Australian Business News and Times

Business News ,Reports and Times of Australia

Property

Top 10 Tips For First Home Buyers

by Leave a Comment

property australia buyers agent

Buying your first home in any of Australia’s major cities is a difficult task. From getting your finance approval, finding a home that will suit your needs, competing with other buyers and investors at auction and most importantly not paying too much for a property.

For an inexperienced buyer, it is normal for the buying process to take up to six months to a year. We look at the top ten tips to shortening your time on market and getting your weekends back, to save you money.

Tip 1. Finance Pre Approval.
Having your finances in check empowers the buyer to not spend time looking at the wrong area in the wrong price range. It also gives you a negotiating ceiling so you know when to walk away if things get too heated.

Tip 2. Do Your Research.

Understanding what a similar property sells for in a similar area is vital to knowing the market value. When you see something you like, check a similar spec property that has sold in the last three months. This will help you spend your time wisely, on the right property.

Tip 3. Building Inspection.
Once you have successfully completed step 1 & 2 and you have found a house you like. It is important to do a building and pest inspection to make sure your not buying a maintenance nightmare. A typical building inspection can cost anywhere between $550 to $850. It is a worthwhile investment and will help reduce the chance of buyer’s remorse once the property negotiating is done.

Tip 4. Seek assistance in negotiating.

Real estate agents are negotiating pros. An average agent will sell one property each week where an average buyer might only purchase a house once every ten years. Different negotiating tactics apply to different real estate markets.
Buyer’s agents (https://wiserealestateadvice.com.au/home-buyers-agent/) are real estate agents for hire, they serve only the buyer and are employed to get you the best price and selling terms. To save a few dollars, find a buyer’s agent that offers a negotiating-only plan rather than a fully serviced plan. This should save you thousands.

Tip 5. Compromise your criteria for success.

If you keep losing auctions, it is better to adjust your criteria to give you more buying power. For instance, choose a property that may need a light renovation, a three bedroom property instead of a four bedroom property, smaller land allotment or peg back a suburb away from the CBD.


Tip 6. Government Grants.

First homeowner’s grants are a great help to minimizing some of the overheads when it comes to buying a property. To check if you are eligible, visit the state revenue office website for more information.

Tip 7. Conveyancers
You will need to hire a conveyancer to complete your sale. They will ensure all the conditions in a contract are fulfilled and make sure everything is legally signed over into your name. Normally they cost around $1000 per property purchase.
It is wise to get the contract of sale read over by your conveyancer prior to signing any contact of sale. A good conveyancer will provide this service free of charge and warn you of any risky conditions.

Tip 8. Add Clauses To Your Written Offer.
When submitting an offer on a property, every buyer has the right to add protection clauses to reduce their risk when buying. For instance, a ‘subject to finance’ clause or a ‘building-inspection clause’. These clauses can be like a ‘get-out-of-jail-free’ card if something goes wrong.

Tip 9. Don’t give agents verbal offers.
Always negotiate in writing using a Contact of Sale and Section 32’s. This process makes sure the vendor / seller visually sees your offer and responds back in writing using a counter-offer tactic rather than trusting the real estate agent’s story.

Tip 10. Never disclose your budget.
Keeping this secret is your key to saving money on a property negotiation https://wiserealestateadvice.com.au/negotiating-property-price/

Real estate agents highly skilled with negotiating strategies and know how to increase an offer if they know how far they can go. If the agent is kept in the dark they are less likely to empty an unsuspecting buyer’s pockets.

Real Estate Investment: Why You Should Opt for a Preferred Equity

by Leave a Comment

Real estate is considered as one of the best investment sectors. It’s because the property values usually stay stable for long and you can earn a good return on your investment. If the country is economically strong, you’re likely to earn big profits with time.

Preferred equity is another way of investing in real estate sector. You may have heard of the term ‘preferred’ in the stock market where investors are allowed to buy preferred shares of the stock. Although these stocks are relatively expensive, they offer a good ROI.

property investment

When it comes to preferred equity in real estate, you can go for a project that has a low priority in terms of mortgage debt but possesses a higher priority in terms of the equity of project sponsor.

