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  Once you’re settled and financially secure in your home, you might be ready to start thinking about purchasing a second property as an investment. Planning ahead Make sure your first property is secure before looking towards the purchase of a second property. If you are struggling to manage payments on your first property, expanding your property portfolio will not improve your financial position. You will need to demonstrate to a lender that you will be able to manage two home loan repayments, and you will need a back-up plan for any unforeseen issues such as temporary unemployment. Choosing the right property for the right price Start by calculating whether you can manage additional payments and responsibilities. You need to calculate in advance how much rental income you will need to make in order to cover loan repayments. From here, you need to look at the...
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      Which is the right home loan for you? There are a bewildering variety of home loans available, and it can be confusing to figure out which type of home loan is the best for your circumstances. However, when you know the pros and cons of each type of loan, you can make a decision that will fit best with your financial situation. Fixed rate home loan A fixed home loan offers an interest rate that is fixed for a set period of time – usually 1, 3 or 5 or 10 years. The key benefit is the ability to budget, knowing exactly how much your repayments will cost each time. However, a fixed loan doesn’t have the same flexibility as other loans – you will encounter restrictions if you want to make additional repayments, such as fees or capping to a low amount. You might also be disappointed if interest rates drop dramatically and you are still paying the same fixed rate. This is a good option if you...
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      Prevent A Nasty Property Surprise HOMEBUYERS and real estate investors are being warned to watch out for the hidden traps that may be lurking in their potential purchases. Leaky showers, cracked ceilings and self-opening doors and among the signs pointing to bigger and more costly “nasty surprises”, the Association of Building Consultants says. Spokesman Chris Short says understanding a building’s condition and the likelihood of future repairs is vital when assessing a property purchase and managing a mortgage. “Many homes are tidied up for sale, with the pre-sale spruce ranging from a basic clean through to bogging cracks, repainting, retiling and re-grouting, and even new floor coverings,” Short says. “The makeover might look good, but it also masks what might be more sinister problems such as termite damage, salt damp, structural issues, unlicensed and dangerous electrical work, and more. “...
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      Did you know that just because one lender rejects you doesn't mean another won't welcome you with open arms! Use a mortgage broker to help you (for free) find not only the right home loan deal but also the lenders that will actually help you. Using a professional mortgage broker can save you a lot of time and stress. My Very Best To You Always,  
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Why you should choose a mortgage broker over a bank For most people looking for a home loan, the choice is simple – just head to the nearest bank and see what is available. On the surface, this seems like convenient and straightforward option, so why look for a mortgage broker when the bank is right there on the main street? Here are three things a mortgage broker will offer you that your bank won’t: 1. Choice When you visit your bank manager to talk about a bank loan, the manager is going to offer you their latest products. The manager isn’t going to tell you that a rival bank has an offer more closely streamlined to your circumstances. And a year down the track, the manager won’t reward your loyalty by suggesting a new option tailored to your current circumstances. However, your mortgage broker has access to products from countless banks and lenders, so they will find the one that is most suited to your requirements. When your ci...
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      Pros and cons of debt consolidation with your mortgage If you are struggling to keep up with multiple credit repayments – credit card, car loan and mortgage – one option for simplifying the issue is to consolidate all the debts into your mortgage. However, there are also potential negative consequences for consolidating all your other debts with your home loan, so you should consider this strategy carefully and ask for independent advice before making a decision. So what are the pros and cons of debt consolidation with your mortgage? Pros Shifting from multiple payments to one payment When you consolidate your debt, you only need to make one regular payment, so your finances are more organized and you don’t have the stress of doling out minimum payments to multiple lenders. Once you have streamlined your repayment plan, you may even be able to increase the amount of that one repayment. Low...
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      Myths about mortgage brokers Wary about engaging a mortgage broker to see you through the loan application process? There are numerous myths about mortgage brokers that have put people off using their services. Here we debunk some of the more common myths so you can see how a mortgage broker can help you secure the best possible loan for your next property purchase. 1. Mortgage brokers are aligned with one particular lender Many people believe that mortgage brokers are simply a “front” for a specific lender, so their job is to lure you to that lender. In fact, a mortgage broker is fully licensed, and relies on their knowledge of the whole mortgage market to provide you with the best mortgage for your individual needs. 2. Mortgage brokers will charge you for their time As the client, you do not pay the mortgage broker – once you are approved for a loan, the lender pays a commission to the mort...
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  Questions to ask your broker 1. What are your qualifications? Before discussing your own finances, check that the mortgage broker is fully qualified to give you professional guidance. As a minimum requirement, an Australian mortgage broker should have a Certificate IV in Finance and Mortgage Broking, and they should operate under their own Australian Credit Licence (ACL) or as a credit representative under another entity’s ACL. 2. Do you have a range of lenders? One of the main benefits of consulting a mortgage broker is that they have the ability to sort through a wide range of products from a wide range of lenders on your behalf. This saves you the stress of trying to assess all the different products on the market in order to work out what is best for your needs. If you feel that your broker is only offering you a limited number of products, feel free to ask why, ...
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      Tips for first home buyers Buying your first property can be a bewildering experience, and there are any pitfalls that could lead to potentially expensive regret. With careful research and financial management, you can buy the right property for your needs while establishing a sound financial investment. Start small and think long-term Property appreciates in value and the toughest part of the journey is actually making that first step into the property market. Rather than having your heart set on a waterfront mansion, think small for your first purchase – look at for a property you can afford more easily, which will work as a step up towards something more aspirational. Your small property will increase in value while you build equity, and this is the ideal foundation for a valuable property portfolio. Calculate how much you can afford to invest It can be tempting to spend a little more on the “best...
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Top Property Investment Mistakes 1. Emotional investment . When you are choosing an investment property, there is no such thing as “love at first sight.” If you make an emotional investment before you have done your research into the location and the rental potential, you are at risk of making an extremely expensive mistake. Investors who let emotion rule their decision-making are far more likely to over-capitalise from the beginning, making it even more challenging to ensure your long term investment will be profitable. Your investment purchase decision should be based on thorough research into the long term profitability of the location and the specific property. 2. Lack of planning Any long term investment strategy requires specific goals and a realistic strategy in order to be successful. Without a clear plan, you will not have any sense of direction, and this could leave you struggling to maintain your financial c...
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