to understand what your financial goals are so that we can help you to access the finance you need to achieve them.

Step 2: Compare home loan options

Next, it’s time to do some research.

Trying to understand all the different home loan options available and consulting with different lenders can be time-consuming and overwhelming. Instead, get us to do the hard yards for you.

We can explain which home loans may be suitable and help you narrow down your options.

Step 3: Submit your loan application

Once you’ve decided which home loan is right for you, we’ll take care of your mortgage application.

Just like when you applied for your original loan, you’ll need to supply certain documents. These usually include identification, proof of income, home loan statements, and records of living expenses, liabilities and assets.

The new lender may also require a property valuation. This helps them to determine how much they are willing to lend you.

Step 4: Discharge your existing loan and settle your new one

When your chosen lender approves your new loan, we will let your current lender know you plan to discharge, or pay out, your existing loan.

We’ll keep you informed throughout the settlement process and let you know when your new lender has paid out your old loan.

Step 5: Start making repayments

After settlement, you’ll receive documentation explaining the ins and outs of your new loan. Then, it’s time to start making repayments.

All up, for most cases the process of refinancing usually takes anywhere from four to eight weeks. The timeline depends on the lender, how quickly you submit the required paperwork and the strength of your application. Some lenders may offer a fast-tracked service.

Ready to get started?

As you can see, refinancing may not be as hard you think. If you’re interested in comparing what loan options are available for you, get in touch with us today.

Ready to Dive In?

Exploring finance options is a crucial step. Reach out to us! We’re here to guide you through the maze and help you align with your investment objectives.

Ready to get started?

As your mortgage broker, we’ll organise everything, explaining the process, keeping in touch and keeping you updated, so that everything runs smoothly.

Please get in touch today! Regards Glenn Biggins.

The post Refinancing your home loan: how does it work? appeared first on Focus Property Wealth - Perth Mortgage Broker.

Smart Investing for the Budget-Savvy

glennadmin — Fri, 18 Aug 2023 04:25:47 +0000

Perth property investment market is going very well, much of this success is to do with the WA property markets affordability in comparison to other states.

Is a small budget holding you back from property investment? Think again!

So you might be surprised to learn that you don’t need a hefty bank balance to dive into the property market. Let’s explore how you could make this dream a reality.

1. Unlock Your Home’s Potential Through Equity

What’s Equity? It’s the difference between your property’s market value and what you owe the bank. For instance, if your home is worth $800,000 and you owe $500,000, you have $300,000 in equity.

How Can It Help? If the value of your home has appreciated or you’ve made significant progress on your mortgage payments, you could be sitting on a hidden treasure. By refinancing, you can tap into this equity, providing you with the means to invest without depleting your savings.

2. Think Beyond the City

Why Regional? If city investments are stretching your budget, consider looking into regional areas. Many of these zones have recently surpassed major cities in performance, especially when it comes to vacancies, rental rates, and property values.

Hotspots to Consider in 2023: Refer to the latest “Top 10 Affordable Regional Areas 2023” report for inspiration. This comprehensive study, based on affordability, property trends, investment considerations, project development, and unemployment rates, highlighted the following standout areas:

Queensland: The Whitsunday Region, Mackay Regional Council, The Charters Towers Region.
New South Wales: Federation Council, Dubbo Regional Council, The City of Lithgow.
Victoria: City of Greater Bendigo, City of Greater Shepparton, City of Ballarat.
Tasmania: Central Coast Council.

3. Two Heads Are Better Than One

Joint Ventures: Consider teaming up with someone. It could be a friend, family member, or another investor. Pooling resources can make property investment more accessible.

Remember: This is a big decision. Always get legal advice to ensure everyone’s on the same page.

4. The Off-the-Plan Route

How It Works: You sign a contract, pay a deposit (often just 10%), and settle the balance once the property’s built. This gives you time to get your finances in order.

Pros: Lock in today’s price, even if property values soar during construction.

Cons: There are risks, like potential drops in property value. Always research thoroughly.

Ready to Dive In?

