Saving for things like holidays or renovations can be difficult while you’re paying off a mortgage, but it doesn’t have to be. Home equity loans are designed to give you access to the equity in your existing home loan via a line of credit loan.

Mortgage refinancing is a common way of tapping into the equity you’ve built up in your existing property. The equity in your home is the difference between the property value and what you owe on your mortgage.

The amount you can borrow depends on how much equity you’ve built up in your property, and some other criteria. Generally, you’re limited to borrowing up to 90% of the value of the property.
You can use the funds from your line of credit loan to buy an investment property, renovate your existing home or to take a break.

How do home equity loans work?

Home Equity loans are most commonly offered as a line of credit loan, which allows you to withdraw funds up to a set limit at any time. You may be able to draw down the initial equity loan either as a lump sum or in stages. Generally a line of credit loan is an interest-only loan, and in some cases you may be able to capitalise the interest payments.

Owning your property is a feeling unlike owning anything else.

For many Australians, the decision to purchase a property or continue to rent a property may not be an easy decision and it’s not uncommon to feel hesitation. If you’re considering purchasing a property we’ve outlined some of the things you should consider to make sure it’s right for you.

The advantages of buying over renting:
The advantages of renting over buying:
Things to consider if you’re thinking about purchasing property
Why it’s worthwhile to speak to a mortgage broker

A mortgage broker is a great resource to speak to, even if you’ve just started thinking about purchasing a property. A mortgage broker can give you an accurate picture of not just how much you can afford to spend on a property but what your finances will look like after you buy. A mortgage broker will outline all the steps, costs and people involved in the buying process and make sure you have the confidence to make the right decision. If the time comes and you’re ready to start shopping around, a mortgage broker will organise a pre-approval for you and make sure you have the most competitive loan product that matches your personal circumstances and property goals.

With all the hype and lead up to the Christmas season, you’d think we all had an unlimited budget to party through the festive season and purchase everyone on our contact list a Christmas gift. While that’s a nice idea, it’s not so realistic.

Here are a few tips to help you with your budget during this festive season: 

The holiday season is a time for family, not financial pressure. It’s about fun not funds: carving out time to put the people in our lives first. Budgeting allows us to keep the true spirit of the season at the centre of the festivities. 

After Christmas, and over the New Year, you may find yourself thinking about your big plans for 2022. I’m available in January to start working on your financial goals for the year ahead.

Happy New Year! Here’s to a prosperous 2022!

Well, it goes without saying that 2021 was a year for the history books. While we tried to navigate ever-changing rules and restrictions. Now, we look forward to 2022 and all it has to offer. 

With that in mind, now’s a great time to sit down and ask yourself: what am I aiming for in 2022?

Let’s face it, while we’re all for health-inspired New Year’s resolutions (well, kinda), it doesn’t hurt to have a financial resolution too. Usually, the two work hand-in-hand quite well.

For example, the less you spend on booze, take-away coffees or Uber Eats, the more you can put towards savings to your 2022 financial goals. So, while we still have the New Year sparkle have a little think about what you might want to achieve in 2022.

Whatever it is, rest assured that we’ll be here to help you achieve it. Happy New Year and all the best for the year ahead!

 

The COVID shutdowns and slowdowns we’ve experienced over the last two years have showcased the resilience of Service Stations.  Underpinned by long leases, servos have proven to be an enviable asset for commercial investors seeking consistent reliable returns.

With public transport abandoned and incessant border restrictions, Covid times have seen a ramp-up in local travel and an increase in domestic road travel, driving a surge in demand for fuel and convenient retail and fast food and beverage services.

Service station sales have risen 39 percent over the last three years, from $354 million in 2017 to $493 million in 2020.  There are now more than 6,000 service stations across Australia and around 789 motor vehicles per 1,000 people, the sixth-highest level globally. 

And this appetite for servos is not looking like dissipating any time soon. Despite improvements in public transport infrastructure, ride-share technologies and the beginnings of a transition to electric vehicles, Australians are still heavily reliant on cars. 

With an entry-level buy-in of about $4 million, this asset class delivers a solid investment case based on historically long-term leases, consistency in performance and the added opportunity for development potential based on often high-profile or sought-after locations.

Yields have tightened on the back of increased investor demand in recent years,  and now average sub 5.5 per cent with further tightening expected as demand for this type of asset intensifies and shifts to business cases with quality tenants and upside potential.  

This provides a strong opportunity for income-focused investors, particularly when compared to the residential market.

Service stations – What to focus on when investing?

Yields have tightened on the back of increased investor demand in recent years. As yields continue to compress it is increasingly important to focus on business cases with quality tenants and upside potential when investing in a service station. 

The success of your service station investment hinges on:

  1. ensuring you approach a lender with an appetite for the business 
  2. the correct presentation of your business case and loan submission, and
  3. the structure of your finance to evolve with your business.

Each bank will assess the availability of funding differently and that’s where we can help. We work with business owners and investors to secure funding for development, acquisition, and refurbishment. 

Let me say this loudly, loyalty doesn’t necessarily pay anymore. Not with lenders (banks) anyway. They’re busy acquiring new clients, delivering dividends to shareholders… and they know that we Aussies like to stick with the brands we know. 

Banks can be guilty of taking their current clients for granted. You may have a long term savings account with a bank but that doesn’t guarantee you a great home loan. 

Loyalty is a characteristic we value but when it comes to home loans it could end up costing you more in repayments than is necessary. That’s when you’ve got to question the value of asking your bank, directly, for a loan. 

Often customers who have been with the same bank for a while can be easily swayed by the offers put right in front of them, tempted to go with the first one they see. After all, with the busy lives we all lead, it’s easy to just head to the bank and pick the first product the bank suggests, isn’t it?

