Frank Barragan - Page 13 of 22

Author: Frank Barragan

Conversations with a Pug – Sell or buy first? Which option is right for you?

Posted on by Frank Barragan
Sell-or-buy-first-Which-option-is-right-for-you
      Sell or buy first? Which option is right for you? It’s the ultimate dilemma for any home owner planning to move on to a new property – do I sell or buy first? You don’t want to sell unless you have somewhere else to live, but you don’t want to buy unless you have the money from the original home. Whichever way you go, there will be some stress involved, so it’s important to look at the pros and cons of each option to decide which is the most suitable and practical for your circumstances. Questions to consider Your decision should be based on your current equity situation and how fast you can sell your current home. In a “hot” market, a “hot” property is sure to sell fast – but don’t assume that your property will attract an immediate buyer. Do your research so you have a realistic idea of the potential selling time. The other factor to consider is how long it will take you to find your next home. You d...
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Conversations with a Pug – Top Six Reasons why your home loan might be declined

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Top-Six-Reasons-why-your-home-loan-might-be-declined
      Top Six Reasons why your home loan might be declined You’re ready to buy a home, but you can’t find a lender who will approve your home loan. While this might seem discouraging and frustrating, it is not necessarily the end of your dream to become a home owner. Once you know the reason that you are considered a bad risk, you can improve your eligibility. Usually, it just takes a little more time and to improve your eligibility. Here are the top six reasons lenders might decline your loan application: 1. Low deposit If you can only place a small down payment on the property of your dreams, the lender might conclude that you are not financially prepared to take on the long term responsibility of a home loan. The lower the deposit, the more you need to borrow, creating a higher risk for the lender. A larger deposit not only lowers your repayments, it also demonstrates your long-term financial commitment....
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Conversations with a Pug – How to narrow down what you want in a home

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How-to-narrow-down-what-you-want-in-a-home
      How to narrow down what you want in a home Before you can find the perfect home, you need to know exactly what you are looking for – and as you may come across desirable homes that include only a few of the features on your list, you need to know which features are the most important to you. As a further complication, you will generally be working on this list with your spouse or partner, who may have different priorities to you! So how do you work out what you are looking for in a home? Identify the “needs” and the “wants” Write your list of desirable features while your partner does the same. Hopefully, your lists will tally fairly closely! Now divide the list into two separate columns – “needs” and “wants.” The “needs” list could include anything from “must be walking distance to school” to “must be accessible for wheelchair.” The minimum number of bedrooms may be non-negotiable, although you may ...
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Conversations with a Pug – How to choose the right property for you

Posted on by Frank Barragan
How to choose the right property for you Your home is perhaps the biggest investment of your life – particularly as it is not just a financial investment, you are also investing in your future lifestyle. Yet many people have a tendency to “fall in love” with a particular property, and they forget to remain logical in their thinking. As a result, they find themselves owning a property that does not suit their current lifestyle or their future financial plans. So how do you choose the right property for you? Find a property that fits your real-life needs, not your dream lifestyle You might have fantasies of living by the beach or in a small inner-city unit within walking distance of all the pubs and cafes, but how will this choice fit your budget and your long-term lifestyle? Your first home should fall within your budget and it should be compatible with your work and family life. There is no point purchasing a dream property that require...
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Conversations with a Pug – Comparing commercial and residential property investment

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Comparing-commercial-and-residential-property
      Comparing commercial and residential property investment If you are looking for a sound real estate investment, look beyond the typical two bedroom apartment and consider expanding your portfolio with a commercial property. There are three types of commercial property – office, retail and industrial. There are some significant differences between investing in commercial and residential real estate, each with a potential positive or negative impact on your investment. Investment returns Commercial property is also much more expensive to buy than residential property, and the risk is also considered higher because if its vulnerability to market conditions. Banks will require a larger minimum deposit, usually around 30%, and the interest rates will be higher than a residential property. While the average rental return for residential properties in Australian capital cities is 3.6%, a commercial gross ren...
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Conversations with a Pug – How to calculate your borrowing power

