Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.
No one enjoys rejection. But despite this, there are plenty of times in life when we put ourselves in a position where rejection is a possibility.
From applying for a new job to asking the love of your life to marry you, the risk of a knock back isn’t too far away.
Yet we give it a go because the rewards of success outweigh the disappointment of being turned down.
It’s the same when it comes to applying for a home loan.
Sure, you could get a ‘no’ from a lender. But if you get the thumbs up, you’re on the way to buying a home!
This is worth bearing in mind because a new survey by Finder shows that over the past year, one in five (19%) Australians have avoided applying for finance, including home loans, out of fear they’d be knocked back.
The rejection concern that bothers borrowers
According to the research, one key aspect of being knocked back for a loan raises particular concerns for people – and that’s what rejection could do to their personal credit rating.
The thing that is much more likely to impact your credit rating is applying for a loan in the first place.
When you submit a loan application, the lender will usually take a look at your credit report. This is called a ‘hard enquiry’.
It is these enquiries that can lower your score, and they can stay on your credit file for up to five years.
That’s why it makes sense to minimise the number of loan applications you make.
Better still, try and stick to one application and get it right the first time. And that’s where we can really help you out.
How to overcome fear of home loan rejection
Applying for a home loan can be nerve-wracking. After all, there’s a lot riding on loan approval.
But if fear of rejection is holding you back, there is a simple solution. And that’s getting in touch with us.
We can walk you through your credit report to explain any issues that could raise concerns with a lender. And if your credit score is a little low, we can share tips on how to improve it.
Keep in mind though that your credit score is just one piece of the picture that banks look at.
We look at your total position in terms of home loan readiness.
Your income, household expenses, any other debts, and a variety of additional criteria that vary between lenders, all go into the mix of factors that decide whether you get the green light for a loan.
We’ll review it all, help you iron out any kinks in the application, and then line you up with a lender (and loan) that’s a good fit for you.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.
It’s great news for home owners, but not so good for buyers, who may have to take out a bigger loan to fund a property purchase.
On the plus side, not everyone is having to upsize their home loan.
In some cities, new mortgage sizes are staying pretty still or becoming slightly smaller.
What’s the average in your state?
Across Australia the ‘average’ new mortgage is at a record high of $626,055 as of May 2024, according to the Australian Bureau of Statistics. That’s up from $584,607 just 12 months earlier in May 2023.
However, ABS data shows plenty of variation in new loan sizes in different states and territories.
Here’s what’s happening across the country:
NSW – the average new home loan size is currently $767,584, up from $720,029 in May 2023.
VIC – average new home loan is $601,891, slightly up from $598,949 in May 2023 but well below the peak of $651,364 in January 2022.
QLD – the sunshine state’s average new home loan size is $586,627, a solid increase on the May 2023 average of $521,609.
SA – average new home loan of $541,775, a big jump on the May 2023 average of $467,438.
WA – average new home loan of $538,860, up from $472,080 in May 2023.
TAS – the Tassie market has seen very little movement in new loan sizes. The current average is $462,324, just a few thousand dollars shy of the $465,313 average in May 2023.
ACT – the average new home loan across Canberra is $614,242, up from $589,130 in May 2023.
NT – in the Top End, the average new home loan has increased slightly, currently sitting at $437,427 compared to $424,873 in May 2023.
How to potentially whittle away your home loan sooner
No matter where in Australia you are buying a home, managing a home loan can be stressful at a time when interest rates are high.
So, it’s important to look for ways to help ease the pressure.
Choosing an offset home loan, for example, can let you put spare cash to work by helping to lower your monthly interest charges.
It can also allow you to build up a savings buffer while also reducing the overall interest you pay on the loan, and thus, bring the balance down quicker.
If you are unlikely to have substantial savings, looking for a loan that lets you make small, extra repayments at no additional cost can be a way to pay down the loan sooner, and save on interest costs.
Even something as simple as switching from monthly to fortnightly loan repayments could deliver savings on your interest repayments over the course of the loan.