The project financers usually offer a loan within the range of 60-70% of the original commercial property’s value. This way, they’re able to earn profits without risking their investment. Therefore, most mortgage debts are usually funded by the investors. However, when investors are willing to invest even more funds, preferred equity comes into play.

 

Why Investors Go for a Preferred Equity

Preferred equity is more expensive than mortgage debts or senior debt. Although it offers more revenue, the investment encounters more risks. If the property value suddenly drops, the investors can lose their entire investment in no time. But the probability of higher profits attracts investors.

Also, preferred equity holds capital repayment priority. It depicts that even if the commercial property is unable to generate the expected revenue, you can claim your original investment once the property is sold. It reduces the risks to your investment.

Be it real estate or any other investment sectors, you can’t earn a good return unless you’re ready to take risks. By opting for the preferred equity, you can claim benefits from property appreciation, get tax deductions and earn rental income benefits.

A majority of preferred equity investors choose a fixed return on their investment as well as of their investment. It aids them in protecting their original investment and increasing their profit.

A preferred equity usually involves a fixed term of 2 to 3 years. The sponsor can upgrade the interest rate after this term on the basis of the unreturned capital.

 

How to Invest in a Preferred Equity

equityinproperty australia

Investing in a preferred equity can help you earn a good income over time without risking your savings. However, it’s recommended to get in touch with a professional commercial property advisory service to make the most of the investment opportunity. You can visit http://www.stamfordcapital.com.au/ to know more about preferred equity.

 

Stamford Capital is a reliable name when it comes to financial advisory services. They can guide you about the most suitable real estate projects that will work for you. Since they have contacts in the industry, they can suggest investment opportunities on the basis of your financial needs and goals.

All in all, a preferred equity is a feasible way of investing in commercial real estate. With professional guidance of Stamford Capital Australia, you can further increase the return on your investment.

Why Listing Your Property Online Will Ensure A Sale

by Leave a Comment

The world is more connected today and the internet is quickly changing trends. Everyone who needs anything looks to the internet for solutions, which includes searching for the perfect home. As a home seller, there are tons of benefits for listing your property on the internet.

property and websties

The Internet is the Largest Source of Inquiry

A lot of people rely on the internet for property search. This is because it is a lot easier to just search for the particular features you want in a house and input the area where you are looking for than rummaging through the classifieds to see if any of the places match your criteria. In Australia, traditional media forecasts losing billions of dollars in the next four years because ad spreads are moving towards online options. Even if you signed up with a realtor, the first thing they will do is list the property on their website.

Online Advertising Lets You Dominate the Market

You may not have an agent by your side but you still stand a strong chance of making a sale through online marketing. You could be working from home on your computer and still be able to portray the good things about your place in a professional manner. Think about it, the realtor is probably doing the same thing, except he or she wears a suit.

The Internet is More Interactive than You Think

Unlike magazines and newspapers, which are restricted by space and force you to cut out words in the ad copy and leave you hoping that someone will call for more details, the internet allows you to freely boast about the features of your house. You can first view a website template yourself to see what is required. The basics are listing the details and then adding in pictures of every nook and cranny in the house. Potential buyers don’t even have to make the trip out to the house, and they will appreciate this convenience.

It’s Fast

The internet can reduce to half the amount if time that is required to search for a home. One of the advantages of the internet is that homebuyers can start searching for suitable places including yours without having to deal with a real estate agent first, which just extends the whole process. In fact, buyers are more confident in the properties they search themselves, they can do a comparison between yours and other properties online, so that you know if they reach out to you, they did it after doing some research and are to an extent serious about their interest in your property.

Exposure through Social Network

A lot of websites that list houses have social media pages with thousands of followers. When you list your house with them, you should know for sure you are reaching out to all of these people, making the whole marketing process a lot more effective. These companies have their own creative copy and posts to attract potential homebuyers so you don’t have to worry about it.

The Hidden Costs of Buying a Home

by Leave a Comment

buying a house in australia

Buying a house is not always about being able to meet the sale price. Forget the money you burn on petrol, driving from one house to the other, there are several other higher fees, taxes and charges that come into play once you’ve zoomed in on your dream home and have decided to put in a bid for it. To avoid an expensive shock later on, start including these expenses into your budget right from the very beginning.

