First Home Buyer Archives - 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.

Is now the right time to buy your first home?

glennadmin — Thu, 07 Dec 2017 00:40:35 +0000

If you’ve been dreaming about purchasing your own place, but a niggling voice in the back of your mind has been offering up objections, we’re here to tell that voice to pump the breaks, champ! In this article, we tackle some of the common objections first home buyers may have to buying right now, and explain why you should talk with us today.

Objection 1: "I don’t have a big enough deposit"

If you’ve been working hard to save a deposit to buy your first home and feel like it’s never going to be big enough, we have some exciting news for you! Size doesn’t always matter, especially not in this scenario. Being approved for a home loan is not necessarily dependant on how much of a deposit you have, but rather your capacity to repay the mortgage. There are all sorts of options available to aspiring homeowners who don’t have a 20% deposit.

Some lenders still offer home loans for up to 95% of the purchase price. The borrowing criteria can be more stringent than other types of loans. If you have a clear credit history, stable employment, a solid income you may qualify. Most home loan providers will want to see evidence you’ve saved at least 5% of the purchase price, and you may have to pay Lenders’ Mortgage Insurance with this type of loan – but you’ll have your foot on the property ladder! Speak to us to find out whether this kind of loan could work for you.

Another way to get a foot on the property ladder could be to ask your a family member to be your guarantor. This is when they use the equity in their property as security for your loan. The right time to buy your first home is as soon as you can afford to do so!

Objection 2: "I think the market downturn is coming"

Whilst the property market does go up and down in cycles, "timing the market" is not as important as "time IN the market". The sooner you buy a property, the sooner it will be possible for it to start to experience capital growth (which is the term we use to describe how much your property goes up in value whilst you own it).

There is always a possibility that your property will go down in value after you purchase it. However, you need to remember it has only gone down in value ‘on paper’ – you won’t actually lose any money unless you sell it. Market fluctuations are common and it is likely it will have recovered in value by the time you want to sell.

Choosing the right home in the right location can help protect against property market fluctuations and improve your chances of long-term capital growth. When you locate a property you’re interested in buying, we can help you check its capital growth potential with a free property market report – so please ask us.

Objection 3: "I can’t afford a home where I would want to live"

Most people don’t get to buy their dream home the first time around. This is a goal you can work towards once you get on the property ladder. If you can’t afford to buy your dream home, you could look for something in another location. Consider a smaller property that’s more affordable, or opt for a fixer-upper that has potential but just needs a little love. Another option that’s becoming increasingly popular is to rent-vest – rent where you want to live and buy an investment property somewhere else. That way, you can grow your nest egg to enable you to eventually buy the home you want.

There’s no time like the present to chat with us about your plans and finance options. Please get in touch and we’ll explain your borrowing capacity, home loan options and help you get pre-approval on your loan so you can start looking for a property to buy sooner.

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. 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 Is now the right time to buy your first home? appeared first on Focus Property Wealth - Perth Mortgage Broker.

6 strategies for first home buyers

glennadmin — Tue, 24 Oct 2017 01:00:37 +0000

Saving a 20% deposit for your first home is no easy task – particularly if you want to buy your first home in Melbourne or Sydney where home values seem to be rising faster than most people can save. But the good news is that there could be ways to get around the problem. Here’s a few little-known strategies and suggestions from your friendly mortgage broker that could potentially help you secure your first home sooner. We hope you find them handy!

Buy what you can afford right now

As a first hime buyer, it’s important to know what you can afford to purchase right now. Why wait when you could opt for a cheaper entry point into the market and work your way up the property ladder? As your mortgage broker, we’re here to help you work out your current borrowing capacity, so it’s worth getting in touch.

Borrow up to 95% with Lenders’ Mortgage Insurance

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

Borrow up to 100% with a Guarantor Loan

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

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

Delay paying your deposit

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

Use your super to save your deposit

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

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

Have someone with experience on your team!

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

The post 6 strategies for first home buyers appeared first on Focus Property Wealth - Perth Mortgage Broker.