Paying half the monthly amount every fortnight can mean paying the equivalent of an extra month’s repayments each year, helping you forge ahead with the loan without too big an impact on your household budget.
What matters is that you speak to us about a mortgage that suits your unique needs. One that gives you the benefits of the loan features you need, plus a competitive interest rate.
So if you’ve got your eye on a potential new home – or just want to find out your borrowing capacity so you can start searching – get in touch with us today.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
The new financial year has kicked off with a bang for first home buyers! A whopping 45,000 more places have opened up for them under the Home Guarantee Scheme, as well as 5,000 more spots for single parents. Here’s how it could help you buy a home sooner.
Home ownership has long been the great Australian dream, but high property prices are making it tough to save a 20% deposit for many young families.
That’s where the federal government’s Home Guarantee Scheme (HGS) comes in.
It gives first home buyers a leg up into the property market even if they have just a 5% deposit, and it’s proving to be very popular.
Let’s take a closer look at what’s involved by answering a few FAQs.
What is the Home Guarantee Scheme?
The HGS helps first home buyers and single parents buy a place of their own even when they have a small deposit.
Essentially, the government acts as a guarantor for the home buyer’s loan, so there is no need to pay lenders mortgage insurance, which can be a big saving on upfront costs.
In fact, not paying LMI can save buyers anywhere between $4,000 and $35,000, depending on the property price and deposit amount.
Who does the scheme help?
The HGS covers three separate programs, each with a different type of home buyer in mind.
The First Home Guarantee helps eligible first home buyers get into the market with as little as a 5% deposit. From 1 July 2024, an extra 35,000 places became available.
The Regional First Home Buyer Guarantee is dedicated to helping first home buyers who live in regional areas buy a home with just a 5% deposit. An extra 10,000 places have opened up for the 2024-25 financial year.
The Family Home Guarantee supports eligible single parents to buy a home with as little as a 2% deposit. This will help up to 5,000 families this financial year.
Am I eligible for the Home Guarantee Scheme?
You’ll need to tick a few boxes to be eligible for the HGS.
In particular, there are limits around the maximum purchase price for a home under the scheme. The upper limits vary between cities and across regional areas from state to state, and are adjusted each financial year.
One way to find out if you’re eligible is to call us and we can walk you through the various requirements.
Do all banks support the Home Guarantee Scheme?
No. Lenders choose to be part of the HGS, and while there is a reasonably wide choice of banks to pick from, not all lenders have signed up.
The Real Estate Institute of Australia says the “best way to see if you can qualify for the scheme and seek pre-approval is to speak with a mortgage broker”.
To date, mortgage brokers have secured up to 80% of the HGS placements, and we can guide you through the application process, answer any questions you may have about buying a first home, and recommend a home loan option suited to your needs from the lenders that are part of the scheme.
Call us today to find out more about buying with a 5% deposit – and zero lenders mortgage insurance. You could be in your own home a lot sooner than you expected!
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
We all love the idea of landing a bargain property, but for most home buyers, the real issue is whether they are overvaluing a place and paying too much in the process.
Buying a home is exciting, but it’s perfectly natural to be nervous given that you are likely committing to spending hundreds of thousands of dollars (or millions!). But with a bit of research, and some other handy tips, you can help protect yourself when the bidding or negotiation begins.
Why it is important to pay a fair price
Paying above the odds for a home can have serious financial impacts. The more you pay, the more you may need to borrow to fund the purchase. That can mean paying higher loan repayments, potentially leaving your budget stretched, especially if interest rates rise.
The worst case scenario is you get caught out by a bank valuation that comes in lower than the purchase price, leaving you facing a funding shortfall.
The question is – how do you know if the asking price for a home is in line with the market or if it is completely over the top?
Research helps you nail the market
One way to understand what a home is worth is to have a pre-purchase valuation. This involved a professional valuer examining the property and arriving at a value based on factors such as the location, size and condition of the home. The catch is that a valuation can cost between $200 to $600. It also takes time to organise and in a fast-moving market, the delay could see you miss out on a property.
