buyerschoice Archives - Berwick Mortgage Broker

Mar 26

What is the best time of year to buy a house?

While spring is renowned as the time that sellers dust off their properties and place them on the market, this doesn’t mean it is necessarily the best time for buyers to go shopping.

One of the biggest issues with shopping in spring is the flood of other buyers looking to snag their dream homes, which increases competition and housing prices.

“There is typically a seasonal uplift in buyer numbers over the last quarter of the year, which means the benefits of a higher number of options to choose from are offset by a higher number of prospective buyers,” explains CoreLogic RP Data’s Tim Lawless.

“Buyers may be better off when there are fewer buyers around in the winter months, at least from the perspective of being able to negotiate hard on price.”

Although there is a lot more to look at during spring, there isn’t necessarily more to choose from, depending on your individual circumstances and finances.

It may be just as beneficial for buyers to look around during slower months, as this will give them more time to consider properties, more time to negotiate and more time to organise their loans.

“Seasonal factors will always play a part in the dynamic of the housing market, but so too do other factors that are harder to anticipate such as changes in the regulatory framework that might make obtaining finance easier or harder, changes to economic circumstances or other things that can be absolutely unexpected,” Lawless says.

Taking all of this into consideration, the best times to buy are as varied as the people looking. It is a good idea to assess what’s most important to you before following the crowd.

“Buyers are probably best positioned to use the timing that works best for them and their budgets rather than waiting for a particular time of the season where conditions might be more or less favourable,” Lawless says.

Before you hit the open home circuit, speak or write to me about how to finance your property purchase.

slide by Alan Sarkissian

Dec 16

How to have a successful open for inspection

When you’re selling your house, the key to a successful open for inspection is to make potential buyers feel comfortable. You want to show your property’s best side, and allow people to see themselves living in their new home. We’ve put together some handy tips to help increase your property’s attractiveness on inspection day.

Put on a good face
Potential buyers will be inspecting your house from the moment it’s listed. They’ll drive by to check out the neighbourhood and see how things look from the outside – so this is the moment to make a good first impression.

Tidy the front garden, keep the verandah clear, hide the garbage bins and remove junk mail from your letterbox. You can add planters with colourful flowers to the verandah if you don’t already have them.

Remember to keep the external lights on at night, and make sure the front of the house – the face it presents to the world – is clean, freshly painted and well maintained: no sagging gutters, clogged downpipes or broken external blinds and shutters.

Clean until it hurts
Your house needs to sparkle and shine in every room (including the kitchen). Keep the sink clear of dirty dishes, put fresh (or even new) towels in the bathroom, make the beds and polish all tabletops, dressers and bureaus.

It can help to empty the dishwasher and keep the fridge clean and orderly – potential buyers might look in there, too.

Cut the clutter
Put away anything that isn’t essential to everyday living; take piles of magazines off the coffee table, clear away mail from the sideboard or wherever you keep it, and organise desks and tabletops.

Also remove knick-knacks and other personal items that might be on display, although don’t strip the place bare. It still needs to look like someone’s home.

Tone down the quirk
The purple beanbag? The kitsch op-shop vases? Your furniture says a lot about you, but too much personality can crowd out a potential buyer, so put the really ‘you’ items away during inspections. Buyers need room to project their own personalities onto your home.

Let the light in (and the smells out)
Swap dark, heavy window coverings for lighter blinds and curtains, and open them up to let natural light in. Also, consider repainting darker rooms in light, neutral colours.

Give your house a good airing before each open for inspection. Smells that you might not even notice, from cooking, pets or smoking, for instance, can be quite off-putting for others.

People can be sensitive to all types of smells, so while subtle floral or oil diffuser aromas are good, don’t overdo it with the ‘nice’ scents, either. The aromas of baking bread and freshly brewed coffee are attractive and homely – but are hard to organise if you’re not around.

Make yourself scarce
Buyers needs to feel like the home is almost theirs – having the current owners hanging around can make them feel like they’re intruding. It may also discourage people from telling the agent what they really think about the home – an important source of market intelligence.

Oh – and take the dog with you. Not everyone likes pets, some people are scared of dogs, and a roaming pooch will get in the way.

Presenting your property in the best possible light can improve your chances of a sale. With a bit of preparation, some elbow grease and attention to the finer details, your home will be ready to make its best impression on potential buyers.

Owning Property by Alan Sarkissian

Jul 19

Finance Broker or bank?

When you’re looking for a home loan, you could go to a finance broker or to a bank. While a bank will only offer you its own products, a credit adviser is an industry expert who will take the guesswork out of finding the mortgage product that suits you and your needs.

It’s understandable that finance brokers are now the number one choice for consumers who are seeking a home loan or to refinance an existing loan. Businesses are also engaging finance brokers to help them with their finance needs from car and equipment leasing to loans to help their businesses expand.

What can a credit adviser do for you?

The leg-work

Finance brokers already know the industry, the lenders, their products and their requirements, saving you a lot of time and energy on research. They will also put the time into finding out about your particular credit situation and have a wealth of experience to draw on to help you simplify it.

Translate industry jargon

Finance brokers are able to make sense of what loan documents and lenders are saying – put it into lay-person’s language, so to speak.

Get you what you want

Advisers will determine your borrowing needs and fiscal ability, and choose the only an appropriate product to suit your requirements.

Give you a broader choice

Being brokers, finance brokers have to offer a larger selection of loan products. While a bank can only offer you its own products, finance brokers can help you choose from a selection of loans provided by different lenders.

Help you compare apples, oranges and the whole fruit basket

Finance brokers have the knowledge and tools to compare often hundreds of products and you get a loan suitable for your circumstances and needs.

Find you a good deal

Loan providers are always spruiking a special deal or two, and these could make a big difference to your repayments or success rate. A finance broker will know which of the deals on the market at the moment will be appropriate for you.