First home buyer? what to look out for when inspecting properties

glennadmin — Tue, 15 Aug 2017 11:33:40 +0000

If you’re a first home buyer and new to inspecting properties, it can be difficult to know what to look out for, especially when you’re excited about your first home purchase!

Well, first-timers, we’ve got you covered. In this article, we’ve put together a 101 guide of things to be mindful of during your home inspections – all the big issues which may be costly to fix down the track. When you do find a property that ticks your boxes, you’ll want to be ready to move fast, so remember to talk to us about getting pre-approval on your home loan before you start inspecting. But first, here’s our checklist to help you avoid buying a lemon!

It’s all about your budget

If you’re a first time buyer and looking for a home, you’ll probably be inspecting properties that need money spent on them for a variety of different reasons. This checklist is designed to help you inspect properties effectively so you can rule out the lemons and save money on multiple building and pest inspections. But remember, it won’t rule out the need for a professional inspection on the place you decide to buy!

Structural issues: These are generally the most expensive and difficult problems to repair. During the inspection, keep your eyes peeled for signs of subsidence, uneven floors, cracks in the walls or brickwork, or doors that don’t close properly.

Plumbing issues: You don’t want to be knock, knock, knocking on heaven’s door when you take a shower, so don’t be shy about turning on the taps to check for hammer issues. Make sure the water pressure is good and the drains are operating well.

Dampness: Stains, water marks and damaged or peeling paint may indicate the property has issues with dampness. Sometimes, vendors try to paint over problems, so channel your inner canine and use your sense of smell during the inspection.

Mould: This may be an indication of a bigger, more expensive problem, such as a leaky roof, plumbing issues, inadequate ventilation, or rising damp. All of these can be expensive to fix, so check bathrooms, ceilings, window frames and walls meticulously.

Termites: When you’re inspecting properties, look for the tell-tale signs – sagging or buckling floors, hollow-sounding beams and “mud leads”. A bad termite problem may produce a sweet, sugary smell. No matter where you live in Australia, always get a pest inspection, because termites are everywhere and they can be costly to evict!

Wiring: If the property is sporting a 1970s chandelier, or antiquated switches and sockets, the electrical wiring may be outdated and it could end up costing you to rewire. Check the electrical box as this will t

ell you when the system was last updated. If it does not have a residual current circuit breaker, then it has probably not been brought up to modern standards.

Appliances: It’s always a good idea to take a good look at the fixed appliances such as the oven, stove, air-conditioner, dishwasher and heating system. If they look like they are on their last legs, you’ll need to factor in the cost of getting them replaced.

Renovations: Homes at the less pricey end of the market often have outdated kitchens and bathrooms. Many first home buyers think they can live with the situation until they save up to do a renovation, however you need to be realistic – these can be expensive to replace so get a quote so you can factor it into your budget! If renovations have already been done, check the quality.

Asbestos: Properties built before 1990 may contain asbestos. During the inspection, find out when the property was built and ask about the construction materials. If the property is of ‘fibro construction’ it probably has asbestos - which is not dangerous if it is in good condition, but get your building inspector to check carefully before you move ahead with a purchase.

Roof: Stand back in the street and cast your eye over the roof. What is it made of – tin or tiles? Is it rusty? Are there any missing or damaged tiles? Does the pointing between the tiles look crumbly? These can all indicate the roof needs work, so if it looks at all suspicious, be sure to get it checked out properly as a new roof can be costly.

We hope you’ll find our inspection guide handy! But remember, even if you’ve developed an eagle eye and a nose for trouble, protect yourself by getting professional building and pest inspections before you buy anything! If you need a referral to a reliable inspector, just let us know. Before you set out on your buying journey, it’s a good idea to Contact us so you can determine your budget and get pre-approval on your home loan. Then once you find the right place and it’s been given the all-clear, we can help you move quickly. As a first home buyer we would love to help with your first home buying journey, so please get in touch!

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 First home buyer? what to look out for when inspecting properties appeared first on Focus Property Wealth - Perth Mortgage Broker.

5 Ways to pay your home loan off years earlier with no additional repayments!

glennadmin — Mon, 14 Aug 2017 04:59:35 +0000

PART 1 - The Scenario.