A cheaper option is to do plenty of your own research. Websites like realestate.com.au or domain.com.au can show the median house and apartment values for individual suburbs. This will give you as good starting point, though as each home is different, you will need to drill down further.
Factors that can impact market value
Some factors can see broadly similar properties have very different market values. Things to watch out for include:
The lot size a house sits on.
The number of bedrooms and bathrooms.
The condition of a home.
Availability of parking (off-street parking is a plus!)
Orientation. North-facing homes receive more natural daylight, and so often require less artificial lighting or heating.
Energy efficiency. PropTrack found that three out of five (59%) buyers say eco-features such as solar panels are important to help save on power bills.
The street. Be wary of streets that become a commuter parking lot on weekdays.
Views and outlook.
Zoning and planned developments.
Bearing all these features in mind, check out recently sold properties like the one you are interested in buying. Pay particular attention to the final sale price, not the asking price. It is the selling price that sets the market.
Don’t be afraid to negotiate
If you have done your homework, you should have a reasonable idea if the asking price of a place is close to the mark or if it is wishful thinking. Remember, you may also have scope to pay less by negotiating on price. Bear in mind though that the longer negotiations take, the greater the danger of someone else jumping in and snatching the property.
Get in touch with us about pre-approval
Give us a call to discuss some of the benefits of home loan pre-approval. It can help you act quickly when you see a home you are interested in buying, and it sets a buying limit so that you can negotiate with confidence.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any
When it comes to buying investment properties, younger Australians are punching above their weight, with Millennials taking the title as the nation’s most active generation for property investment.
Investors are continuing to flock to the property market, with the Australian Bureau of Statistics saying the volume of new investor loans in February was 21.5% higher compared to a year ago.
Investment loans now make up half of the growth in new loans over the past year. But in an unexpected twist, it isn’t older generations of Australians who are leading the charge to buy rental properties.
Younger investors flex their muscles
New data from the Commonwealth Bank shows Millennials (those born between 1981 and 1996) accounted for almost half (46%) of the bank’s new property investors in 2023. And almost one in three of those buyers purchased an investment property on their own, without the help of a partner.
Gen Xers (1965 to 1980) are also snapping up rental properties, accounting for 37% of CommBank’s new investment property loans in 2023.
Rentvesting – get into the market sooner
Rentvesting is buying property where you can afford, possibility a smaller property in a lower-cost area, and then renting where you want to live.
The CommBank data shows plenty of investors are taking this approach and it makes sense. The average investment loan size is just over $528,000 compared to $624,000 for owner occupiers. And remember, if you purchase the right property, as an investor you could expect to earn rental income. That is extra cash for loan repayments.
In this way, rentvesting could be an opportunity to get started on the property ladder sooner rather than later, without having to make too many lifestyle sacrifices. As the investment property grows in value over time, it can become the stepping stone to buy an owner-occupied home.
The market seems attractive for investors right now
Add in growing expectations that interest rates will start to fall later this year, and CoreLogic says it is likely that property values will continue to rise, giving those today who buy the potential to notch up handy capital gains.
Are you ready to become a property investor?
Talk to us today to find out how much you could borrow, and your likely loan repayments. It could help you become a property investor sooner!
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
Modern Techniques to Prep Your Home for Sale
In today’s bustling real estate market, preparing your home for sale is more crucial than ever. With buyers becoming increasingly discerning, the way you present your property can make all the difference. This article delves into modern techniques to ensure your home stands out and attracts potential buyers.
The Power of First Impressions
First impressions last, especially in the real estate world. The exterior of your home is the first thing potential buyers see, making curb appeal paramount. Consider sprucing up your garden, giving your front door a fresh coat of paint, and ensuring the pathway to your home is inviting and obstruction-free. These small touches can significantly elevate the perceived value of your house for sale.
The Art of Minimalism
In the age of minimalism, less is truly more. Decluttering not only creates a sense of space but also allows potential buyers to envision themselves in the property. A clean, organized home speaks volumes about its upkeep, making it more appealing to those on the hunt.