Act as your advocate

A good finance broker wants the best for you, the client. They will be your cheer squad, middle-man, team player and coach throughout the process.

They’re in it for the long haul

A finance broker won’t just love you and leave you – they will oversee and manage the loan’s progression right through to the end on your behalf. By the way, ‘the end’ isn’t when you sign the documents and buy your property; you can expect your finance broker to keep track of you and your changing needs, helping you should you need to switch products or wish to purchase another property.

The key is to choose a finance broker who is MFAA-accredited. The Mortgage & Finance Association of Australia (MFAA) is the peak national body representing professional finance broker across Australia, and all members must adhere to professional development standards and a stringent code of conduct. Find an MFAA-accredited broker at:

http://www.buyerschoice.com.au/alansarkissian/

An MFAA Approved Finance Brokers is much more than your average mortgage broker.

Home Loans by Alan Sarkissian

Jul 5

Top financing apps and tools

Whatever your reasons, understanding your budget is key to living a comfortable life. Whether you’re saving for something in particular, getting out of debt or just trying to stop spending so much money on food, noting your daily spend can definitely help resolve any issues. Here are five apps that can help you you stay on top of your budget.

Money Health Check

Money Health Check assesses your finances and lets you know whether they’re in need of some tender loving care or whether you’re on the right track.

This free MoneySmart app asks some simple questions, and then gives you a breakdown of what areas need attention and where you’re doing well by looking at:

financial goals
income and expenses
debts
saving and investing
insurance
superannuation and retirement
estate planning.

The great thing about the app is that it’s personalised, and at the end it gives you the top five actions you need to take to improve your finances.

TrackMySPEND

Also created by MoneySmart, TrackMySPEND allows you to input all of your expenses so you can find out where you need to cut back and save.

Examples of expenses you can put in include medical, grocery, work or travel, gifts and coffees, lunches or dinners. You can also nominate a spending limit per week, fortnight, month or year, and the app will track your progress against this limit.

The key feature of this app is the ability to mark expenses as ‘need’ or ‘want’. That way, when you revisit your expenses you can see what you can cut back on and where there are opportunities to save.

Pocketbook

Pocketbook categorises all of your spending so you can see where your money is going. Categories include groceries, travel, clothing and fuel, among others. You can also set your budget so you can stick to it.

The great thing about this app is that you can link it to your bank account so you don’t have to manually input every expense – the smart technology does it for you. Another handy feature is the alerts. Notifications appear when money comes out of your account so you won’t miss any transactions or accidentally forget to input them. Finally, there are the encouraging words when you’re close to reaching a goal.

Splitwise

Ever had a friend or family member who constantly forgets to pay you back? There goes that money – and with it, the ability to save. Splitwise is a great way to remember who paid for what and how much people owe each other, whether it’s dinner, rent or a movie ticket.

This app lists what you’ve spent and what the other person has spent, then it does the maths for you. It also gives you the ability to send IOU emails.

Expensify

We’ve all been there – tax time comes around and you simply can’t find all the receipts you need to claim tax back on. Expensify lets you scan your receipts when you get them and stores them in a nice bundle so you can access them at a swipe or tap of your finger.

The great thing about the app as well is that it actually extracts the data, including the merchant, date, time and amount, and puts it all in a downloadable file for you.

Your broker will be able to give you advice to help you save money throughout the loan process. On top of this, sticking to your budget so you can be more financially fit is not difficult – sometimes you just need a bit of technological help.

Saving Money by Alan Sarkissian

Jun 28

Home loan pre-approval explained

For those getting ready to stride into the world of home ownership, the uncertainties of pre-approval can cast a shadow of doubt over an otherwise exciting time. When is it necessary? How long does it last? And what does it involve, exactly?

Pre-approval is a lender’s assessment of your likelihood of being approved for an otherwise suitable loan. The appraisal is made on the basis of your ability to service a loan by looking into your living expenses and liabilities, your credit history, your employment circumstances and how often you have moved home or employment in the recent past.

As it is performed prior to a property being found and chosen, it does not take into account the particulars of a specific property and valuation, which is why uncertainties can arise.

Pre-approval is helpful for those who want to know how much they can borrow before attending open homes, and can be reassuring for new borrowers.

“When someone gets pre-approval they can start looking at properties knowing how much they can borrow. They know what their price range is,” explains the finance broker. “People take comfort in knowing that a lender has looked at their application to make sure it meets policy.”

Pre-approvals are usually valid for up to 90 days but, depending on the lender, may be renewed to allow more time to find a property.

It is very important to note that a pre-approval is not a guaranteed loan. It is your potential lender’s way of signalling how much they expect to lend you. This may change on your official application.

“Policies are changing day-to-day, week-to-week at the moment,” the broker says. “For anybody with a conditional approval, it’s a good idea to speak to their broker to find out if any policies have changed.”

Another thing that may cause a lender to decline your loan application after pre-approval is a change to your pre-approval circumstances.

“We need to make sure the applicant has not gone and got another credit card or car lease, or any other debt that may affect their income and serviceability,” the broker says.

Your pre-approval will also usually be conditional on a property valuation. If your lender does not deem the property a marketable asset, they may not approve a loan.

“We want to check that it is a readily saleable property. That’s the biggest thing. To make sure the actual security itself is acceptable,” says the broker.

Potential lenders need to be wary of the changes that can affect their ability to take out a loan, regardless of pre-approval figures, to ensure they don’t overcommit without a guaranteed source of funding.

Pre-approval is not a guarantee, but is a very useful tool for anyone looking for a property. Speak to an MFAA Accredited Finance Broker about pre-approval before you lock in your Saturday open home schedule.

Home Loans by Alan Sarkissian