Home inspection costs

Never buy a home without conducting both a building inspection and a pest inspection. Depending on the size of the property, these inspections may cost you anywhere from a few hundred dollars to $1,000. But they can help you identify problems that you were previously unaware of and can now use to bargain with the seller to bring down your purchase price. If the building inspection unearths some serious problems, you may also have to decide whether you want to continue with the deal or not.

If you are buying into a strata development, it will be a good idea to have a strata inspection done to make sure that all records are in proper order.

Lender’s fees

Since all lenders do not have the same charges, an outright comparison is not possible. But almost all lenders charge a one-time establishment fee, which is usually in the range of $500 to $1,000. Some lenders may charge a loan application fee, which is sometimes waived off to attract more business or clubbed along with the establishment fee. Other charges include monthly or annual account keeping fees, documentation charges, valuation fee and settlement fee.

Legal costs

The legal transfer of ownership of the property, otherwise known as conveyancing, may cost you a further $1,000, again depending on the size of the property. The procedure is normally performed by a solicitor, a realtor or a professional conveyancer, though you can cut costs by buying a do-it-yourself kit for about $100. It is up to you to decide whether the amount you save is worth the headache of trying to do the conveyancing on your own.

Stamp duty

Depending on your state and the purchase price, you will have to pay a stamp duty of three to five percent. However, some states offer concession or exemption for first-time homeowners under some conditions.

Insurance

If you are putting in less than 20 percent as a deposit, most lenders are going to insist that you buy mortgage insurance. Mortgage insurance is to protect the lender in case you default on your payments and will cost you an additional few thousand dollars.

Moving and settling costs

Depending on where you are moving from and how much stuff you have, you may need to hire a professional mover. If you are planning to rent a van and transfer your stuff yourself, you can cut down costs. After moving into your new home, you will have to spend a few more hundreds for installation of utilities and cable service. If you’ve moved into a strata building, you may also have to shell out additional money for strata fees.

Kurt Jacobson is a snowboarding enthusiast with a background in real estate. Having moved 11 times in the past nine years, he thrives on helping others learn from his experiences. When he’s not out shredding the mountain, he writes about all things home related for the website HouseHunter.co.

Home Loans – A Buyer’s Guide

by Leave a Comment

the home loan guide

Home loans and mortgages are offered to a wide variety of different people to help them when buying a house, flat or any other type of property. They are one of the most popular ways of securing the additional finances you need to make such a big investment. It is important to note that when taking out this type of loan you will need to pay back an extra fee on top of what you have borrowed. You get the added benefit of being able to make smaller repayment amounts at a later date, and this is often the greatest deal for most people, as it makes payments more manageable. There are various different types of home loans available, yet it all really comes down to the bank you borrow the money from. Let’s take a look at the various types of home loans banks offer below.

Different types of home loans

1. Fixed rate home loan– With this type of home loan there is the advantage that you don’t have to worry about interests going up, as you will pay a fixed amount for a set period of time. This can provide certainty and make it a lot easier for you to manage your finances. Not only that, you will find that you can acquire up to 95 per cent of the loan. This is a popularoption. You can acquire this service over the Internet as well. For home loans, visit Newcastle Permanent.

2. Real deal home loan – This loan has its own special features. You can acquire the loan up to a maximum of 95 per cent and it offers a reduced interest rate of 0.25 per cent p.a. for the first three years. After this, the loan regains its normal interest percentage.

3. Introductory Discounted Variable Rate Home Loan – This type of loan offers you a reduction in repayment for the first year and afterwards reverts to the normal interest rate. This makes payments easier to manage in the first year, giving you a bit of extra time and cash to start off with.

4. Premium Variable Home Loan–If you desire a variable interest rate but you are still interested in additional features, this is a great option to consider. Furthermore, you can also acquire this loan for up to 90 per cent of the actual home amount.

5. Real Options Home Loan – With this type of loan there are varying interest rates. However, you have the advantage of not needing to worry about any extras, such as accounting fees.

6. Real Equity Credit Facility – This is a variable credit facility, which is secured against your property, so that you can access your equity directly.You can then use this equity in order to help you build your wealth. There are no charges or establishment fees and this loan acquisition is up to 90 per cent of your home.