Modern Home Staging Techniques:
Gone are the days of outdated furniture and drab interiors. Modern home staging emphasizes neutral palettes, contemporary furniture, and strategic layouts that highlight the property’s best features. Consider investing in virtual staging tools, which can digitally transform a space, showcasing its potential to buyers.
Contemporary Design and Neutral Palettes
Contemporary Furniture Selection: Modern home staging involves choosing contemporary furniture pieces that resonate with current interior design trends. These furniture selections often create a fresh and appealing look, capturing the imagination of potential buyers.
Neutral Color Palettes: The use of neutral color palettes, such as soft grays, whites, and beige, offers a clean and timeless canvas that allows potential buyers to visualize their own decor and personal touches in the space.
Declutter and Depersonalize: Removing personal items and decluttering the space are essential aspects of modern home staging. This depersonalization allows potential buyers to focus on the property itself rather than the current owner’s belongings.
Virtual Staging and Technology Integration
Virtual Staging Tools: Investing in virtual staging tools is a contemporary approach to modern home staging. These tools digitally transform spaces by adding furniture, decor, and even making minor structural changes, allowing potential buyers to visualize the property’s potential.
Interactive Virtual Tours: Integration of interactive virtual tours provides potential buyers with an immersive experience, allowing them to explore the property from the comfort of their own home.
Professional Photography and Videography: Modern home staging often involves professional photography and videography, creating visually appealing digital content that showcases the property’s best attributes.
Leveraging Technology
The digital age has revolutionized the way we showcase homes. Virtual tours and 3D presentations allow potential buyers to explore properties from the comfort of their homes. By integrating these technologies, sellers can provide a comprehensive view of their property, giving them a competitive edge in the market.
Addressing Home Repairs
No one wants to invest in a property that requires immediate repairs. Addressing even minor issues, like a leaky faucet or a squeaky door, can make a significant difference. By ensuring everything is in top condition, sellers can instill confidence in potential buyers, assuring them of the property’s value.
The Sensory Experience
Engaging the senses can create a lasting impression. Consider introducing pleasant aromas, like freshly baked cookies or scented candles, to create a welcoming environment. Ambient music can set a relaxed tone, while optimal lighting can make spaces feel warm and inviting.
Documentation and Transparency
Building trust is essential in any transaction. By providing potential buyers with maintenance records, warranties, and other relevant documents, sellers can foster transparency. A pre-inspection report can also be a valuable asset, giving buyers an in-depth understanding of the property’s condition. Additionally, considering asset finance options can further enhance the appeal of your property to potential buyers.
Pricing Strategy
Setting the right price is a delicate balance. While you don’t want to undervalue your property, overpricing can deter potential buyers. Conduct thorough market research, understand local property trends, and consider seeking professional advice, such as from a mortgage broker, to ensure your home is competitively priced.
The modern real estate landscape requires sellers to be proactive and adaptive. By embracing contemporary techniques and understanding buyer preferences, sellers can position their house for sale advantageously. Remember, it’s not just about selling a property; it’s about presenting a potential home that resonates with those considering property investment.
Frequently Asked Questions
What are modern techniques for prepping a home for sale?
Modern techniques involve a combination of digital strategies, such as virtual staging, and traditional methods like decluttering, but with a contemporary twist.
How does virtual staging work?
Virtual staging uses digital tools to furnish and decorate a property’s photos, showcasing its potential without the need for physical furniture or decor.
Is decluttering still relevant in modern home prepping?
Absolutely! Decluttering remains a fundamental step, but today, it also includes depersonalizing spaces to appeal to a broader audience and using storage solutions that are both functional and aesthetically pleasing.
Are open houses still effective, or should I focus on virtual viewings?
While open houses can still be beneficial, virtual viewings have gained popularity, especially in the current climate. Offering both options can cater to a broader range of potential buyers.
How important are high-quality photos and virtual tours in the selling process?
Essential! High-resolution photos and immersive virtual tours allow potential buyers to explore the property online, increasing its visibility and appeal.
