Author: Frank Barragan

Houses versus apartments – which is the best invest When it comes to property investment, lots of investors opt for apartments, because they’re often cheaper and cost less to maintain.   Saying that, investing in a house has its perks: You can make home improvement without approval from an owners’ corporation There is greater potential for capital gains and growth Higher rental returns because some tenants prefer houses with gardens, large living rooms and multiple car spaces Renovations offer more scope for improving the value of your investment It also has its pitfalls: Houses cost more than apartments Because they are more expensive, your rental income might not cover mortgage repayments and expenses. For a quick chat about whether investing in a home or apartment is right for you, call me. My Very Best To You Always,  
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Why Should I Refinance? Over the years I have helped hundreds of people manage their finances and find the right home loan.   It’s common knowledge that after a few years, your original loan won’t be as competitive as it once was so it’s worth scoping the market to see what else is on offer.   This process is known refinancing and is the act of replacing an existing home loan with a new one.   People typically refinance for one of four reasons: To get a better interest rate and lower their weekly repayments To access their equity for future investments To renovate To consolidate debts While changing your home loan may lead to lower interest rates and more flexible features, it can also come with additional costs so it’s essential to calculate both the savings and the expenses involved.   To find a home loan that suits your current financial situation, let's talk. My Very Best...
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Why You Should Go to a Broker, Instead of Your Bank Think about the last time you went grocery shopping.   I bet you spent at least a few minutes comparing brands and deliberating on which products offered the best value for money.   If we expect that level of choice in our supermarkets, why wouldn’t we expect the same from our home loans?   A broker’s job is to do the comparing for you. Not only are they experts but they have access to a huge database of lenders who are all wanting your business. A broker is in the position to negotiate with those lenders and find you the right value-for-money loan to fit your lifestyle.   A mortgage broker: Has access to more lenders, meaning you’re more likely to hear a ‘yes!’ Is specifically trained in mortgages and knows how to structure your loan to suit your goals Acts as your own personal banker, guiding you through every step of the home loan process ...
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A Little Known Fact About Variable Rates Did you know that there are two types of variable rates?   They’re known as standard rates and basic rates and choosing the right one could save you thousands of dollars a year on your mortgage.   Standard rates have lots of features, meaning you can pay off your home loan faster but they often have higher interest rates.   Basic rates have very few features which may restrict how quickly you can pay off your loan but they tend to have lower interest rates   There are pros and cons to both of these options and the right one for you is completely dependant on your personal situation.   To find out which one is right for you, let's talk. My Very Best To You Always,  
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  What is a property valuation and why is it important Buying a home is one of the biggest financial decisions of your lifetime and with so much at stake, it’s in your best interest to know every little detail about what you’re entering into.   A property valuation is an essential step in the loan application process. When you apply for your loan, the lender will send someone to determine the registered value of the property.   This number may differ from the actual price you pay. Because the valuation affects your LVR it’s imperative that if you don’t like the figure you’re given, you find another lender with a more favourable valuer.   I can help you find a great lender and answer any questions you might have about property valuation.   Let's talk! My Very Best To You Always,  
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  Investing versus buying your first home – an overview It’s a well known fact that investing in property helps people break into the market earlier.   If you buy in a high-growth area, you can use your current income and savings to invest in something affordable that will increase in value. This means you’ll have solid foundations to purchase your dream home later down the track.   Banks many also lend you more for an investment property than a first home because they factor in your potential rental income on top of your salary.   If you are ready to take the next step, let's talk and I’ll get back to you so we can run through the numbers together. My Very Best To You Always,  
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Refinancing to consolidate debts We all know life can get messy. Chances are you’re juggling a career, family and social life, all whilst trying to earn enough money to pay off your mortgage and other debts you’ve accumulated over time. Keeping track of all these small payments can feel like an overwhelming burden. I have a solution that could make your life easier. Did you know that you can bundle all your debts into your mortgage for one easy repayment? It’s known as debt consolidation and it’s possible if you refinance your home loan. Luckily, the process can be straightforward. We can go through your debts and look at your existing loan together and then I’ll help you find a new lender that will offer a competitive deal. For most lenders, you will have to show: You’ve held the debt for a minimum of 3 months Statements or an account showing the debt That you are up-to-date on your repayments   There...
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What is an offset account? There’s been a lot of discussion lately around offset accounts and how they can shorten the length of your home loan and even reduce your repayments.   How does this work?   An offset account is a transaction account that is attached to your home loan.   You can use it the same way you would use your everyday banking account, as you’ll receive a debit card and your salary can be deposited directly into it.   So what’s so special about it?   Offset accounts can dramatically change the amount of interest you are paying on your home loan. Everyday, the amount you have in your offset account will be compared to the balance of your mortgage and this will determine how much of your loan you’ll pay interest on.   For example, if you have a $300,000 home loan and $10,000 in your offset account, you’ll only be charged interest on $290,000.   Tell me more…   Becau...
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The Pros and Cons of Buying New or Existing Property I’m often asked whether it’s better to purchase an established property or something new.   Just like the smell of a freshly purchased car, some people really vibe on having a brand new house that no-one’s ever lived in before. It’s free of defects and nothing needs to be repaired.   While they’re often built in up-and-coming areas with brand new parks and facilities nearby, new developments tend to lay on the outskirts of cities, with limited access to public transport.   Existing homes on the other hand tend to be in established suburbs that are close to amenities such as hospitals, schools and transport. They might need a lick of paint or even a full face-lift but the cost of those repairs are minimal compared to the overall value of the house.   Stamp duty exemptions are also something to consider.   If you’re looking at buying property and wondering if you are eligibl...
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How Much Money Will The Banks Lend You? When you finally reach the approval stage of your home loan application, you will be told what your borrowing capacity is. This is the maximum amount of money a bank will lend you.   To work out your borrowing capacity, lenders will look at three key areas. Here’s a brief rundown on each:   1. INCOME How much money the home loan applicants earn on a regular basis is the most important factor. If you’re in a PAYG role then you’ll need to have been in it for at least six months. If you’re self employed, there’s a few extra steps you’ll need to take to verify your earnings.   2. REGULAR DEBTS Everyone has different living expenses and demands. Cutting out home delivery meals, take-away coffees and expensive haircuts is a good idea in the lead up to your loan application. With fewer expenses, lenders will have greater confidence that you can cover your repayments.   If you have an...
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