Have you ever wondered how some people seem to get ahead to pay their home loan down whilst others struggle from pay to pay and yet both generally have similar incomes?

I see this a lot and then I am privileged to be able to drill down deeper into our clients financial lives to see how they operate and find areas we can create efficiency in their finances. This may be the last thing you may want to do but I just love it because I know what this means to our clients to get on top of things..... It gives them the freedom to choose how to live their lives and what to do rather than being held back by a constant lack of money.

The Typical Scenario

I would like to take you through a typical scenario - As an example lets say John and Jenny have the following scenario:

A $400,000 home loan at an interest rate of 4.45% with 27 years left on the current loan term. Repayments with this home loan are currently $1,043 per fortnight.
In addition to this home loan they have a $20,000 car loan with an interest rate of 7.5% and fortnightly repayments of $184 per fortnight. This loan has 5 years left to pay this loan down to $0.
Currently their pay is deposited into a bank account with a balance of $5,000 currently, this account is used for all household bills and earnings a little bit of interest and is with a bank other than where the current home loan is.

This represents a fairly standard client scenario with the household income often equalling the household costs (including discretionary spending and those bills you just do not know what they are for) as most of us mere mortals spend what we earn without some form of control or indicator to let us know to stop spending in place. How to keep your household spending under control is a subject for another time.

"Ultimately the goal is to pay down all loans as soon as possible whilst allowing you to continue to live your life."

The idea is to increase the efficiency of the operation of all finances so the clients minimise the interest, fees and charges they pay the banks above the funds they owe. Ultimately the goal is to pay out all loans as soon as possible whilst allowing them to continue living their busy life and spend after tax money on things that really matter.

About Home Loans:

Although interest rate is not the only consideration in getting a home loan, if a client can save say $3,000 of interest cost per year they can reinvest these saved dollars back into the loan and pay the loan of years sooner.

What is the right bank choice?

There are literary hundreds of loan products to choose from with a range of features, fees and charges. Usually the correct loan comes down to two key items, the one that has the functional requirements of a client and also is the cheapest overall. Paying for extra features that are not being used is a waste of money so the right loan can be different for each client.

As an example three typical options offered to John and Jenny might be:

Bank A - Second Tier bank on their professionals package with an annual fee of $395 per year and package discounted interest rate at 3.85%, excellent package with 10 offset accounts available, credit card included in package and a very good ATM network. This option has not rebate offered to refinance however so costs to move will need to be factored in.

Bank B - a No frills basic home loan with a non-major bank, no annual, ongoing or setup fees. An interest rate of 3.94% and this product being no frills does not have an offset account or any package benefits.

Bank C - Professionals package with an annual fee of $395 per year and a packaged discounted rate at 4.04% with a major top four bank. This is an excellent package with 10 offset accounts available, credit card included in package and a very good ATM network. This option does have a refinance rebate under a special pricing approval of $1,250 to account for costs to move from the current bank. (actual costs are expected to be around $700 for John and Jenny so this rebate would put them in front).

So this is the Scenario, next is the solution.

Need help or have any questions?

Contact Us any time or visit Focus Property Wealth Website or call Glenn directly on 0433 212 444

About the Author - Glenn Biggins is the founder and director of Focus Property Wealth, a finance and property investment advisory firm with a focus on their clients goals and objectives. Glenn is an active property investor himself and has been investing in property through a number of property cycles; he currently owns a portfolio of properties throughout Perth as well as in other states in Australia.

Disclaimer

The advice provided is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice. This needs to have regards to your own objectives, financial situation and needs. Where quoted, past performance is not indicative of future performance.

The post 5 Ways to pay your home loan off years earlier with no additional repayments! appeared first on Focus Property Wealth - Perth Mortgage Broker.

Questions to ask about your home loan

Focus Property Wealth — Sat, 29 Jul 2017 20:07:43 +0000

There’s a lot of benefits to using a mortgage broker and they can certainly help you speed up the process of property buying and your financial goals.

A good mortgage broker can assist you in choosing the right home loan for your current and future needs as well as answering all your questions.