Exploring finance options is a crucial step. Reach out to us! We’re here to guide you through the maze and help you align with your investment objectives.

Ready to get started?

As your mortgage broker, we’ll organise pre-approval on your home loan and get your loan application over the line, so that everything runs smoothly come settlement day.

Get in touch today and let’s chat about your exciting new property purchase.

Please get in touch today! Regards Glenn Biggins.

Smart Investing for the Budget-Savvy

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How your HECS-HELP debt affects your borrowing capacity

glennadmin — Thu, 11 May 2023 07:17:19 +0000

Do you know how much you owe on your HECS-HELP debt?

While student HECS and HELP loans in Australia are interest-free, they are indexed every financial year based on a cost of living index.

The recent outbreak of high inflation means millions of Australians with student loan debts are facing a 7.1% increase from 1 June, up from 3.9 per cent the previous year.

Your HECS-HELP debt is an important piece of information that banks take into consideration when assessing your application for a home loan, so it’s important to understand yours.

If you’re a bit vague about all the details, it’s worth reading on to see how indexation will impact you.

What is HECS-HELP?

The Higher Education Loan Program (HELP) is a federal government scheme that offers loans to students so they can afford their university and higher education courses.

Most university courses fall under the banner of a Commonwealth Supported Place (CPS). With these, the federal government covers some of the student’s university fees, while the student covers the rest – known as the ‘student contribution amount’.

Your HECS-HELP loan can be used to pay the ‘student contribution amount’. It can’t be used for things like accommodation, textbooks or your dormitory’s mini bar supply.

How do you find out how much your HECS-HELP debt is?

You can check the balance of your HELP debt, the indexation amounts and your voluntary and compulsory payments through myGov or by contacting the Australian Taxation Office (ATO) directly.

Do you pay interest on a HECS-HELP debt?

HECS-HELP debts are interest-free, but the amount of the debt is adjusted on 1 June each year in accordance with an annually determined inflation factor.

And because the cost of living and inflation has gone through the roof, the latest annual indexation factor is higher.

The 2022-23 HECS-HELP debt indexation factor for 2022-23 is 7.1%. To put it in perspective, in 2022, it was 3.9%. In 2021, it was 0.6%. Big difference, right?

Another way of looking at it is like this:

a $10,000 loan balance would increase by $710
a $25,000 loan balance would increase by $1,775
a $50,000 loan balance would increase by $3,550.

What does this have to do with getting a home loan?

When you apply for a home loan, lenders will look at your HECS-HELP debt when assessing your loan application.

While this type of debt is different from credit card debts and personal loans, you still need to make repayments on your student loan and this ultimately affects your income and borrowing capacity.

Paying off your HECS-HELP debt

Once you earn over a certain threshold, your employer will deduct a percentage of your income to go towards your HECS-HELP debt. The more you earn, the higher the repayment rate.

You can find more about the HELP repayment rates and thresholds here.

These PAYGW (pay as you go withholding) amounts are only applied after you do your tax return. So, if you were to jump online and look at your HECS-HELP debt today, your PAYGW payments wouldn’t have been applied yet.

What about voluntary payments?

You can make voluntary payments towards your HECS-HELP debt through myGov. Once processed, voluntary payments are credited directly against the loan balance by the ATO.

If you wanted to pay your loan balance off in full before indexation is applied on 1 June, you’d need to do so as soon as possible (taking into consideration bank processing times).

It is recommended to talk to your accountant or financial advisor about whether making voluntary payments is right for you.

Bottom line

Whether or not you are considering buying a property, it’s important to understand your HECS-HELP debt and how this year’s higher indexation could affect you.

If you’d like to find out more about how your HECS-HELP debt might be treated by lenders, get in touch and we’ll explain.

Additional Resource
https://www.realestate.com.au/home-loans/guides/can-you-still-get-a-home-loan-with-hecs-help-debt

We are here to help with any questions you have, so get in touch today.

Please get in touch today! Regards Glenn Biggins.

