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Home loan activity reached a record high in December, according to the latest data from the Australian Bureau of Statistics, in a sign the property market remains strong.Australians committed to $32.8 billion of mortgages in December, which was 4.4% higher than the month before and 26.5% higher than the year before. The breakdown was:Owner-occupier loans = $22.5 billion (up 5.3% monthly, 12.4% annually)Investor loans = $10.3 billion (up 2.4% monthly, 73.9% annually) One reason so many Australians are entering the market is because it's been booming over the past year.Another is that despite speculation that interest rates might increase later this year, rates are at ultra-low levels and would still be very low even with a rate rise.Want to compare interest rates? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Strong property market drives record home loan activity

So you are a first home buyer in Sydney, but all you see and hear from the mainstream media is doom and gloom. Is it, however, all that bad? Let's take a look at some of the secrets hidden under the clouds.Saving for a deposit:Standard practice dictates that a 20% deposit is required, and this is strongly recommended. There are, nevertheless, certain workarounds. You can borrow up to 95% of the property's value, which reduces the amount of money you'll need to put down. The first home buyers assistance scheme which may be added to the loan will be required in this case. Affordability:Homeownership is becoming expensive for many Australians due to the rising disparity between property prices and incomes. When you're looking to buy your first house, this recurrent headline might be discouraging.Let us not set our minds on a penthouse apartment with harbour views for your first buy. Buying something that fits your present lifestyle and is in a handy location for you, but may necessitate a short commute, is a wonderful beginning to start exploring your alternatives. Spending some time analysing your income and, more importantly, your expenses should give you an indication of how much money you have available each month to spend toward debt payments.It's probably time to consult a specialist at this point. A Sydney mortgage broker can help you figure out how much borrowing power your excess amount translates to, giving you a price range in which to start looking for your first house. You won't spend time or emotional energy looking at houses you can't afford if you know what your budget is.Make sure you stick to your budget after you've created one. That will offer you peace of mind in knowing that what you're about to undertake is something you can genuinely afford. As a rule of thumb, if you've been renting, you should be able to get a loan with similar repayments.Looking through the small print:There's more to purchasing a property than just securing a loan. Here's a quick rundown of the actions to take and who you should consult along the route.To begin, get your finances in order. This indicates that you are aware of your financial situation and may have received pre-approval for a loan, making you a more enticing purchase.Have a conveyancer in mind so that they can rapidly assess any potential acquisition if you need to act quickly in a competitive market. Be aware that there are charges associated with purchasing that must be factored into your savings strategy in addition to your initial payment. Obviously, your solicitor will charge a fee, but you will also have to pay government stamp duty on your acquisition. If you're a  Sydney’s first-time homebuyer, you're likely to get some help, which might include a complete exemption depending on your purchase price. Your solicitor will be able to walk you through any advantages that may be available to you. The Office of State Revenue website has a comprehensive list of First Home Buyer … [Read more...] about Want to Buy your First Home? Facts vs Fiction:

first home buyers, mortgage brokers in SydneyPurchasing an investment property is still one of the most popular methods to invest in Australia. A property should be utilised to increase your wealth and protect your financial future. However, there is a popular assumption that property investing always produces good returns; while this is true most of the time, it isn't always the case. It's important to remember that how well you manage your investment will influence whether or not it helps you achieve your financial objectives. When you consider your rental income and the tax benefits you'll be eligible for, buying an investment property might be surprisingly affordable.Yet, you must first guarantee that your strategy is sound. To get the most out of your investment property purchase, read these recommendations suggested by the professional mortgage broker in Sydney.Picking the appropriate property for the best price:Choosing a property that is more likely to appreciate in value is the most important decision you will make when purchasing a property, therefore getting it at the right price is key.If you are a first home buyer and locate a home you want but are concerned about its true worth, we recommend contacting us or another mortgage broker in Sydney to arrange for an independent appraisal on behalf of a bank. You probably aren't aware, but lenders and mortgage brokers in Sydney have vital information about various regions and property developments, which you should strive to obtain to help you avoid purchasing the wrong investment property. Never acquire an investment property only for the purpose of obtaining a tax benefit; instead, focus on making the best financial decision possible.Make a strategy decision:Another crucial aspect of the planning and preparation phase is this. An investment property, especially in the expanding Australian market, may be a great way to supplement your income, but there are several ways to go about it. To assist you in deciding on the best course of action, refer to your investing goals.Recognize the market and the dynamics in which you are purchasing:Consider what other houses are available in the neighbourhood, and talk to as many people and real estate agents as possible - they'll tell you whether one side of a street is preferred over the other. I often tell rival brokers that I'm looking at a similar home to see what they have to say; it's a great method to gain inside knowledge. Choose the best form of mortgage for you:When it comes to funding your investment property, there are a lot of possibilities, so obtain good guidance since it may make a major difference in your financial situation. It's remarkable how many individuals waste time investigating mortgages in order to save a few dollars a month, rather than investing that time analyzing their local real estate market, where they may make much higher gainsAlthough interest on a loan for an investment property is normally tax-deductible, other … [Read more...] about TIPS FOR BUYING AN INVESTMENT PROPERTY:

Australia's property market enjoyed extraordinary growth during 2021, but a city-by-city breakdown shows that different markets are at different stages of their cycle. Looking at a basket of all Australian homes, the median price increased 22.1% last year, according to CoreLogic. Looking just at the capital cities:Sydney’s monthly growth rate peaked at 3.7% in March and was 0.3% in DecemberMelbourne peaked at 2.4% in March and fell 0.1% in DecemberPerth peaked at 2.7% in February and rose 0.4% in DecemberHobart peaked at 3.3% in March and rose 1.0% in DecemberCanberra peaked at 2.8% in March and rose 0.9% in DecemberDarwin peaked at 2.7% in April and rose 0.6% in DecemberBrisbane (2.9% growth in December) and Adelaide (2.6% in December) are the exceptions to the rule, with both cities enjoying their strongest growth at the end of last year.So the data suggests that two of Australia’s capital cities are in strong growth mode, while the others are experiencing milder growth.Needing a loan? Let's talk.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Property prices growing at varying rates across the country

There's a house building boom going on right now, partly because of the now-concluded HomeBuilder incentive and partly because interest rates are so low.Building work started on a record 149,345 new detached houses in the year to September 2021, according to the latest data from the Australian Bureau of Statistics. If you’re planning to build a new home, please note that financing residential construction projects is more complicated than getting a standard home loan.Lenders require more paperwork – all the usual documents, plus a copy of your building contract, building plans and building specifications, as well as quotes for any additional work you might be planning.The way lenders pay out the loan is also more complicated: instead of giving the money in one lump sum, they distribute it in five ‘drawdowns’ as the build reaches key milestones.If you want to build a new home in 2022, give me a call – I can talk you through your optionsBuilding a house? Let's talk. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Hordes of Aussies building their dream home

With rents climbing steeply in many parts of the country, 2022 might be the ideal time for younger Australians to enter the market.The average rent paid by a tenant living in a capital city was 7.4% higher in the December quarter of 2021 than the same quarter of 2020, according to Domain. So if you’re a first home buyer, you might be wondering – what can you do to save a deposit? Options include:Increase your income – e.g. get a second job, do more shifts, start a side hustleReduce your expenses – e.g. move to a cheaper rental property, cut back on home delivery, buy less ‘stuff’Reduce your deposit – e.g. opt for a low-deposit loan, a family guarantee loan or a spot in the First Home Loan Deposit SchemeDon’t worry if any of this sounds confusing – I can explain your options to you in plain English. When you’re ready to talk, I’ll be happy to guide you through the process.Call me if you're a first home buyer. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about How to escape the increasingly expensive rental market

Home loan activity is at historically high levels, according to the latest data from the Australian Bureau of Statistics.Australians committed to $31.4 billion of home loans in November, which was 6.3% higher than the previous month and 33.2% higher than the previous year.Owner-occupier borrowing was up 7.6% on the month and 17.2% on the year, while investor borrowing was up 3.8% on the month and 86.9% on the year. Want to enter the market this year? Here are three home loan tips:Maximise your credit score – pay all your bills on time and reduce your credit card limitGet started early – it can take several weeks to get a home loan pre-approvalSpeak to a broker – brokers can compare loans and access special deals on your behalfWant to compare interest rates? Let's talk.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Home loan activity strong amidst buoyant property market

Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. Governments impose stamp duties, also known as stamp taxes, on documents that are needed to legally record certain types of transactions.It is one of the most unpopular taxes in Australia, which could soon be scrapped in NSW if government plans get the green light. But what will it be replaced by? And would first home buyers in Sydney be better or worse off under the proposed new model?An Outdated TaxCurrently, stamp duty is one of the biggest upfront costs of buying property in Australia. The stamp duty calculator in NSW calculates that amount you pay based on the property’s market value under a sliding scale. Its rates vary from state to state, and whether you’re an owner-occupier, first home buyer in Sydney or an investor.In NSW, owner-occupiers face an average bill of $34,000 which is payable within three months of settlement. First-home buyers in Sydney are exempt or receive concessions on the tax if they buy an established property costing less than $800,000 or a newly built home valued at under $1 million.Critics, including the NSW treasurer, have slammed the tax as “outdated” and a “relic from a bygone era”. That’s because the rate brackets of the stamp duty calculator in NSW, haven’t been updated since 1985 when the median house price in Sydney was around $73,000.It’s now just under $1 million.The New Replacement TaxThe NSW government wants to replace stamp duty with, what the Treasurer dubbed, the “Netflix of property tax.” Under their proposals, you will be given a choice between paying stamp duty or a smaller, annual property tax based on land value. First home buyers in Sydney would get a grant of up to $25,000 instead of an exemption. There will be no double taxation. So, you won’t have to pay the annual tax if you’re an existing homeowner that’s not planning on moving.Pros and Cons of the Annual TaxThe government is consulting on their proposal with the details examined with utmost consideration. However, if this gets the go-ahead, the new model comes with both advantages and disadvantages.On the plus side, without the financial burden of stamp duty, more first-home buyers could get on the property ladder with the help of mortgage brokers in Sydney. Older people will be more likely to downsize.However, more buying and selling throughout the market could cause a short-term uplift in property prices. As a result, you may end up paying more for a new home. That could leave you worse off under the annual tax, as you’ll likely pay more in the long run. Before getting into the buying process, consult with your mortgage broker in Sydney.Looking for the best mortgage brokers in Sydney? Connect with us today and schedule a no-obligation consultation with our best mortgage brokers in Sydney to find out how we can help you with your home loan.Looking for a loan? Get in touch. Hit the button below to arrange a conversation with one of my … [Read more...] about Will The Proposed NSW Stamp Duty Impact You?