How can I use technology to showcase my home’s best features?
drone photography for expansive properties, 3D floor plans, and augmented reality apps that allow potential buyers to visualize changes.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
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Mastering Property Auctions: Strategic Insights for Successful Bidding
In the ever-evolving world of real estate, property auctions have emerged as a popular and potentially lucrative avenue for savvy buyers. Whether you’re an investor eyeing a promising deal or a first-time homeowner seeking a unique property, understanding the intricacies of property auctions can give you a significant edge. This guide delves deep into the strategies and knowledge required to navigate property auctions successfully.
Understanding the Auction Landscape
Property auctions differ significantly from traditional property buying. They often feature properties like foreclosures or fixer-uppers, appealing to a diverse range of buyers. The fast-paced, competitive nature of auctions can be both exciting and daunting, making it essential to comprehend the dynamics at play.
Comprehensive Property Analysis
Before raising your paddle, it’s crucial to conduct a thorough inspection of the property. Research its legal status, title information, and understand its market value. Tools and services are available to assist buyers in evaluating properties, ensuring no hidden surprises post-purchase.
Financial Preparedness and Strategy
Financial strategy is the backbone of successful bidding. Start by setting a realistic budget, factoring in additional costs like auction fees and potential renovation expenses. Secure pre-approval for financing to ensure you’re in a strong position to finalize the purchase. Remember, setting a bidding limit based on a detailed financial analysis can prevent the pitfalls of overbidding.
Psychological Aspects of Bidding
Beyond mortgage brokers, the Royal Commission’s findings have rippled across the financial services industry. From banking to insurance, reforms and changes have been introduced to ensure greater transparency, accountability, and consumer protection. These reforms aim to rebuild trust and ensure that consumers are at the heart of every financial decision.
Post-Auction Steps
Congratulations on your successful bid! Now, it’s time to finalize the paperwork, secure your financing, and take ownership of your property. Whether you plan to renovate, resell, or move in, having a clear post-auction plan can streamline the transition.
Leveraging Professional Guidance
Property auctions, although accessible for independent navigation, often benefit significantly from professional guidance, including mortgage brokers. Engaging real estate experts can streamline the process, providing assistance with legalities, financial optimization, and tailored financing solutions.
Legal Advisory Assistance
Navigating Legal Requirements: Real estate transactions come with legal intricacies. Legal advisors can help you understand and navigate the legal requirements associated with property auctions, ensuring a smooth and compliant process.
Document Preparation: These professionals assist in preparing and reviewing the necessary documents to complete your property purchase or sale, safeguarding your interests.
Conflict Resolution: In cases of disputes or unforeseen issues during the auction process, legal advisors can offer guidance and resolutions to protect your rights.
Lost Property Auctions Guidance
Exploring Lost Property Auctions: In addition to traditional property auctions, real estate professionals can guide you through the intricacies of lost property auctions, where unclaimed items are auctioned off. They can help you understand the process and requirements.
Bidding Strategy: Real estate experts can assist in developing effective bidding strategies, maximizing your chances of success in lost property auctions.
Risk Assessment: Professionals can provide insights into the potential risks and rewards associated with lost property auctions, helping you make informed decisions in this unique auction space.
Property auctions offer a world of opportunities for informed buyers. With the right knowledge, preparation, and strategy, you can navigate these waters with confidence and secure properties that align with your goals.
Frequently Asked Questions
What are property auctions?
Property auctions are public sales where properties are sold to the highest bidder. They are a popular method for buying and selling real estate, offering a transparent and immediate sale process.
Why are property auctions becoming increasingly popular?
Property auctions offer both buyers and sellers a quick and transparent transaction process. For sellers, it can lead to faster sales, while buyers can benefit from potentially securing a property at a competitive price.
Can I back out after winning a bid at a property auction?
No, winning a bid at an auction is a legally binding commitment. If you win, you are expected to finalize the purchase, or you might face legal consequences.
What strategies can help in successful bidding at property auctions?
Some effective strategies include setting a clear budget, observing competitor bidders, using odd bid increments to throw off competition, and projecting confidence throughout the bidding process.