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How to manage your own investment property

glennadmin — Mon, 24 Apr 2023 05:24:13 +0000

How to manage your own investment property?

It’s time to find some quality tenants and sign them up to a lease. When it comes to this step, you can go one of two ways.

You can pay a property manager to take care of the nitty gritty for you. There are all sorts of perks to doing this, but of course, there’s a cost involved.

Otherwise, you can choose to manage the property yourself. Here’s what you need to do if you decide to take this route.

Familiarise yourself with the law

How and when do repairs need to be completed? Who pays the utility charges? What kind of notice is required before an inspection?

The answers to these kinds of questions and more can be found in your state or territory’s Residential Tenancies Act. The rights of both tenants and landlords are protected by these laws and you’ll need to be across them if you plan to manage your own investment property.

Prepare the paperwork

Next, it’s time to get your documentation in order. You’ll need:

A lease: usually a fixed term for 6 or 12 months.
The bond: an upfront payment by the tenant (usually one month’s rent) paid in advance as security for rent owed or damage, and held by the governing authority in your state or territory.
The condition report: takes note of the condition of the property before the tenant moves in and can serve as evidence if the tenant damages the property. Your tenant may also submit a condition report once they get the keys. Be sure to take photos.

Set the rent and list the property

To get an idea of how much to charge for rent, you could:

Ask us for a suburb report to find out what the going rates are
Check out websites like www.realestate.com.au and www.domain.com.au

Ask a local real estate agent for advice.

When you advertise the property, make sure you pair quality photos with a great listing to attract the kinds of tenants you want.

Remember to include any stipulations about pets and/or smoking.

Find quality tenants

Finding quality tenants all comes down to how thoroughly you screen candidates.

You’ll need to verify their ID and income (such as their most recent payslips and/or a bank statement highlighting their income), call their references and investigate their previous rental history.

Online tenant (renter) databases allow you to check whether candidates have been ‘blacklisted’ by previous landlords. Examples include:

Be aware that there are laws governing things like disclosure and how these databases can be used. Make sure you get up to speed with the rules in your state or territory.

Get the ball rolling

Once you find the right tenant, file all the necessary paperwork, lodge the bond and start collecting the rent. Keep in mind that each state or territory may have different requirements, so do your research.

Look into landlord software apps, which can help make your life easier with things like rent tracking and expense management.

Respond to repair requests

If you take care of your tenants, they will be more likely to take care of your property.

Make sure you respond to any requests for repairs and maintenance in a timely manner. Remember to check the rules and timelines around completing repairs in your state or territory’s Residential Tenancies Act.

Don’t forget inspections

You’ll want to organise regular inspections to ensure your property is being looked after. Rules may differ depending on location, so again, make sure you do your research.

It also pays to be meticulous about your record-keeping and documentation. Keep a record of all interactions with the tenant, as these can help protect you should issues arise.

Ready to become a landlord?

As you can see, there’s a bit involved with managing your own investment property. However, if you want to have complete control over your property and save yourself the commission you’d pay a property manager, it may be the way to go.

We are here to help with any questions you have, so get in touch today.

Please get in touch today! Regards Glenn Biggins.

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Perth property market update

glennadmin — Sun, 12 May 2019 11:27:52 +0000

When will the Perth Property market return to growth?

With so much focus on the NSW and Victorian property in media it is important to understand Australia has many individual property markets and Perth has been doing it tough for many years now.

You may recall way back in 2006, Perth's median property prices were the highest in Australia. On the back of a record breaking mining boom with high medium incomes and strong population growth, our property market had a higher median value than every capital city in Australia.

Fast forward 13 years and the Perth property market is now the cheapest of all capital cities, so affordability is not really our issue.

How is the current market going?..... Really?

So if you visit a home open on the weekend and ask the reale-state agent this question you will probably get the same response they have been providing for the last few years and that is "The market is heating up, better get in soon". Perhaps now that may be starting to ring true with rental vacancy rates extremely low and early indications weekly rents are increasing again. This often is one of the lead indicators to growth in property values as would be renters turn their sights on purchasing.

