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Owning Property

Cheers to new home
Oct 26

Five Things First Home Buyers Need To Know

Before you decide to purchase your first property there are a number of things to consider, including your current personal circumstances and financial status.

1. Think about why you want to buy a home

Do you want to live in it or will it be an investment property? This can help determine the kind of loan you apply for and home you buy, depending on your short and long-term plans.

2. Research potential properties and loans

Knowing the market is crucial. So do some research on the areas you are targeting. Check out auction clearance rates and recent sales, as well as price trends in the area. Once you are aware of what you are looking for and the approximate price, the next step is saving a deposit.

While some lenders will offer loans if you have saved less than the usual 20 percent deposit, being able to show a record of good saving habits will aid in getting your loan approved.

Then, when you talk to your local MFAA Approved Finance Broker about applying for pre-approval on the right type of loan. Ask for their help to work out what you can afford in terms of repayments.

 3. Factor in other costs involved

Depending on the property, there can be a number of additional costs. So ask your finance broker what other payments you will face. This can include, but isn’t limited to. Stamp duty, loan establishment fees, legal and conveyance services, utilities, property insurance, maintenance, and lenders mortgage insurance.

 4. Think about your future

Just because your current situation allows you to get a home loan, that doesn’t automatically guarantee that you will still be able to service it in five years’ time. Is there a possibility your role at work will change? Are you considering going back to study and reducing your working hours?

 5. Get professional help

With so many things to consider, getting professional help is highly recommended. There are many experts in the industry and it is in your interest to use them for tasks such as property checks, pest checks and any other legal queries. Going it alone can prove costly. Avoid nasty surprises down the track by getting the right people to do the appropriate checks for you from the beginning.

Owning Property by admin
berwick home
Sep 8

Looking and can’t find your perfect house?

Need help finding your dream home? We offer a free service that allows you to view properties not yet listed for sale by real estate agents. There is no obligation associated with this service and only requires minimal information to join up. Click here to access this free service

 If you are looking for a home loan to suit your needs, Berwick Mortgage Broker can assist. We are a full service mortgage brokerage that can help you access hundreds of home loans offered by an extensive panel of lenders. There is no risk as our services are at no charge to you.

For most people, an attractive interest rate is one of the most important features. For others it is having the flexibility of a range of benefits that a package may have.

At Berwick Mortgage Broker we offer personalised one to one service in helping you find the right loan. We will explain in detail the different products and features on offer and help find the right loan for your needs.

We understand that people have full-time jobs and find it hard to meet during business hours so we are happy to meet with you, at a time that suits you. Mortgages are what we know best, so take advantage of our expertise, after all, we charge you no fee for using our service. Contact us now for a obligation free chat.

Want to know what your repayments could possibly be? Click on the link below.

Mortgage Calculator

Owning Property by admin
Key
Nov 17

How to increase your borrowing capacity

 

Maximising the amount a lender will hand over to you isn’t about trying to take on unmanageable levels of debt. It’s a matter of taking a few simple but smart steps that could mean the difference between toiling in that ‘fixer-upper’ or owning your dream home.

 

1. Shop around for lenders
Different lenders define income in so many different ways that it pays to use a credit adviser who knows their way around what’s included and what’s not. One lender may allow share dividends as income, while another lender may not.

 

2. Shop around for the right mortgage
A good credit adviser will help you choose the most appropriate mortgage. Even with one lender, your borrowing capacity can vary due to the loan type that you choose. If you add features such as a line of credit this can reduce the amount you can borrow.

 

3. Update your financial records
Try to have your PAYG income tax return as up-to-date as possible. This gives a better historical view of your income than just the two most recent payslips.

 

4. Check your credit rating
Check your credit rating before applying for a mortgage. Due to changes to the Privacy Act from 12 March 2014, your rating may not be as healthy as you thought. The national credit reporting agencies are Veda, Dun &Bradstreet and Experian. Find out more here.

 

5. Roll your debts into your mortgage
Unsecured debts such as personal loans and credit cards have expensive monthly repayments, and these monthly repayments cut in to the amount you can repay on a mortgage.

 

6. Reduce debt and credit limits
If you have unused credit cards with limits that are more than you need, then cancel those cards. Also, cancel any other cards – such as department store cards – that give you credit. Every $1000 on a credit limit – even if not spent – detracts from the amount you can borrow.

 

7. Investigate family pledges
Guarantor or family pledges may let your parents or family take out a second mortgage on a percentage of their own property to guarantee repayment to the bank if you fall behind.

 

8. Consider shared equity
Some lenders will give you a larger mortgage in return for a certain share of the profits when you sell. If you don’t make a profit, then the lender does not take a share.

 

9. Take a long loan

While 25-year mortgages have been the norm, that’s changing to 40 years in some cases. A longer loan cuts your repayments, but increases the total interest you will pay over the life of the loan.

 

10. Save more of the deposit
Lenders look for consistent saving records, preferably for more than six months. Saving more can be as simple – or as hard – as doing without that extra coffee, or taking your lunch to work each day. It all adds up and reduces the amount you need to borrow.

Home Loans, Owning Property by admin
painting
May 23

The perfect property at an affordable price – it’s not a myth

So you’ve found your dream home, but it’s in need of a little TLC. While others may see this as a deterrent, this is actually a great opportunity to nab the house of your dreams at a price tag that’s within your means. Here’s how to tactfully negotiate the price without ruining your chances of securing the property.

Tip #1: Never enter a negotiation empty-handed

Whether it’s hiring inspectors for a building and pest report, or obtaining quotes from tradespeople, obtaining facts and figures will give you ammunition when requesting a price reduction.

“Even if it costs you extra, it’s worth getting all the information before making your offer. People often underestimate how much repairs will cost,” says the real estate agent.

Tip #2: Separate your emotions

The most tactful way to negotiate is to eliminate all emotions, advises the real estate agent. “Try to separate yourself from the outcome and present your side logically. The owner is under no obligation to accept what you offer, no matter how well you present your points. So if things don’t go your way, being negative won’t do you any favours.”

Tip #3: Remember this is someone else’s house

Negotiation is a two-way street, so in order to come to an agreement, concessions will have to be made on both sides. “Try to understand what is important to the owner,” advises the real estate agent. “What can you offer to counteract the price reduction you’re after? Perhaps a longer settlement period so they can find a new home? It’s little enticements like this that can often be much more valuable than a couple of extra dollars.”

Tip #4: If you don’t ask, the answer is always going to be no

“I’ve heard a lot of weird and wonderful requests when it comes to purchasing a house, so really you can ask for anything. Whether or not it will be accepted is another thing,” advises the real estate agent.

From wanting certain fixtures included in the sale price, to extra inspection requests, you won’t know what the owners are happy to give if you don’t voice your desires. However, before you go wild with requests, think about what is most important to you, as realistically the owners aren’t likely to budge on everything.

“In theory, you can inspect a property as many times as you like. In practice though, it will depend on your agent’s availability and whether or not the owner is currently living in the property,” says the real estate agent. “You might put off the owner if you are constantly disrupting their day, so as an alternative I’d suggest visiting the street at different times during the week. You don’t have to enter the actual home to get a vibe of what the neighbourhood is like.”

A house that requires a bit of repair work is a great bargaining tool and generally an opportunity to secure a good price. With the advice of industry professionals, such as Berwick Mortgage Broker, securing your dream home may be closer to a reality than you think.

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Saving Money by Alan Sarkissian