Rate Cuts & Budget - What do they mean for you?

We've come across a great clip on SMH explaining the implications of May's interest rate cut and the latest budget - and how they are likely to effect you and the property market... and we're happy that it's good news!

Watch the clip to find out more

We've also got a great little tool on our website to help you calculate the difference that you could make to your mortgage by making extra repayments.  Check it out here.

If you need help with your financing, please call me on 9564 0700 or email.

A great time to invest

Low interest rates, below par property prices and a glut of available stock are promising signs for savvy property investors.


Already this year the property market has seen an increase in investor activity as many hone in on the opportunities available. The latest ABS housing finance figures show that the value of investment housing loans rose by 4.4% in February 2012 to $6.9 billion, seasonally adjusted. This is a 6.6% increase on the same month last year and is noticeably above the yearly average of $6.6 billion.   


Investors who have their finances in order, and who have conducted thorough research, may find windows of opportunity in today’s property market. 


The latest figures from RP Data show that in January there were over 287,000 residential properties for sale in Australia, which is approximately 30% higher than the same time last year. The glut of available properties in some states could provide investors with prime pickings, particularly if prices have also fallen in the region. According to the same research, property values fell over the three months to December 2011 in all capital cities except Sydney and Hobart, which moderately rose by 0.7% and 1% respectively. 


Other encouraging signs for investors include relatively low interest rates, and in some areas, rental price growth and low rental vacancy rates. The latter is influenced by Australia’s housing undersupply issue. The latest ABS building approval figures show a fall in February, the fifteenth consecutive monthly drop. With fewer new properties being built, vacancy rates should remain tight and we are bound to see further pick up in rental price growth. Already, RP Data’s latest research shows capital city rents over the past 12 months have increased by 7.1% for houses and 4.2% for units. 


Rental yields are also showing positive signs of improvement. Gross rental yields over the 12 months to December 2011 have improved, with yields for houses rising to 4.4% from 4.0% and units increasing to 5.1% from 4.7%.  


When choosing what type of property and where to buy, it is a good strategy to invest in a dwelling that is well located, highly regarded by renters and priced appropriately. Ideally, the property will be in close proximity to amenities, shops, public transport and have appealing features, such as off-street parking. 


Of course, there are tax and legal ramifications associated with property investment, and it is always a good idea to get professional advice from an accountant or solicitor before settling on a strategy.


Prospective investors should be aware that lenders generally limit their loan to value ratios - LVRs - to 90% of the purchase price. However, some lenders may consider a higher LVR, depending on the individual borrower so it pays to shop around. Keep in mind, when the LVR is 85% or above, a genuine savings deposit of 10% is required, which can be savings held over a period of at least three months, equity in an existing property, etc. Borrowers should investigate the finance side of any purchase early on to ensure they satisfy their chosen lender’s requirements.” 


Mortgage Choice provides the following five tips for potential property investors: 


1. Research your property options – Conduct thorough research before settling a property investment strategy. If you are not confident in your ability to find a suitable investment property, seek assistance from a buyers’ agent. Before committing to any property purchase, it is a good idea to discuss your plans with an accountant and/or financial planner. 


2. Pre-approve your property loan – Talk to a professional mortgage broker about getting a home loan pre-approval. This gives you an understanding of what you can comfortably repay and afford to buy. It allows you to shop with greater confidence, whether you are bidding at auction or negotiating a purchase.  


3. Look into LMI – If you decide to access the equity in your existing property to purchase another and you borrow more than 80% of the property’s value, you will probably need to pay lenders’ mortgage insurance (LMI). This can be quite costly, ranging from hundreds of dollars to tens of thousands. A professional mortgage broker can provide up-to-the-minute information.  


4. Choose a suitable loan structure – There are a number of factors to consider when deciding on the type of loan structure to suit your investment strategy. This could include how to tie in any existing loans, what loan features will help you achieve your financial goals (eg. offset account, redraw facility), which loan suit your needs (ie. interest only loan or principal and interest, fixing part or all of your loan, etc).  


5. Build a financial buffer – Be prepared for the longer-term peaks and troughs of the property cycle by building a financial buffer of at least 1-2% to cope with additional expenses including lenders’ interest rate rises, property maintenance and repairs, and/or the loss of a tenant or rent arrears. Remember that regular income from any investment is not a certainty and capital gains don’t appear overnight.


If you'd like to talk to us about any financing requirements that you have, or would like a referral to property investment specialists, please give me a call.  There are some great opportunities to be taken at the moment!  02 9564 0700 or email phillip.stabile@mortgagechoice.com.au.


Check out our website for more tools and tips www.mortgagechoice.com.au/phillip.stabile

Make the most of your investment dollars

Great tips from SMH if you're thinking about investing in property...


Knowing your limits and the market will help to expand your property portfolio.


Why do some people struggle to buy one investment property and yet others manage to own five or six? The answer isn't simply that they have more money.


Investors who are creative in their approach to financing and who thoroughly research the important real estate indicators routinely achieve their goals faster and with less hassle.  Read more

Please let me know if we can help you with your finance 9564 0700 or email phillip.stabile@mortgagechoice.com.au.  Our website has lots of great tools and tips too. 

It's a great time to buy!

According to recent auction results in Sydney, now is a great time to buy.

With more than a month since the auction season began, the results are looking good for buyers.  There are lots of properties on the market and a strong clearance rate - but still room for improvement and negotiation ... read more about these indicators and what they mean.