These days, if you’re looking to find the right deal, with suitable inclusions and terms, and would like to save as much money as you can, this is where a mortgage broker – like me – can be worth their weight in gold to you. Look, you might even end up with your current bank, in the process, but boy will we make them work hard for you.  

10 reasons you’ll love a broker more than you love your bank…

  1. On January 1st 2020, Best Interests Duty (BID) will apply to brokers, not banks. This means you’ll have a professional who is legally obligated to work and act in your best interests – and no one else’s. 
  2. You get someone who works for you. Bankers work for their shareholders. 
  3. You’ll benefit from a comparison of over 60 banks and lenders who offer thousands of loans and products. ^
  4. You’ll have someone with you for the long haul, regularly checking in on your loan to ensure it aligns with your goals. 
  5. You’ll have someone fighting for the fittest rate on the market for you so that your loan matches your needs and goals, not the first product on the shelf. 
  6. You can contact me at any time, not just during the restricted working hours of a bank. 
  7. You’ll have a professional advising on rates, repayments, incentives and contracts.
  8. From the first Fact Find to the final repayment, your broker is with you all the way. 
  9. You won’t be left alone to negotiate with bankers, agents, conveyancers, accountants…
  10. Oh, and did I mention that having a broker comes at no cost to you?*

I’ll search high and low, across thousands of products, all the best known and emerging banks and lenders to find your loan. I’m a part of a family owned company, I genuinely want what’s right for you. 

Why look at an investment property before buying your own home?

Investing in property before buying your first property to live in can be a great way to build a solid financial foundation for the future. You can get all the benefits of home ownership while enjoying the flexibility of continuing to rent where you can afford. 

The trick with investment property is that once you’ve saved your pennies and secured a home loan, you can get tenants to pay your mortgage off. That means, while paying rent, you’re also building equity in a property as your tenants contribute to your mortgage..

If I already own my home, why should I consider investing in an additional property?

If you already have an owner-occupied property, the equity that may be present in your family home will give you a leg up above the first-time-buyer investor. By tapping into the equity in your home you can borrow more than 80% of the value of another property without being subject to LMI (lenders mortgage insurance), because the new loan is secured against your existing equity.

What are the financial benefits of investing in property?

Capital growth

Capital growth is the continued growth in the value of your property over time. This strategy generally requires you to hold onto the asset over a longer period of time. For example, if you purchased a property in 2018 for $300,000 and it grew in value by 5% each year it would be worth $383,000 in 2023. In that time, you would have made a $83,000 capital gain minus your expenses and taxes.

Rental and investment yield

Rental yield is the money you earn from your rental income minus the expense you incur owning the property. In popular areas, rental rates can provide property investors with an income stream each month. Investment yield is the yearly amount of rental income you earn divided by the total loan deposit you made. If you earned $10,000 in rental income and deposited $100,000 on your loan your investment yield would be 10%.

Tax benefits

There are tax advantages for all types of property investors; you can claim expenses you incur owning the property, deductions for depreciation and there’s a practice called negative gearing we will explain later.

Lauren owns a one-bedroom investment property in a regional area of Queensland. She collects $1,300 a month in rent and her loan repayments are $1,500 a month and she incurs $300 a month in other costs. Each month she has to cover the $500 shortfall in cash flow from the investment. At the end of the year, Lauren has lost a total of $6,000 from her investment and claims the total on her tax return alongside her $100,000 a year salary. This reduces her taxable income to $94,000.

There comes a time in the life of every family when the question is asked – should we renovate or upsize? The home you had when your first child was born may not be big enough to comfortably live with a bigger family. Naturally, the hard task of deciding what to do pops up. Here are a few things to consider: 

Buying a new home

Renovating

Lenders Mortgage Insurance is an insurance that protects the lender in case of a default on the property – it offers no protection to the home owners in the event they cannot make their repayments. For many borrowers it’s an unavoidable cost but you can take steps to limit how much it costs you and how you pay it.

How Much Does LMI Cost?

LMI is determined by two main factors: your Loan-to-Value (LVR) ratio and your total loan amount. However LMI costs vary between lenders, even if these factors are the same.

You have two general options for paying LMI – either as a lump sum payment when your loan settles or the cost can be added on to your total loan amount. Although LMI is a one-time cost, you may have to pay it again if you move properties.

Tips to Avoid Paying LMI

Confused? A mortgage broker can help.

One of the most confusing aspects of LMI is that lenders each have different criteria and methods of charging the additional cost – some lenders have more competitive LMI costs than others. We know the LMI costs inside and out and can give you clarity on the LMI policies of specific lenders and banks.

We can assess your financial situation and property goals and give you an overview on the LMI charges you could incur. We can outline strategies that would see you purchase a property sooner, having to pay LMI or to wait until you have a larger deposit and avoid the cost.

Refinancing your home loan doesn’t have to be complicated. Here are our four steps to getting your loan refinanced:

1. Home loan comparison.

We’ll scour the market and compare home loan rates, interest, fees and features to determine if refinancing is right for you.

2. Let’s see where you’re at.

We’ll check in on your mortgage balance, interest rate, the amount of time and money remaining on your current home loan, mortgage documents, exit fees and any other additional costs. This will help you make a smarter decision when you’re shopping around.

3. Research.

Have a think about the type of loan you want, including features, fixed or variable, and options like linked offset accounts. We’ll then compare over 60 banks and lenders, and thousands of loan options to see what’s right for your current situation.

4. Application time.

Once we’ve found the right home loan for you, it’s time to get all the paperwork together and kick off the application process (woohoo!).

If you’re ready to refinance or would like to have a chat, let’s talk! We’ll help you understand your options and see what your next steps could be to save more sooner.