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How-to-calculate-your-borrowing-power
      How to calculate your borrowing power One of the most important factors in your home ownership journey is the amount of money you can – or should borrow. You want to borrow enough that you can purchase the right property for your needs, yet you don’t want to end up out of your depth in debt. Most lenders rely on their own variation of a basic formula to calculate your borrowing power. They look at six elements of your financial situation – gross income, tax, existing commitments, new commitments, living expenses and buffer – to calculate your monthly surplus. This formula gives a good overview of your level of financial security, and tells lenders how much you are able to pay back each month. If you assess yourself based on a similar formula, you can have a realistic idea of how much you can borrow and whether you need to save and prepare a little more first. So how do all these elements combine to asses...
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Conversations with a Pug – 5 Ways To Tell If You Found The Right House

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5-Ways-To-Tell-If-You-Found-The-Right-House
5 Ways To Tell If You Found The Right House You’ve seen a lot of homes lately. You have been out every weekend searching for the right home for you. At this point, you might not be sure it’s even out there, or if it is, you might not find it. Then you drive up to a home that gives you hope. At this point, however, how can you tell if it is the right house for you? Here are 5 sure signs that you’ve found the right house: 1. You feel excited. Just as your first love might have given you knots in your stomach, the right home could as well. You start to imagine a life in the home and it’s exciting. 2. You overlook the flaws. You are realistically seeing the negative aspects of the home and are willing to overlook them. Maybe you wanted a view and this home doesn’t have one. But the beautiful kitchen remodel and spacious landscaped yard make up for that. 3. It doesn’t have your deal breakers. You should never compromise on the real deal b...
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Conversations with a Pug – The hazards of applying to multiple lenders

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The-hazards-of-applying-to-multiple-lenders
      The hazards of applying to multiple lenders It’s natural that when you are researching something as important as a home loan, you should do as much research and comparison shopping as possible. However, if you apply for a mortgage through several lenders at once, your vigilance could backfire. How multiple applications impact your credit score Multiple applications increases the risk of being declined, and every time your credit application is declined, your credit score is impacted. The credit score is the rating of your creditworthiness, and is calculated based on the information in your credit file, which is your history of dealings with credit providers over the past five years. So having numerous loan applications within a short timeframe can have a domino effect, increasing the likelihood of the next lender declining your loan based on a quick review of your credit score. This rejection is not...
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Conversations with a Pug – Upgrading Your Home Before Selling?

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Upgrading-Your-Home-Before-Selling
      Upgrading Your Home Before Selling? Most people have walked through beautiful model homes and wished their own home had all those modern features. Model homes showcase the latest in upgrades and decorating styles. When we get home all we can see is the tile in our bathrooms and yesterday’s details in our kitchens. These things can become overwhelming if we are considering a home sale in the near future. “Can I even sell my house with granite countertops anymore?” Before you grab the sledge hammer and plan a DIY weekend of expanding your family room, take a breath. Your home doesn’t need to be the latest and greatest to fetch top dollar in the resale market. As you evaluate making changes to your home prior to listing it for sale, the first thing you should do is talk with your real estate agent. They have market experience which allows them to speak with you about how your home compares to others ...
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Conversations with a Pug – What’s the best time to purchase a second property?

Posted on by Frank Barragan
Whats-the-best-time-to-purchase-a-second-property
      What’s the best time to purchase a second property? You are established in your home and ready to dabble in some investments, yet you are a little daunted by the responsibility of owning two properties. How do you know when conditions are right for you to purchase a second property? If you are like most one-property owners, you might visualize a few obstacles preventing you from purchasing a second property. So let’s look at some of these obstacles and see if there is a way around them. Don’t let market conditions dictate your decision Many buyers find themselves in limbo waiting until interest rates and housing prices are “just right.” While this is a positive opportunity to continue saving and build equity in your existing property, it can also be counter-productive if the ideal conditions never eventuate. Property investment is about long term capital growth, and you can only start that growth ...
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