Here’s some of the common questions we get asked here at Focus:

1. How will I know what loan is best suited to my situation?

When choosing a home loan, it's important to work out the features you need from your loan and how much it will cost you in fees. Do you need an offset account that can reduce the amount of interest you pay? Do you need a redraw facility in case you need to withdraw funds? A Mortgage broker can work with you to find the best loan for your situation.

2. How much of a deposit do I really need for a loan?

Generally it’s no longer possible to get a loan for the whole of a property’s purchase price. Most lenders will want you to put down at least 5% of the purchase price of the property. The rest - generally up to 95% - may be financed using a home loan. There are other solutions such as using equity from another home you own or even using your parent’s equity as security.

3. What impact will my credit cards have on my loan borrowing capacity?

We all get sent letters to increase our credit card limits and some even occur automatically. However these can have a big impact on your borrowing power.
For example a limit of $10,000 on a credit card can reduce your borrowing limit by up to $30,000, even with a good income and savings.

4. What fees will I need to pay with a home loan?

There may be a range of fees charged by your lender such as application, valuation and settlement fees. It’s important to ask your mortgage broker about these fees, especially if you are refinancing to see if it’s worth the switch.

5. What information do I need to give to get my loan?

A mortgage pre approval can be useful as an estimate of how much you can afford to spend on purchasing a home. Your mortgage broker will need a full disclosure of all your finances and history to be able to put you forward to a lender such as proof of income, your last 2 years tax returns, proof of asset ownership, your credit file (although your mortgage broker can access this on behalf of you), proof of employment (pay slips etc), bank statements and Id proof such as drivers licence and address.

6. Can I change my loan and interest rate at a later stage?

This depends on the loan product you have chosen. The time to lock in an interest rate on your loan depends completely on your personal circumstances and we work with our clients on this process.

7. What is Lenders Mortgage Insurance?

When lenders agree to a loan for a client, there is a small risk that they won't get the money back if repayments are not met. Although the house is used as security, if property values decline that security may not be enough to cover the outstanding loan when the lender comes to sell it.

This type of insurance protects the lender – not the borrower – in the event that you, the borrower can’t meet the loan repayments.

Please note Lenders Mortgage Insurance is not Mortgage Protection Insurance. Mortgage Protection Insurance insures the borrowers and can cover mortgage repayments in the event of unanticipated circumstances such as unemployment, injury, illness or death.

Communication is key when it comes to getting the best out of your mortgage broker.

Make sure you ask a lot of questions and tell your broker exactly what you are looking to achieve so that he or she can offer the best advice for you.

If you are thinking about buying a property, or refinancing speak to us at Focus Wealth today. Contact us today or call 6162 6577.

The post Questions to ask about your home loan appeared first on Focus Property Wealth - Perth Mortgage Broker.

Building a new home? How to finance it

glennadmin — Thu, 22 Jun 2017 01:56:41 +0000

There’s something thrilling about building your very own, brand spanking new home !

Perhaps it’s the knowledge that everything will be fresh and new, or the freedom that comes with being able to design the property to suit your own tastes and lifestyle needs. Always dreamed of having a lap pool? Why not! Like the idea of a home studio? Let’s make it happen in your new home!

When building your own home, there’s a new chapter to begin, new adventures to be had and new memories to make. So, whether you’re planning on doing the building yourself, or you’re purchasing off-the-plan, talk with us now about securing the right finance!

Building your own home

When you build a new home, the right loan could potentially help you save a lot of money on interest. For example, a construction loan allows you to borrow in stages, while your home is being built. Rather than providing the full loan amount at once, the lender breaks the loan down into “progress draws”, and pays these to the builder in stages throughout the construction process. This arrangement means you only have to pay interest on the loan amount you have actually used.

Your lender will usually require council-approved plans and a fixed-price building contract before they will approve a construction loan. The lender’s valuation expert will use these to help estimate the on-completion value of the property, and the lender will then assess the final loan application on whatever is less – the land price and cost of construction, or the on-completion value.

The advantages of construction loans

With construction loans, you only pay interest on what you’ve actually drawn down, not the maximum loan amount you’ve signed up for. What’s more, loan repayments are usually interest-only during construction.