Can I inspect the property before the auction day?
Absolutely! It’s highly recommended to inspect the property, conduct necessary checks, and even get a property valuation to make an informed decision on auction day.
Are there any risks associated with buying at property auctions?
As with any property purchase, there are risks. These might include overpaying due to getting caught up in the auction excitement or buying a property with undisclosed issues. It’s crucial to do thorough research and due diligence.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
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Elevating Your Property Purchase on The Art of Due Diligence
When it comes to purchasing a property, it’s not just about the aesthetics or the location. One of the most crucial steps in the property buying process is due diligence, which often involves seeking guidance from a mortgage broker. This comprehensive approach ensures that you understand all aspects of a property before making a purchase. But what exactly does due diligence mean, and what does it entail? Let’s dive in.
Understanding Due Diligence
Due diligence is a term often thrown around in the property and business world, but its significance in property transactions cannot be understated. At its core, due diligence is the research and analysis of a property or company before a business transaction. In the context of property buying, it means ensuring that the property you’re about to purchase doesn’t have any hidden issues or liabilities.
The Due Diligence Checklist
A thorough due diligence process involves a checklist that potential buyers should consider:
Pest Inspections:
As highlighted in our previous article, pest inspections are crucial. They ensure the property isn’t infested, saving potential future costs.
Property Valuation:
Understanding the true value of the property ensures you’re not overpaying.
Legal Checks:
This includes checking the property’s title, zoning, and any other legalities to ensure there are no surprises post-purchase.
Structural Inspections:
Ensuring the property is structurally sound is vital. This can prevent potential safety hazards and future repair costs.
Neighborhood Analysis:
Researching the neighborhood’s safety, amenities, and future development plans can influence your property’s future value.
Historical Data:
Understanding previous ownership, any past issues, or disputes can provide a clearer picture of what you’re getting into.
The Depth of Due Diligence Meaning
While the term “due diligence” might seem straightforward, its depth goes beyond just ticking off a checklist. It’s about understanding the essence of the property, its past, present, and potential future. It’s an ongoing process that doesn’t just end once the property is purchased. Regular checks, especially in the case of investment properties, can ensure your investment remains sound.
Expert Tips for Effective Due Diligence
Conducting due diligence effectively can be daunting, especially for first-time buyers. Here are some expert tips:
Engage Professionals:
Consider hiring experts, especially for areas you’re unfamiliar with. This could include legal experts, property valuers, or structural engineers.
Visit the Property Multiple Times:
Visiting at different times of the day can give you a better feel for the property and the neighborhood.
Ask Questions:
Don’t be afraid to ask the seller or agent questions. The more information you have, the better.
Frequently Asked Questions
What is due diligence in property purchase?
Due diligence in property purchase refers to the comprehensive research and analysis conducted by a potential buyer to assess the value, risks, and potential of a property before finalizing the purchase.
Why is due diligence important in real estate?
Due diligence is crucial in real estate to ensure that the buyer is making an informed decision, understanding all potential risks, verifying property details, and ensuring that the investment is sound and free from legal complications.
How can due diligence elevate my property purchase?
Conducting thorough due diligence can help you identify potential issues, negotiate better terms, ensure the property’s value, and make a confident and informed investment decision.
What are the key components of due diligence in property buying?
Key components include verifying property ownership, checking for any liens or encumbrances, assessing property condition, reviewing local property market trends, and ensuring compliance with local regulations and zoning laws.
How long does the due diligence process typically take?
The duration of the due diligence process can vary based on the property’s complexity and the buyer’s specific requirements. It can range from a few weeks to several months.
What happens if issues are identified during the due diligence process?
If issues are identified, the buyer can negotiate with the seller to address them, adjust the purchase price, or even decide to walk away from the deal if the concerns are significant.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
THE SIGNS OF FINANCIAL ABUSE – AND HOW TO GET HELP
After decades of families suffering in silence, it seems that the government, media and general public is finally opening their eyes to the realities of domestic abuse. However, the problem goes a lot deeper than just physical violence. Financial abuse is a huge problem in our society, although it is sadly often overlooked and misunderstood – and its keeping women locked in terrible situations for far longer than they need to be.
