Author: Frank Barragan

          What Are Genuine Savings? Genuine Savings For A Home Loan Deposit Explained Just when you thought that you could get the best home loan deal by simply having a lump sum of cash, you might have to think again. Not all cash deposits are acceptable in applying for a home or investment loan when your deposit is less than 20% of the purchase price. These days you can obtain a home loan with as little as a 5% deposit. That means a bank can lend you up to 95% of the purchase price. If you are considering applying for a home loan with a deposit that is less than 20% of the purchase price then here are some of the things that you need to know. At least 5% of your deposit needs to be made up of genuine savings. 1. What exactly are genuine savings? These are savings that are held or accumulated in a savings account for at least three months. 2. What other assets might be considered as genuine savings? ...
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    So you’re going to take the plunge into real estate ownership. Congratulations! You’ve just made a smart decision in securing your financial future. Let me help you with my top 10 tips for buying your first home. 1. Decide what you can afford Take a look at your salary, debt levels, cost of living and the repayments you’d face on your ideal property. Be honest with yourself about lifestyle costs so you don’t over-stretch yourself. 2. Get your finance pre-approved Do this before you start looking. Don’t risk missing out on a great property because you haven’t got your finance organised. Shop around too as the banks are offering some very competitive rates right now! 3. How to buy where you want for less Take a look at the neighbouring suburb. It might be a five-minute walk away but often so much cheaper. If you can’t afford your favourite area, consider what you like about it and seek the same in another region. 4. Top featu...
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                                                                                                                                                                                                                                                                                                                            It's simply dividing your home loan into two or more loans. For example, let's say you have a $200,000 home loan. You could divide your loan into one portion being $150,000 and the other $50,000. Why would you do that? It can protect you against rate fluctuations if you, as per in this example, say fix the $150,000 for three years and keep the other $50,000 portion variable with a 100% offset account. Simple strategies like this can give you security in the home loan market whilst at the same time keeping the flexibility of making extra repayments and redraw with the variable portion. There are a lot of differ...
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A mortgage broker is a person or business who specializes in finding the most suitable home loan for a customer, based on the customer’s individual needs and circumstances. Basically, like any broker the mortgage broker liaises between you as the property buyer and the banks or lenders who will lend you the money for your mortgage. So why go to a mortgage broker when you can contact the lenders directly? Open communication Unlike banks and other lenders, the mortgage broker isn’t looking to sell you a specific product whether it suits you or not – the broker wants to give you a full view of the market and find the right product for you. This opens up communication, as the broker needs to find out as much as possible about your requirements in order to select the most suitable loan package. And when you have questions or concerns, your broker will answer these directly. The broker’s communication skills work both ways – as they have an ong...
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  Of course you want to pay off your home loan as efficiently as possible to build equity in your home and avoid excess interest payments. Yet you don’t want to sacrifice your quality of life for the sake of making crippling mortgage payments each month. There are some simple strategies to help you pay off your home loan faster, without becoming too stressed about a tight budget. Place any lump sum payments into your mortgage account If you receive an annual bonus or a healthy tax return, place the extra money into your mortgage account. These lump sum payments can drastically reduce your loan term. Pay the same amount when interest rates drop Don’t let your bank reduce your regular mortgage payment when the interest rate drops – continue paying the same amount, and this will reduce the interest, eventually cutting down your loan term. Offset your loans with a savings account – pay wages into offset As your savings account earns interest, ...
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How Do I Pay Off My Mortgage Sooner? One way, is to pay more, more often. Want to pay off your mortgage early? Then make bigger mortgage repayments, more frequently. You’ll own your own home sooner and save a bundle on interest. E.g. paying an extra $10 per week on a $350,000 home loan (@7% average) saves nearly two years off your mortgage and $34,382.65 in interested expenses Act now – you pay most interest up front Most mortgages are structured so that you pay off most of the interest in the early years. If you are serious about wanting to reduce the interest you pay on your Home Loan, you’ll act now. Get rid of car loans and credit card debt You’re generally paying a higher interest rate on small loans (e.g. a car) and your credit cards so it makes sense to eliminate those debts first. So, put a rein on your credit card usage and then tackle your mortgage. Make sure you’re paying off the right mortgage When you entered the mortgage market, you ...
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Come tax time, many of my clients come to me without records of the expenses associated with their investment.   This is a rookie mistake.   To ensure you claim everything you are entitled to, it is essential to collect physical and digital receipts in one place. This will make it easier to send to your accountant and process at the end of the financial year.   The ATO requires you to declare the rent you earn from your investment property each year so declare everything!   If you want more information about what you should show the tax department, reach out and let's talk. My Very Best To You Always,  
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There has been a lot of talk about capital gains but did you know that you have to pay tax on your profits?   Capital Gains Tax (CGT) is calculated based on the difference between your sale place and what your investment cost you over the course of your ownership including any improvements and repairs.   To get an indication of what your CGT may be, reach out and let's talk. My Very Best To You Always,  
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If you’ve been making regular repayments and have finally paid off 20% of your mortgage, now is a great time to think about investing in real estate.   Why?   You might not need a deposit   When you own your own home (or have more than 20% equity in its value), you may not need to make an upfront deposit as your existing property essentially becomes security for the investment loan.   You can draw on your equity   Use the capital already existing in your home to borrow more so you can buy better value investments and charge a premium rent. Sound good?   If you’re thinking about jumping on the property investment bandwagon, I can help advise you on everything involved with the finances you’ll need. Reach out and let's talk. My Very Best To You Always,  
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Many property investors often struggle to figure out what sort of investment property to purchase. No matter where you buy, it’s reasonable to assume the value of the home will increase over time and it’s nice to know your money is sitting tight in bricks and mortar.   That doesn't mean every investment strategy is right for you.   The industry is full of jargon like “negative gearing”, “capital gains” and “cash flow” and that can really throw people off, especially if they’re just entering the market.   The most important question you need to ask yourself is ‘why’ you are purchasing the property.   Is it because you need a tenant to cover your mortgage repayments or is it because your accountant has told you it’s a great way to receive tax breaks?   Whatever the reason, you should put some thought into your investment strategy and how much time and money you are willing to commit.   I’m here to help you figur...
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