7. Premium Plus Package – This offers one of the lowest home loan interest rates with an innumerable amount of benefits along with it. You can borrow up to 90 per cent of your home and repayments can be made at any given time within the specified period.An experienced and dedicated bank should have the capability to offer these various home loan services.

To conclude, it is very important for you to know the type of home loan you are interested in, the amount you want to pay by the end of repayment and for what specified period you need it. This will help you to narrow down your choices and get the loan that is suitable for you.

7 Things You Can Do When You Own Your Own Home

by Leave a Comment

Owning your own home is a great dream of many young Australians, or even many older Australians who haven’t quite managed to get there yet!

home loans

The reasons for wanting to own your own home are rich and varied, and different from person to person. It might be that you love painting the walls of your home every six months. If so, then a rental house probably isn’t for you! Other people like to build things in their living room out of clay and Papier-mâché. This sadly will damage the floor of a rental house, so if this is you, you big artist you, you had better start saving for your own home now! If you’re worried about the finance side of things, why not browse home loans on the Homestart website for some advice and inspiration?

We have taken the liberty of compiling a list of seven things that you can do when you own your own home as an added incentive! So without further ado, let’s get started.

1. You can paint the walls, the ceiling, and the floor any colour that you like! You can also paint them any time you like as well, which means that you can constantly update the living room to suit your mood if you so desire! If you’re a big decorator but concerned about the cost of the paint why not think about getting some wall paper or fun coverings?

2. You can decorate the place however you want and not worry about putting nails in the wall for the paintings! If you have a particularly large collection of art, this is going to be a big game changer for you! Finally you can have the gallery room you have always dreamed of!

3. You can have people around in your backyard and put down a giant slip and slide, knowing that the grass in’t going to be an issue. If you ruin it, it’s your own fault – no landlords to worry about!

4. You can renovate when ever you want to change your home around, without having to ask permission. Think back to all the share houses that you lived in when you were studying and travelling around… I bet there were some rooms that you could’ve put some extra love and care into! Well now you can flex your designer muscles whenever you feel like it. Don’t like that wall? Great! Knock it down!

5. Have a spare room why not think about renting it out on Airbnb for some extra money? It might be just the spare cash you need to start planning a renovation, which after all you can do whenever you want, because you’re a homeowner, remember?

6. You can move out of it and get tenants in to rent it while you go travelling overseas, giving you some pocket money to play with! This one is actually a really key benefit to owning your own home, because the one of the purposes of owning your own home – apart from being a home for you to live in – is that it’s a way to generate money for retirement and to invest again.

7. You can use the money from the home that you own in the form of leverage to buy another house as an investment property. Now, if the last item was key, then this is completely integral to your wealth plan! Think about buying a house not only as a home but also as an investment for your future. Good luck, and happy saving.

The best things come to those who wait (and those who save) so if this list has inspired you, get started today. Don’t waste another moment!

Things to consider when you are a first home buyer

by Leave a Comment

Being a first home buyer in Australia you are going to navigate your way along several streets, societies, and complexes in search for your ideal home. With investor market already rolling over high sentiments, it becomes even more difficult to lay your hands on your dream place. You might be having your pre-approvals, and budget ready, but still you are yet to arrive at the final conclusion. Hundreds of needs to answer, issues like location, new or established, amenities on offer, the number of your needs addressed, future concerns all make the task even more daunting, but our few simple tips can make the process much simpler one.

Location: – Before purchasing any Australian property you must understand the value of that property. Purchasing property in cities might be expensive, but remember bricks and mortar are not all you want. Before purchasing any Australian property you must consider the returns you will get upon your investment and for obtaining better return location is a vital component.

After cost and return, next extremely important thing to be concerned is proximity to the things that matter most in your life. You would like to purchase a property near to your workplace, friends, family, school, and shopping complexes. Another prime component to consider is transportation costs, living a long way from your job or from your frequently go-to-places will add up to your monthly mortgage instalment. This can adversely impact your household budget. Additionally, reanalysis your lifestyle coz if you are a coffee freak, there is no point living far off the cities.