When financial adviser and author Helen Baker was interviewed in a podcast on the topic recently by Wellness Daily, she revealed some shocking truths. Baker said that, put simply, financial abuse involves “a restriction on people’s independence.” It could take the form of a restrictive allowance, limiting the amount of money the victim has access to and making it difficult for them to afford necessities for themselves or their children. The abusive spouse may be spending up big on their own hobbies or vices, leaving insufficient funds for food or rent, or racking up high levels of debt which the victim then must help to repay.
Financial abuse can prevent victims from working, studying, participating in their community, using transport, accessing medical services and, of course, breaking ties with their abusive partner.
What are the Signs of Financial Abuse?
Baker says signs of financial abuse within a relationship can include:
One party taking on sole control of the couple’s finances
One party restricting access to funds or information from the other party
One party making financial decisions without involving or consulting their spouse
While financial abuse can affect both genders, Baker says women are particularly susceptible.
Added to that the wage gap and the disparity in superannuation that often accompanies taking time out of the workforce to fair a family, and it’s no surprise that news reports are flooded with stories of older Australian women left broker and even homeless in their golden years.
She also cautions that financial abuse can occur regardless of income or socio-economic status, with wealthy women just as vulnerable as their less well-off counterparts. While it often impacts families where one parent works and the other stays at home, professional women earning their own high salaries can also be affected.
Those in second and subsequent marriages are particularly prone to financial abuse, as the family budget becomes more and more stretches by costs such as child support and furnishing a home from scratch following a divorce.
When it comes to dealing with financial abuse, Baker suggests a process which she calls the Four C’s: clarity, control, certainty and confidence. These are the path by which victims can claw back their empowerment. She also advocates the Five Foundations approach to protecting yourself from a financial abusive situation.
The first step, says Baker, is to have an emergency fund that you can access – if you need to leave your partner, for example. Even better, if you can open this account with a different bank and don’t tell anyone about it, you will have more peace of mind.
Frequently Asked Questions
What is the impact of consecutive rate hikes on household budgets?
Financial abuse is a form of mistreatment where one individual manipulates another’s financial resources without their consent, often leading to economic dependence and loss of financial autonomy.
How long does it take for a rate rise to affect my mortgage repayments?
Financial abuse is a common and serious issue, occurring in various relationships, including intimate partnerships, family relationships, and caregiving scenarios. It often coexists with other forms of abuse, making it crucial to recognize and address.
What can I do to prepare for rate hikes?
Common signs include restricting access to financial resources, controlling or monitoring spending, exploiting assets, sabotaging employment opportunities, and accumulating debt in the victim’s name without their knowledge or consent.
How does the RBA’s cash rate affect my mortgage rate?
Financial abuse can have severe and long-lasting impacts, leading to economic instability, loss of financial independence, emotional distress, and a diminished quality of life. It can also hinder the victim’s ability to leave abusive situations due to financial constraints.
Are there any strategies to mitigate the impact of rate hikes?
Addressing financial abuse involves recognizing the signs, seeking support from trusted individuals or organizations, creating a safety plan, and exploring legal options. Financial education and empowerment are also crucial in preventing and overcoming financial abuse.
How does Zippy Financial view Open Banking?
Zippy Financial is committed to providing valuable information and resources on financial abuse, helping individuals recognize the signs and understand the importance of financial independence and security. By offering expert advice and support, Zippy Financial aims to empower individuals to make informed financial decisions and protect themselves from financial exploitation.
The next step is to have a spending and investment plan, a comprehensive budget that takes into account all your income and expenses. One you have ticked these two crucial first steps off, you can move into organising your insurance and superannuation, before finally making sure your will and power of attorney reflect your wishes.
If you or someone you know is experiencing financial abuse, there is help. Many charities, including the Salvation Army and Christians Against Poverty offer free financial counselling, or you can call Lifeline or 1800 RESPECT for advice and support. And most importantly remember (or remind your friend or loved one) that you are not alone.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
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WHERE THERE IS A WILL AND GENUINE SAVINGS THERE IS A WAY!