Whether you're a first home buyer, upgrader or investor, ramp up your house hunting this weekend and schedule a few open houses.

If we can help, please let me know 02 9564 0700 or email phillip.stabile@mortgagechoice.com.au, or check out our website for lots of great tools and tips. www.mortgagechoice.com.au/phillip.stabile

Focus on features not rates

It's really easy to get caught up in the rate that your lender is charging you.  Is it competitive?  Do they move when the RBA moves?  Do they just seem to do whatever they want whenever they want?

It's hard not to get caught up in that.  It's your money!

But what is also important are the features of your home loan.  A cheaper rate may not offer you the flexibility you need.  They may also charge higher fees.  It just might not be the best matched loan to your circumstances. 

Read more about what to look for, and if you have any questions or concerns over your current home loan, please call or email.  9564 0700 or phillip.stabile@mortgagechoice.com.au

Also, check out our website for lots of great tools and tips.  www.mortgagechoice.com.au/phillip.stabile

Are you making the right rate reaction?

Refinancing has saved customers on average $10,000 each according to the latest figures from Mortgage Choice.  Lenders’ recent interest rate movements can be bewildering, which makes now an opportune time to enlist our help!

We can do a health check on you current mortgage and make sure that it's meeting your needs, at a competitive rate.

Just give me a call and we'll arrange a time to meet. 9564 0700 or email phillip.stabile@mortgagechoice.com.au.

Or check out our website for some great tools and tips.

Now is a good time to buy!

We're always looking for the best time to buy a property - and right now is looking great.  The experts are predicting another interest rate cut in the next few months, Sydney prices are defying the nation's trend and are holding steady and even increasing, the banks are competitive - the outlook is rosy!

Here's a couple of stories from SMH that make interesting reading:

• Interest rates
• Property values

If we can help you arrange finance or if you want to know how much you could borrow, please give me a call 02 9564 0700 and check out our website for great tips and tools www.mortgagechoice.com.au/phillip.stabile.

New Years Resolutions

So it's that time of year again where we often think about what we want to achieve, what we want to do differently, what we want more of, and what we want less of.

If your plans for the 2012 involve purchasing a new home, buying your first home, buying an investment property, making sure that your mortgage is the most suitable to your current circumstances, please give me a call!

We can help to arrange finance, do a home loan health check or point you in the direction of other professionals in the field. Check out our website for lots of good tools and info.

Happy New Year, and we look forward to hearing from you if there's anything we can do to help you achieve your goals for 2012.

Take care
Phillip

It's beginning to feel a lot like Christmas...

It's that silly season time of year again, and I would like to wish you and your family all the best for the holidays.  I hope that Christmas brings you joy (as well as the odd gift or two, plus a yummy meal and a few drinks), and that the New Year brings good health, happiness and success (and anything else you wish for).

If buying a new property is in the plan, we'll do all we can to ensure that the finance is arranged as easily as possible.  

Please give me a call in the New Year so that we can sit down and review your needs and options.  9564 0700 or email phillip.stabile@mortgagechoice.com.au

Take care and enjoy the holidays, and check out our website for lots of handy tools and tips.

All the best.

Phillip

First Home Buyers - It's not too late!

If you're in the market for your first home, you will know that from 31st December 2011 stamp duty exemptions on existing properties will end.   Exchanging contracts before then will save you thousands!

But don't despair, there's still time with auctions being held right up until the Wednesday before Christmas.  Read more about market activity for First Home Buyers, and start planning your open houses for this weekend. 

You will need to make sure you have pre-approval and all your finances in order, so if I can help, please call on 9564 0700 or email .

There's lots of handy tips and tools on our website too.

Happy shopping!

Get into the swing of spring!

The weather might be miserable outside, but the real estate market is warming up!

With interest rates down, property prices stabilising and changes to benefits received by first home buyers, there is lots of activity in the market.  There are some good properties for sale, so don't delay!  Start looking and if you get in soon, you could even be in before Christmas.

Read more from SMH "Spring Surge Blooms as Home Buyers Dive In".

If we can help secure your finance, please call on 9564 0700 or email.

There are lots of great tips and tools on our website too.

Great news from Housing Outlook 2011-2014

Whether you're looking to get into the housing market for the first time or thinking about investing in property, now is a great time to move.  The QBE lmi Housing Outlook is forecasting very good price growth of up to 20% in Sydney.


"Stable interest rates and improving economic conditions will drive rising house prices in the next three years, with Perth and Sydney leading the way, a major mortgage insurer says.

QBE Lenders' Mortgage Insurance (QBE LMI), which supports lenders, has forecast price growth of up to 20 per cent in Sydney and Perth as business and consumer confidence improves."  Read more

If we can help you with finances or any advice, please call on 9564 0700 or check out our website for lots of handy tools and tips. 

RBA leaves rates on hold

The Reserve Bank's decision to leave interest rates on hold will be a relief to property buyers and for those with an existing mortgage provides an opportunity to ensure that your current loan is still competitive across the market and meeting your individual needs.

If we can help you secure a mortgage or you want to check that you're getting a good deal, please call or email me.

Phone: 02 9564 0700

Email: mailto:phillip.stabile@mortgagechoice.com.au

Please check out our website at www.mortgagechoice.com.au/phillip.stabile