Amenities: – With society becoming so advanced, luxuries play an extremely important part while unconsciously molding our choices. For those who work, easily available and frequent transportation would be essential. Supermarket, cafes, and restaurants would subtly direct the choices of young couples. Health is another vital factor, nearby medical assistance would modulate the choices of parents with young children. With children, proximity to school with an excellent reputation is very important as you will take this route almost 300 days a year.

Changing needs: – Young couples while purchasing their first home should ensure that their home as proper expansion space. If you are planning kids, it becomes extremely important to ensure that your home has sufficient space for them to play and grow. Additionally, if you plan to stay longer ensure that your fortress has space for an additional car parking. While it would be impossible to predict each and every need, couples must plan up to a minimum of 5 years.

Planning will prevent from surprised shock and will help your mansion sustain your changing needs.

New dwelling or Established: – If you are purchasing your first home just as an investment and don’t have plans of moving in for a while you should go for a new dwelling. Purchasing a new dwelling will allow you to renovate the ambience according to your taste but will cost bills simultaneously. Established home will be a better option for couples planning to make their home as their permanent address. Established home will be near to markets, will save you time and hard work required in renovating the property. You may go straight down and start enjoying your place.

10 tips on getting approval for a housing loan in Australia

by Leave a Comment

what is non conforming loans

I had a friend who approached me recently to get a loan and suggest a good broker. She was applying for a loan and got rejected multiple times. The first thing I told her was to stop and take a break from applying for loans as she was just making things worse for herself.

Banks often have a poor rating for people who applied for loans at many places and have been rejected, so make sure you really either get a good broker who will get you a loan with minimum tries for a loan from the right institutions and not further lend to your bad credit record by multiple applications for loans.

There are other options like a non –conforming loans that people who have been rejected for loans might qualify for. Non conforming loans assist those borrowers who do not meet standard lending criteria These loans often help a person in business who needs money, or to renovate a home or pay a tax debt.

 

how to get a home loan

 

First checkout, 7 reasons why you could be refused a home loan

 

1. Avoid paying bills late, where it leads to your bill being collected by collection agencies or solicitors.

2. If you have too many loans already and a low income you got very low borrowing capacity and so can be refused a loan.

3. You can increase you borrowing capacity by paying of personal loans , credit cards being paid off and cancelled, and having lower outgoing expenses

4. Don’t become bankrupt or insolvent as this will appear on your credit file and stop you from getting loans at least for a minimum period of three years.

5. Make sure when you apply for a loan that your chances of getting the loan are high, loan brokers normally know which bank has more relaxed rules compared to another bank or credit union

6. Having savings for a deposit helps you gain loan approval. Conventional lenders typically require at least a 5 percent down payment, while the minimum on FHA loans is 3.5 percent.

7. Regular employment- A steady regular employment history lends to your good record as the bank can see a regular income coming in. if you have a permanent job it adds even more to your good credit file.

8. Where you are seeking to buy your home are also sometimes factors considered for your home loan. A poor rated suburb of fire prone zone can further tighten lending criteria.

9. If you are an investor and already own other investment properties, the LVR on those properties can affect your borrowing capacity for the next loan you take.

10. Check your credit history through veda ( credit history organisation)

 

low doc loans in australia

 

There is a loan that some institutions offer called the “low doc loan” which is becoming scarcer as the markets tighten up. If the banks, building societies and credit unions won’t lend to you because you’re self-employed, newly arrived in the country or have a poor credit history, consider the "low doc" loan market. These loans can be risky if the value of your property declines rapidly due to the maximum borrowing capacity (95 %) taken on these loans. These loans are also called non-conforming loans and the interest rate can be generally a little bit higher.

Check out http://www.non-conformingloans.com.au/ to get further information on non –conforming loans

Mortgage Brokers Make Home Buying Easier

by Leave a Comment

mortgage broker and loans

For most people, buying a home is one of the biggest investments they’ll ever make. Finding a house and making an offer are just the tip of the iceberg. The real work begins with securing the right loan and successfully making it through the closing process. Navigating those murky waters can be confusing, and finding the best deals can seem downright impossible. A great way to simplify matters is by hiring a mortgage broker.