Election time, will the sky fall in?

In the weeks leading up to the election both major parties loaded up on promises and reasons to vote for them. The Labor however, had a number of property related policies threatening to unhinge the fragile national property market and this uncertainty provided plenty uncertainty and newspaper headlines.

With the surprising election result and a win to the Liberal Party, the expectation is with certainty we will see confidence return to the Perth property market as we swing from the bottom of our long suffering downcyle.

So we are now finding almost all clients who obtained a loan 2 or more years ago are on the older smaller loan discounts and higher interest rates.

About home loan interest rates and investment loans

After the GFC and the following restrictions on bank lending for interest only and investment loans, the banks were given a clear run to increase their margins on loans. So what happened was both new and existing clients looking for a loan that was considered higher risk (interest only or investment loans) received a small "package discount". This higher interest rate soon flowed to owner occupied loans with the banks margins over the cost of their funds reaching an all time high. In recent months with a number of restrictions lifted and competition heating up this is now reversing, with discounts increasing particularly for investment lending and fixed loans.

So we are now finding almost all clients who obtained a loan 2 or more years ago are on the older smaller discounts and higher interest rates. Sometimes over 1% higher than the rates new clients are getting. Occasionally these are with the very same bank, with "new to bank" clients being offered these much lower rates.

So at Focus Property Wealth we have initiated a full review of all our existing clients and also a quick review process for new clients that contact us to quickly determine if a lower rate can be obtained and how much money can be saved. It is fairly common to save $3,000 per year of interest on an average loan size of $450,000.

So what is next for Perth?

It looks like it might be our time to shine again, albeit a slow (hopefully long) recovery. Buying a property is exciting and rewarding but there are a lot of things to remember and you need to check in on your costs regularly. In terms of finance, we’re here to help you including reviewing your current financial needs and keep on track with your future investment goals. We’ll sit down, work through your plans and help set you up with a plan that ticks all of your boxes, so please get in touch today!

Regards Glenn Biggins.

The post Perth property market update appeared first on Focus Property Wealth - Perth Mortgage Broker.

Rent Vs Buy?

glennadmin — Fri, 15 Jun 2018 04:56:31 +0000

Rent Vs buy? For some, renting makes good financial sense. For others, it’s just money down the drain. For you it may be a question of short-term convenience versus long-term financial growth, which can make it a difficult decision to make. In this article, we break down the pros and cons of renting and buying, putting it into simple terms. We also let you in on a little secret – how to get the best of both worlds!

Pros of Renting

You can live wherever you want
Career and lifestyle are important considerations, whether you’re single or a family. Renting a place in a suburb or location that is close to your work, friends and ideal lifestyle amenities (like schools or shopping) can often be much more affordable than buying there.

Flexibility
If your work or lifestyle require you to be ready to up stumps and move at short notice, then renting gives you greater flexibility and mobility. Or if your situation changes and you find you need less expensive digs, you can quickly find a rental that fits your new budget.

Lower costs and less hassle
Renting is usually cheaper than buying and you won’t have to worry about ongoing expenses like rates, body corporate fees, maintenance, repairs and building insurance.

Cons of renting

The ‘dead money’ argument
Have you ever heard the phrase ‘rent money is dead money’? Many argue it’s much better to pay off your own home loan than someone else’s. It’s certainly true that capital gains on a property can potentially grow your wealth, and you can look forward to living ‘mortgage free’ within 25 – 30 years.

Restrictions
Common complaints from renters include living with the landlord’s décor, not being able to put hooks in walls, restrictions on pets, or even the number of people who live with you.

Uncertainty
Rental properties don’t offer long-term certainty. Moving can be expensive and you’re vulnerable whenever the lease ends or the landlord decides to renovate or move back in.

Inspections
Most rental properties require you to submit to inspections by the landlord or agent every six months. These can be stressful and inconvenient.