As each phase of construction is completed, the lender’s valuation expert usually inspects the building progress on behalf of the lender and then authorises the next draw down on your loan to pay to the builder. Then at the end of the construction process, you can choose the type of loan you’d like to use moving forward – this could be a fixed rate loan, a variable rate loan, or another type of loan, depending on your circumstances and objectives. (So do talk to us about your options before you decide.)

Perhaps the biggest benefit of a construction loan is the way your builder is paid. Construction loans help to give you a level of protection, because cash is not paid to the builder until the work is completed and inspected at each stage. This can often help to prevent construction falling behind schedule, or potentially aid in early detection if there are any issues with the build or the quality of work.

Some lenders charge a slightly higher interest rate for construction loans, so it pays to ask us to shop around amongst lenders. Talk to us and we’ll ensure you have the right kind of construction loan for your particular needs and are fully aware of exactly how much it will cost. If necessary, we may advise you to use another loan alternative, like setting up a line of credit facility, for example.

Buying off-the-plan

Buying off-the-plan is a term used to describe buying a home from a developer before it has been built. If you’re buying property off-the-plan, you’ll only have to pay the deposit up front. However, organising your finances may not be quite as straight forward as with purchasing an established home, as there is usually a considerable period of time between paying your deposit and final loan settlement. You will also need to get advice from a solicitor regarding the details in the contract for your off-the-plan home purchase, to make sure you and the developer are on the same page regarding what the price includes before you sign the contract.

As your mortgage broker, we are here to explain the process of buying off-the-plan, help you line up your professional team, and help you find the most suitable loan for your needs and objectives. We can also help you arrange your deposit, whether it’s in the form of a bank guarantee, deposit bond or cash, and oversee the payment process for you. It’s also very important to organise conditional loan approval (finance in principle) with your chosen lender before construction of your off-the-plan property begins, so do give us a call before you sign on the dotted line.

Talk with us about finance before you get started!

There are many important things to consider when buying off-the-plan, or building your own home. For example, once the property is built, most lenders will require a valuation on the finished product before approving your final loan and proceeding to settlement. If a problem arises, such as the value of the completed home is less than you anticipated, construction is delayed, or the build costs more than you expected, having a finance professional on your team could make all the difference to the outcome.

If you’re a first-time buyer, you may also be eligible for the First Home Owner Grant (FHOG) when building your own home or buying off-the-plan. You may qualify for stamp duty concessions or exemptions in some circumstances, even if it’s not your first home. Speak to us and we’ll help you check what concessions you may be eligible to receive.

It pays to get professional advice about your finances when building your own home, and planning ahead is the key to success. Construction loans can be complicated and the timing can be tight with off-the-plan mortgages, which is why it’s a good idea to call us for help. We’re here to give you support throughout the process and help you secure a suitable finance solution for your needs and goals, so if you’re ready to stop dreaming and make building your own home a reality, please contact us 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 Building a new home? How to finance it appeared first on Focus Property Wealth - Perth Mortgage Broker.

3 Top Tips for Buying Your First Home

glennadmin — Mon, 29 May 2017 14:07:46 +0000

You’ve budgeted hard, given up loads of smashed avocado brekkies, saved your deposit and are ready to buy your first home. High five!

There’s nothing quite like finally getting a foothold on the property ladder and moving into your very own pad, but it does require planning and research. With our help, you’ll soon be doing a victory dance and posting that exciting Facebook post of you in front of a shiny ‘SOLD’ sign on your first home. Here are our quick tips for buying your first home.

1) Talk to us about how much you can borrow

Your home ownership journey begins with a chat with your mortgage broker! There’s no point wasting your life inspecting properties that are outside your price range. We’ll help you determine your borrowing capacity, set your buying budget and explain about applying for the First Home Owner Grant and making the most of any other exemptions and savings you may be able to obtain to help you get started.

The amount you can borrow will depend on the size of your deposit, your savings history, income, expenses and credit history. It’s a good idea to save 20 per cent of the purchase price, plus the other costs associated with buying property like stamp duty, legal fees and building and pest inspections.

