Author: Frank Barragan

    Attention property investors: if your home loan is more than a couple of years old, there’s a good chance your interest rate is too high. According to the most recent Reserve Bank of Australia data, for July, investors with outstanding loans (i.e. existing customers) were charged significantly higher interest rates than investors with new loans (i.e. new buyers or refinancers). On average, investors with outstanding loans were charged an extra: 0.39 percentage points for principal-and-interest loans 0.53 percentage points for interest-only loans And those are just the averages. Some investors with new loans were able to make even larger savings.   Why do new customers pay lower rates than existing customers?   If you’ve got a mortgage, you might be wondering why your lender is making you, a loyal customer, pay higher interest rates than new customers.   There are thr...
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      Want to make repayments more frequently. Refinance. I’m often asked if there are other options for repaying your mortgage rather than the traditional monthly repayment schedule.   There are some lenders who offer a weekly or fortnightly option and this can be great for those of us with a similar pay-cycle.   The added bonus of making more regular payments is that you can potentially save thousands of dollars on interest over the life of your loan!   If this sounds like something you are interested in, I can help you find a lender that offers this service and walk you through the steps of refinancing.   If you have any questions feel free reach out. My Very Best To You Always,  
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    How Does Buying a House and Land Package Work? Whilst buying off the plan is a popular choice for those who are happy to take a back seat and let developers design their home, some people prefer to have a little more control. If this sounds like you, and you are in a position to pay for land upfront, then choosing a house and land package might be the perfect solution. You’ll have a say in how your property is constructed and what the final product looks like. Here’s what to expect if you choose to purchase a house and land package: You’ll have to pay for the land upfront You’ll pay stamp duty on the land but you won’t have to pay it on the finished house When you purchase the land, you’ll sign a contract with a builder to undertake the full construction of your property You’ll potentially save lots of money, as you can pay your builder in instalments You can manage the building of your p...
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Things You Need to Know About Buying Off The Plan Are you thinking about purchasing a property off the plan?   It’s probably more complicated than you think and there are definitely a few things you need to think about before you put a deposit on the table.   For example: Your building company has the authority to dictate its construction and features, meaning you have limited say in how the property looks. Rather than paying for the construction in instalments, the contract price is for the final product. When you settle on a purchase price, you’ll have to pay stamp duty on the full contract price as well. You could be eligible for huge savings from a government grant which I can scope out for you. I’d love to talk you through the steps involved in purchasing a property off the plan.   Let's talk! My Very Best To You Always,  
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What are the costs involved in buying a property? Don’t be fooled into thinking the price you offer or bid at auction will be the only cost involved in purchasing a home.   These include: Building inspections Loan application or establishment fee Mortgage insurance Mortgage registration & transfer fees Conveyancing & legal fees Stamp duty If you want an indication on what these fees are and how much to allow for in your budget, let's talk. My Very Best To You Always,  
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What are non-genuine savings? For some people, saving for a home loan deposit is long and arduous.   Years of sacrifice and two-minute noodles are followed by an approximate three month wait, whilst you prove to your lender that you are capable of budgeting and making mortgage repayments.   This is known as GENUINE savings and is how many people start their property journey.   But this isn’t always how life works. You may have different circumstances in which you’ve come into money quickly. This can be from an inheritance, a gift, sales of assets or most commonly, a little help from mum and dad.   These are known as NON-GENUINE SAVINGS and are perfectly acceptable.   All you have to do is let your broker know your situation and make sure you choose ‘non-genuine savings’ when you’re comparing different home loans.   If you’d like to talk through the difference between genuine and non-genuine savings give...
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Do you have an existing loan and you’re not sure if it’s the right fit for you anymore?   You don’t have to stick with your current lenders just because they were your go-to-guys a few years ago. I can help you find a much better deal to suit your current circumstances.   The first thing you should do is organise a valuation of your home to get a clear understanding of what your property is worth in the current market. This estimate will be used to calculate your LVR which will affect the amount of additional money you can borrow from the bank.   Different lenders will assess the value of your home differently. To get a true indication of your property’s value or to find out how much equity you have on your current home loan, let's talk. My Very Best To You Always,  
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  There are quite a few advantages to purchasing a new property as an investment. The Pros: No repairs or renovations needed Appealing to tenants so you can charge higher rent You can claim depreciation, particularly in the first few years of ownership If you live in the property for a little while, some states offer generous government concessions for new-home buyers. The Cons: Purchasing off the plan has its risks – you don’t know exactly what you’ll end up with. Can be more expensive than older properties No rent history, so it’s difficult to estimate rental income Sometimes located in new fringe suburbs, adding to potential commuting times.   I’ve got access to the latest facts and figures to help with your research. If you’d like to chat about your options, call me. My Very Best To You Always,  
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        Saving for a house deposit can be a daunting task and if you’re paying rent whilst you save, it can feel impossible. Worst of all, while you scrimp every dollar, house prices may be skyrocketing and you know you are missing out on potential capital growth. But if you have a family member with equity in property, I might have a solution that can get you on the market sooner AND save you thousands of dollars. It’s called a ‘guarantor loan’ and it allows you to borrow your deposit and purchase costs against the value of a family member’s property. How it usually works: You borrow 100% of the purchase price, including purchase costs 80% is secured by your new property 20% plus purchase costs is secured by your guarantor’s property   The best part is that because the amount you’ve borrowed is less than the combined value of the two homes, you don’t have to pay...
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