What the statistics say:

Percentage of Australians renting 30.9%

Percentage of Australians who own their home outright 31%

Percentage of Australians paying off their home 34.5%

* Based on the 2016 census

Pros of buying

Freedom to do what you like with the property
Buying your own property means you have the freedom to do whatever you want with it. You can decorate any way you like, and add value by renovating.
Capital gains and wealth-building opportunities
You’ll own an asset eventually, and while you’re paying it off the property could potentially increase in value. What’s more, you may be able to use the equity in your home to build wealth through property or other investments.
Certainty
You’ll have the security and certainty of knowing where you’ll be living for years to come. You’ll also obtain a degree of financial certainty – because you’ll own a substantial asset.

Cons of buying

Affordability constraints and costs
High housing prices and low wages growth have made buying difficult for some people. However, there are incentives available like the First Home Owner Grant to help you get started. Ask us if you’d like to know more.
Added responsibility
Becoming a home owner means you’ll have new financial responsibilities (such as paying your mortgage repayments and bills in a timely manner).
You may not be able to afford to buy where you want to live
As a home buyer, you may have to compromise on location or property type to find a property that suits your budget at first. However, once you get a foot on the property ladder, the potential capital gains could help to make your next property purchase more ideal.

Have you considered rentvesting?

Just because you want to live close to the action doesn’t mean you have to forfeit your dream of owning property. Rentvesting is a strategy that allows you to live where you want and buy an affordable investment property elsewhere! You could potentially get a foot on the property ladder now, enjoy the benefits of capital growth and having a tenant to help you to pay the mortgage, but still live wherever you like.

Talk to us about what’s right for you

Whether to rent or buy comes down to your personal situation and goals. If you’ re considering buying, then talk to us and we’ll help you decide what’s right for you. Keep in mind that even if you don’t have a 20% deposit saved, there may be other ways to get you over the finish line to buy a home or kick off your rentvesting strategy. We’re happy to explain everything you need to know, so please get in touch today!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Rent Vs Buy? appeared first on Focus Property Wealth - Perth Mortgage Broker.

3 things every new landlord needs to know

glennadmin — Thu, 04 Jan 2018 03:55:29 +0000

Buying your first investment property is exciting, but it also comes with new responsibilities. When you’re on your L-plates as a new landlord, it’s important to be aware of your rights and obligations and those of your tenants. Here are some of the essential things that you should know.

1) Go it alone, or use a property manager?

When you’re a new landlord, managing your own property could have a steep learning curve. Working with a good property manager will not only teach you the ropes, but they’ll do all the hard work for you - like finding tenants, lodging bond forms, collecting rent, doing inspections and making sure things run smoothly. If there are any issues, the tenant will contact them directly, which could save you a lot of hassle. They’ll also keep you informed of your rights and responsibilities, giving you peace of mind that you’re doing things right.

Before choosing a property manager, be sure to check their online reviews or ask them if you can reference check their other clients. Otherwise, ask us! We are well connected and are more than happy to provide a referral to any reputable local suppliers that we may know. Property management costs are usually tax deductible for property investors, so also check it out with your accountant.

2) Familiarise yourself with the legislation

As a new owner of an investment property, it’s important to know your rights and responsibilities and adhere to the relevant legislation in your state or territory, even if you use a property manager. For example, in some states, you must provide tenants with a new tenant checklist before they sign the tenancy agreement, and you can be fined for not complying. You can find helpful information about each state and territory’s specific requirements on the TenancyCheck.com.au website, available here. Be sure to also check with your state or territory’s relevant government department.

If you have a Property Manager, it’s their job to help you understand the legalities, so if you’re not sure, ask them to fill you in!

3) Understand the importance of the bond

The bond is a security deposit that protects you if the tenant damages the property, leaves it unclean, or fails to pay rent or bills that fall under their obligation. In these instances, you or your agent may be able to claim the bond money to cover your expenses at the end of their tenancy. The bond is usually about four weeks’ rent, but in some instances, it may be more.

