The difference between good and bad debt
I’m sure that most of us would love to live our lives debt free. Wouldn’t that be lovely! No home loan, no credit card debt – just every cent that you earn being spent – or saved – however you choose. But there are two types of debt. Good debt and bad debt. An example of good debt is a home loan or an investment loan. You’re borrowing money to buy an asset that will appreciate in value or generate income through rent, and then Read More +
Preparing your home for sale
There are two crucial steps to follow when it comes to listing your home for sale: Find a great real estate agent Present the home so that you’re going to get top dollar Finding a great real estate agent can be tricky. Don’t go with a friend or a friend of a friend unless you know they’re got a great track record. Don’t go with the agent who promises you the world – unless you know people who they’ve actually delivered for. Don’t go with Read More +
Why is pre-approval on your home loan so important?
Applying for pre-approval on your home loan is important for three major reasons: It gives you a great indication of how much you’re able to borrow It lets you know if there are any potential problems that can be sorted out before you actually need the money. It lets the vendor know that you’re a serious buyer. 1. Borrowing power Knowing how much lenders are willing to lend you is crucial to your search for property. Lenders have a formula of how much risk they’re Read More +
Principal & Interest or Interest only
When you’re securing a loan to buy a property there are a few things to consider, but possibly, one of the biggest considerations is whether to repay principal and interest or interest only. For home owners, principal and interest is the most common repayment method. For investors, interest only is common. Let’s take a look at the difference: Principal and interest loans You are required to pay off the debt (the principal) as well as the interest with this type of loan. This means that Read More +
Renovating – love it or hate it?
Renovating is a word that either fills you with dread or excitement. Personally, I can understand both responses. The thought of making all those decisions, living in a worksite, budgeting and dealing with tradies can make you feel overwhelmed before you even start. But there’s also the excitement that you get to make all the decisions. You choose the floor coverings, the wall colours, the tiles, the fixtures, fittings, appliances – everything! You can make whatever you’re renovating into your dream kitchen, bathroom, backyard, bedroom, Read More +
It looks like the property market is back in full swing!
It seems like the property market is back in full swing! There are more properties being listed, which is giving buyers more choice. If you’re planning on buying, please make sure you have pre-approval in place so that you can take action when you find the right property. Besides buying activity, this year we’ve also been working with a lot of clients who are reviewing their current home loan structure and we’re seeing some real savings. Whether it’s through refinancing or consolidating debts, we are Read More +
Do your homework before buying property
Buying a home or investment property is not something that most of us do without a whole lot of thought and consideration. It’s probably the biggest financial commitment you’ll ever make, with the most potential to make you a lot of money if done well. Research is vital to the success of your investment. If you’re buying a home to live in, you need to make sure that both the home and neighbourhood will work for your lifestyle now and for the next few years. Read More +
Leveraging your home to buy an investment property
Buying a home is most often the first priority when it comes to real estate. But there’s no need to stop there. As you pay off your loan and as the value of your home increases, you can use the equity that you have built in your home to buy an investment property. Depending on your circumstances and the property you buy, it could cost you a minimal amount each year to own the investment property and it could even reduce your tax obligations. If Read More +
2020 – what will it bring to the real estate market?
A new year always brings new predictions. A new decade, even more so! Coming off the back of a price correction that has destabilised the real estate market and waned confidence, we’re now well and truly into recovery mode and property experts and economists across the country are predicting strong growth for 2020. Real estate expert John McGrath claims that we’ve entered a new “moderate growth cycle”, which is the strongest he’s seen in 30 years. The three drivers of this growth are the incredibly Read More +
Is it time to review your home loan?
How long have you had your home loan? How long since you’ve reviewed it or re-financed? Do you think you have built some equity in your home that you could put to good use? If your home loan is more than a couple of years, now is the time to make an appointment and take a look at your options. Re-financing can cut years off your home loan or reduce financial stress. It also gives you the opportunity to consolidate any debt that you’re carrying Read More +