You may still be able to buy now even if you don’t have a 20% deposit, so talk to us about your plans. If you don’t have a 20% deposit, you may still be able to get a home loan, but you will have to pay Lender’s Mortgage Insurance (LMI) which protects the lender against any shortfall if you default on your loan and it has to be sold to repay your debt. Sometimes it’s worth paying LMI if it means you can get on the property ladder sooner, so talk to us and we’ll help you decide if its best to buy now or wait until you’ve saved more.

2) Get on the property ladder sooner rather than later

In most cases, it’s a good thing to jump aboard the real estate train pronto! The sooner you stop wasting money on rent and start making capital gains on your property, the better. But getting into the market sooner rather than later might mean compromising. You might not be able to afford your dream home immediately, but the property you buy may be a stepping stone to greater things. If your desired location is too costly, you may have to consider buying in another suburb, purchasing an apartment or a more modest home, or finding a “renovator’s dream”. Remember, from little things big things grow and you can always trade up in future.

3) Learn how to research the right property to buy

Once you know your price range, you can use it to find prospective properties to inspect and identify areas that you can afford. Location is key, but you also have to factor in affordability. Research the areas and properties you are interested in very thoroughly. Consider the capital growth potential, rental yields and proximity to schools, transport and other amenities – this can be confusing, so if you need help just ask us.

When you find a home you like, research it by arranging building and pest inspections to ensure the property is structurally sound and free of unwanted guests. If the property is going to auction, you will need to do this beforehand.

Buying your first home is exciting, but it’s important to seek professional advice. As your mortgage and finance specialist, our services are complimentary and we’re happy to help you in any way we can, even if you’re not quite ready to buy right now. We’ll help you with your budget and deposit saving plan, guide you through the buying process, ensure your financial goals are taken into consideration, and provide ongoing support in the future. Save yourself time, money and stress by getting in touch with us today!

Want to learn more CONTACT US now for a complimentary appointment.

The post 3 Top Tips for Buying Your First Home appeared first on Focus Property Wealth - Perth Mortgage Broker.

Tips for saving a deposit in 4 simple steps.

Focus Property Wealth — Tue, 29 Nov 2016 08:49:01 +0000

See us for a financial assessment - This allows us to organise a loan pre-approval for you and determine exactly how much savings you need for your deposit. We also determine whether you are eligible for the First Homeowners Grant.
Create a budget - this is key. Start with using a small notebook and, for a week, keep note of whenever you spend money. You then use this to see where and how you can start to budget. This will probably include: eating out less often, bringing lunch from home, cutting down on the coffee spend etc. There is also some great resources on the government's MoneySmart website.
Save your income tax returns in separate bank account – by keeping it separate from your normal spending/transaction account you are less likely to spend it and, if you leave it there, it will accrue interest.
Choose cheaper holiday options – rather than that overseas holiday each year, explore some local WA venues. You’ll save money and learn a little bit more about our beautiful state.

Saving a deposit just takes a bit of Focus, Contact us any time as we can help take you through these steps.

The post Tips for saving a deposit in 4 simple steps. appeared first on Focus Property Wealth - Perth Mortgage Broker.

Busting the Housing Unaffordability Myth

Focus Property Wealth — Tue, 29 Nov 2016 08:36:36 +0000

Busting the Housing Unaffordability Myth

For many young first home owners, the Housing Unaffordability Myth says that they have no chance of buying any time soon – you just can’t afford it. But Focus Property Wealth know that for what it is – a myth.

Now is a fantastic time to enter the property market, with housing prices being more affordable than they have been in years. We suggest you:

Look to cheaper suburbs further from city with modest/older house – for example a small 3x1, where you can carry out minor renovations &/or cosmetic improvements inside and out. The idea is to buy a property like this with view to selling after 2- 5 years and upgrading to 4x2 once ready.
Look for shared equity programs - where the government contributes towards the purchase price and holds a portion of equity. After several years, the first home owners can then re-finance their property into 100% in their own name.

The post Busting the Housing Unaffordability Myth appeared first on Focus Property Wealth - Perth Mortgage Broker.