Top Reasons to Hire a Mortgage Broker

Like many people, you may be uncertain about paying someone else to help you find a suitable home loan product. Most people find the cost to be well worth it, though. A few reasons include:

  • Get the Best Rate –
  • Even if you have impeccable credit, zeroing in on home loans with the most competitive rates is a tall order. It’s in your best interests to pay the lowest interest rate possible. Doing so can save you thousands of dollars over the life of the loan and will result in lower monthly payments too. Mortgage brokers are well-versed about the available home loan products. They assess clients’ credit reports and ratings to determine the most viable options. That’s a lot easier than sorting through them all yourself.
  • Take Your Pick from More Options –
  • In addition to being more cumbersome, taking matters into your own hands when looking for a home loan means missing out on many great opportunities. Mortgage brokers generally have access to home loan products that aren’t available to the general public. Just make sure that the one you hire isn’t committed to just a small handful of lenders.
  • Enjoy More Flexibility –
  • Because a mortgage broker acts as a go-between, he can help smooth out the inevitable bumps that you’ll hit on the road to buying your home. For instance, your mortgage broker can help negotiate better terms for you and may be able to help you qualify for loans that you’d otherwise never be considered for in the first place.
  • Get Extra Help –
  • Most mortgage brokers offer services that extend above and beyond pairing buyers with home loans. For instance, many can work with you to help you improve your credit before applying for a mortgage. Others will guide you along through the underwriting process and keep you informed about how your loan is progressing.

Why put up with the headache of finding the perfect home loan yourself when you can hire a mortgage broker? The fees can often be rolled into your closing costs or even into your home loan, so there’s typically no need to pay upfront. Hire a mortgage broker before starting your search to enjoy the smoothest process possible.

By Garry Dowd

Types of Low Doc Products and Options

by Leave a Comment

Everyone doesn’t have a specified regular income, and when a person doesn’t have a fixed income or cannot provide documents in support, he become ineligible for a home loan. For the benefit of such people low doc home loans have been introduced, which have now transformed into smaller mortgage finance solution for such people.

how to get low doc loans

Getting a home loan isn’t as easy as it looks first up, there are many formalities associated, which makes it really lengthy and cumbersome process. However, when you want to purchase a property, you will need a home loan. And to get a home loan, you will need proof of income, assets and liabilities etc to prove your credit worthiness.

Low doc residential loans are designed specifically for self-employed people or casual workers, who have income and assets, but are unable to provide the financial documents required at the time of application for loan. To apply for a low doc loan or low document loan, a person needs to file in a written application, this application works as a self-declaration of income derived from business for casual workers and self-employed. People with bad credit history are also eligible to apply for low documentation loans.

Benefits of low doc home loans

· These loans are suitable for people who do not have financial documents to prove their regular income

· Low doc loans require no or very minimum paperwork at the time of application.

· People with bad credit history can apply for a low document loan

· Low doc loan is passed on self-verification, applicant himself states his income. No financial verification needed

Types of Low Doc Products

· Low doc 60: Under low doc 60 an applicant can get a Loan to Value Ratio of 60 percent. The applicant needs to provide an application for self-verification along with accountant’s declaration. The loan can be taken for purchase of refinance.

· Low Doc Construction: The loan covers up to 80 percent of the value, and can be used for purchase of refinance.

· Low Doc Platinum: The loan covers up to 80 percent of the value; it requires self-verification and accountant’s declaration.

· Lite Doc Express: The loan covers up to 80 percent of value. Self-verification and accountant’s declaration is required for application.

· Low Doc Easy: The loan covers up to 85 percent of Loan to Value Ratio. Application for Self verification along with accountant’s declaration is required. The loan can be used for purchase of refinance.

Low Doc Loan Options

Various types of low doc loans are available, some of them include:

· To purchase property

· For refinance

· Low doc loans for business expansion

· Loan to pay tax debt

· Loans with no mortgage insurance

· Low doc home loans to purchase or refinance residential land

· Low doc construction loan to build more residential property

· Specialist low doc loans for applicants with bad or not so perfect credit history

Author Bio:  I’m Andrew a specialist mortgage finance consultant of Red Rock Mortgage Group an independent mortgage finance company with 7+ years’ experience in writing finance topics.