Inheritances can be a bittersweet part of life, but an inheritance alone won’t always cut it when applying for a home loan. Having genuine savings can help show lenders that you have got what it takes to meet mortgage repayments.
Many older Australians have accumulated a decent amount of wealth throughout their years, it is not uncommon for some of their younger family members to receive help into the property market when they pass away. But an inheritance alone won’t always cut it when applying for a home loan.
In addition, you may be expected to show proof of genuine savings. Being able to put money aside to meet repayments is music to lenders’ ears.
What Counts as Genuine Savings?
Genuine savings are funds that show off your savings progress. Lenders generally look for genuine savings that amount to % of the property purchase price. They also like to see that these savings have been held or accumulated for a minimum of three months.
Regular deposits into a savings account over a three month period.
Term deposits held for at least three months.
Shares or managed funds held for at least three months.
A deposit paid to a real estate agent, builder or developer that was originally in a savings account prior to being paid.
Some lenders may also accept rental payment history as genuine savings. And some may accept equity in existing property, bonuses, cash gifts and even inheritance if it has been held in an account for at least three months, but then again… some may not.
Genuine savings policies often differ between lenders, so it is important to know just what will be accepted by the lender of choice and we can help with that
What does not count as genuine savings?
Here are examples of funds that lenders commonly do not consider:
Gift from parents or family.
First Home Owner’s Grant (FHOG).
Borrowed funds, for example money taken from a personal loan.
Money from selling assets, for example selling a car to raise cash.
But ultimately it depends on the policy of the lender that you are applying with, because some of these examples, such as an inheritance, may be accepted under certain circumstances.
How can I use my inheritance to buy a property?
Some lenders will allow you to use your inheritance towards genuine savings, but with caveats. They will need proof that the money is in fact yours.
The lender may ask for a letter of validation from the executor of the will. They may want to see a copy of the will and grant probate, which proves that it is legally binding. They will also want proof the amount has been deposited into your bank account, or they will want proof from the executor (or solicitor) showing you have legal access to the money.
Furthermore, some lenders require you to hold the funds in your bank account for a minimum of three months before they will count an inheritance as genuine savings.
It is important to get clear on the requirements from the lender of choice.
Frequently Asked Questions
Why is having genuine savings important when applying for a home loan?
Genuine savings are crucial as they demonstrate to lenders the applicant’s ability to manage finances and save money over time, reflecting financial discipline and reliability, which can increase the chances of loan approval.
What are considered as genuine savings?
Genuine savings typically include funds that have been accumulated over time in a savings account, term deposits, shares, or similar investment vehicles. They do not usually include gifts, tax refunds, or borrowed funds.
How can Zippy Financial assist individuals with genuine savings in securing a home loan?
Zippy Financial can guide individuals through the home loan process, offering expert advice and support in finding the right loan product that suits their needs and financial situation, especially focusing on leveraging genuine savings to secure better loan terms.
Can individuals without genuine savings still secure a home loan?
Yes, while having genuine savings can enhance loan approval chances, there are various loan products and lenders available that may accommodate individuals without genuine savings, depending on other financial factors and securities.
How does having a will relate to genuine savings and securing a home loan?
Having a will demonstrates a level of financial responsibility and planning. It reflects an individual’s proactive approach to financial management, which, coupled with genuine savings, can be favorable in the eyes of lenders when applying for a home loan.
What are the benefits of consulting with a mortgage broker like Zippy Financial when exploring home loan options?
Consulting with Zippy Financial provides access to expert advice, personalized service, and a range of loan options from various lenders, ensuring that individuals find the most suitable and competitive home loan based on their unique financial circumstances and preferences.
Give Us a Call
If you are looking to use an inheritance for a home loan, give us a call. With different home loan policies for different lenders, it can be confusing. We can help you work out who accepts what for genuine savings and show you which lenders are willing to work with your inheritance.
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
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