Once the bond is collected, you must provide the tenant with a receipt and lodge the money with your state or territory’s residential tenancies authority (known by different names in each state/ territory). Be sure to check with your local authority about how soon the money must be lodged. This authority will hold on to the bond until the tenancy is up and pay it back to the tenant when the property is vacated, provided there’s no money owing for damages, unpaid rent or other costs. If there is a dispute about the bond or you want to claim compensation for damage that exceeds the bond, you can apply to the relevant tribunal within your state or territory.

Buying an investment property is exciting and rewarding. If you’re not confident about going it alone, you can rest assured that there are professionals out there to help make sure things run smoothly. In terms of finance, we’re here to help you find a loan that meets your current financial needs and ties in with your future investment goals. We’ll compare the market and set you up with a loan that ticks all of your boxes, so please get in touch today!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post 3 things every new landlord needs to know appeared first on Focus Property Wealth - Perth Mortgage Broker.

blog Archives - Focus Property Wealth - Perth Mortgage Broker

Redraw vs offset: what first-home buyers should know

If you’re planning to buy your first home this spring, you’re not alone. It’s one of the busiest times in the property market, with more listings and more competition. That’s why it’s important to be well prepared.

What is a redraw facility?

What is an offset account?

Choosing the right loan features

Planning to buy this spring?

Buying an apartment vs a house as an investment

Do you want to jump into the property market but don’t have the budget to buy a house? A unit or apartment could be a great way to get your leg up on the property ladder.

Pros of investing in an apartment

A more affordable entry point

Fewer maintenance responsibilities

Certain expenses can be more affordable

Potentially higher rental yield

Cons of investing in an apartment

You may need to pay strata fees

There may be restrictions

Oversupply can affect your investment

Want to discuss your finance options?

Ready to get started?

Rentvesting: is this a good option for first-time buyers?

With today’s cost of living pressures and the median dwelling value in Australia now at $794,000, many young Australians feel like they’ll never be able to enter the property market.

What is rentvesting?

Why do people choose to rentvest?

What to know before going ahead with rentvesting

1. Potentially smaller deposit, but fewer government perks

2. There are ongoing costs to factor in

3. Investor loans could come with higher interest rates

4. There will be tax implications

Like to know more?

Ready to get started?

Refinancing your home loan: how does it work?

When you’re busy with life, refinancing can seem like a hassle. However, with a mortgage broker to guide you through the process, it doesn’t have to be!

Step 1: Work out your financial goals

Step 2: Compare home loan options

Step 3: Submit your loan application

Step 4: Discharge your existing loan and settle your new one

Step 5: Start making repayments

Ready to get started?

Ready to Dive In?

Ready to get started?

Smart Investing for the Budget-Savvy

1. Unlock Your Home’s Potential Through Equity

2. Think Beyond the City

3. Two Heads Are Better Than One

4. The Off-the-Plan Route

Ready to Dive In?

Ready to get started?

Smart Investing for the Budget-Savvy

How your HECS-HELP debt affects your borrowing capacity

Do you know how much you owe on your HECS-HELP debt?

What is HECS-HELP?

How do you find out how much your HECS-HELP debt is?

Do you pay interest on a HECS-HELP debt?

What does this have to do with getting a home loan?

Paying off your HECS-HELP debt

What about voluntary payments?

Bottom line

Additional Resource https://www.realestate.com.au/home-loans/guides/can-you-still-get-a-home-loan-with-hecs-help-debt

How to manage your own investment property

How to manage your own investment property?

Familiarise yourself with the law

Prepare the paperwork

Set the rent and list the property

Find quality tenants

Get the ball rolling

Respond to repair requests

Don’t forget inspections

Ready to become a landlord?

Perth property market update

When will the Perth Property market return to growth?

How is the current market going?..... Really?

Election time, will the sky fall in?

So we are now finding almost all clients who obtained a loan 2 or more years ago are on the older smaller loan discounts and higher interest rates.

About home loan interest rates and investment loans

So what is next for Perth?

Rent Vs Buy?

Pros of Renting

Cons of renting

* Based on the 2016 census

Additional Resource
https://www.realestate.com.au/home-loans/guides/can-you-still-get-a-home-loan-with-hecs-help-debt