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Gone are the days of outdated furniture and drab interiors.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.

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.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

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.

Connect with Louisa on Linkedin.

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.

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.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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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.

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.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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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.

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.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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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.

Some examples of commonly accepted genuine savings:

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.
Tax refunds.
Inheritance.

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.

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.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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Drive Home Your Dreams: Sell Your Car, Own a Property!

When you are young, being the owner of your very own car is the ultimate dream, and it has been considered a rite of passage for many decades. But has that changed over recent years?

Having the freedom to go wherever you want, whenever you want, is one of the most important milestones of adulthood – at least to teenagers, who have spent their entire life until this point shepperded from point A to point B by loved ones.

However, data from the recent Household, Income and Labour Dynamics in Australia (HILDA) survey shows us that between 2011 and 2016, the number of young Australians getting their driver’s license at the ages of 18 and 19 has actually decreased six per cent.

A 2019 article, Millennial mindset exacerbates car sales slide, published in The Australian Financial Review, discusses this decline in car sales, attributing it to a “greater reluctance by young people to become car owners.” There could be a number of reasons behind this decline, including the cost and increasing regulation and requirements around getting licenced. Also, the uptick in ride sharing and online delivery services such as Uber and UberEats might mean that people don’t require cars as much as they used.

Another potential reason? Young people may be putting their time, energy and money towards buying property instead.

Why You Should Ditch Your Car for a House Deposit Instead

While a large number of Aussies still place huge importance on owning a car, more and more young people are also starting to realise the benefits of forgoing personal modes of transport, all in the name of home ownership.

While real estate is generally always a sound investment, buying a car might not be. It’s common knowledge that once you purchase a car and drive it away, it immediately depreciates in value. This means that car is an asset – one that declines in value every day – rather than being an investment.

The catch here is that the longer you have your car, the less it’s worth. This is due to that depreciation we mentioned, which is the result of regular wear and tear, as mileage racks up, and as more services and fixes are required.

Another little-known fact is that your car loan repayments are doing you no favours with the bank either. While it can be helpful to your credit rating to be paying off a car (provided you are making your repayments on time), the more financial obligations you have each week, the less money a bank or lender is going to be willing to lend you.

For instance, it is estimated that every $5,000 in personal debt you have, reduces your borrowing power by up to $20,000. Having a $20,000 car loan could mean a bank is willing to lend you $80,000 less than it would if you didn’t have a car.

If you are trying to pay off a car loan while simultaneously trying to put money aside to buy a home or an investment property, you might find yourself saving for quite some time. As anyone who owns or has owned a car before knows, you tend to constantly have one hand in your pocket. Car servicing, registration, petrol and general upkeep can all be quite costly.

If you have read this and you are thinking with regret about the car parked in your garage or driveway, don’t despair. Instead, consider whether you could live without it? By selling your car, you will not only enjoy a cash windfall that could be used to help you purchase a property, you will also have less financial obligations every week in terms of repayments, petrol and servicing.

What is the main focus of the article?

The article discusses the trend among young Australians to prioritize buying property over owning a car. It explores the financial implications of owning a car, such as depreciation and loan repayments, and how these can affect one’s ability to buy a home.

Why are fewer young Australians getting their driver’s license?

According to the Household, Income and Labour Dynamics in Australia (HILDA) survey, the number of young Australians getting their driver’s license at the ages of 18 and 19 has decreased by six percent between 2011 and 2016.

How does owning a car affect your ability to buy a property?

Owning a car can reduce your borrowing power when applying for a home loan. For example, every $5,000 in personal debt could reduce your borrowing power by up to $20,000.

What are the financial downsides of owning a car?

Cars depreciate in value over time and require regular maintenance, which can be costly. Additionally, car loan repayments can affect your credit rating and reduce the amount a bank is willing to lend you for a home.

What are the benefits of selling your car when considering property ownership?

Selling your car can provide a cash windfall that can be used as a down payment for a property. It also reduces your weekly financial obligations, making it easier to save for a home.

Are there any alternatives to owning a car that the article suggests?

The article mentions the rise in ride-sharing and online delivery services like Uber and UberEats as alternatives to owning a car, especially for younger people.

Remember: the sooner you start working towards the dream of owning your own property, the sooner it will happen. If you would like to discuss your overall financial situation to see how soon you could buy a home or investment property, contact us today.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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How will New Lending Laws Impact the Property Market?

Since the Royal Commission into financial services ended, there’s been a change in the way that banks and lenders review your home loan applications.

The details of these changes are complicated – I’ll give you a simplified update in a moment. However, the end result has been mortgage brokers like me spending hours upon hours, reading through bank statements to make sure your UberEats, online shopping and AfterPay expenses are all accounted for in your “estimated expenses” list in your loan application.

You see, after the Royal Commission, laws were introduced that were designed to protect you. The government wanted to ensure that borrowers don’t end up biting off more than they can chew financially.

After all, the Royal Commission had revealed story after story of everyday Australians being ripped off or financially disadvantaged, due to banks’ and lenders’ lending money very freely.

When the government realised that many people were getting mortgages and debts that they couldn’t afford, the decision was made to make it harder – much harder – for people to get a loan. They did this by introducing strict and onerous rules and regulations around how a loan application is processed.

As you can imagine, with such a massive shift in the way that banks and lenders assessed loan applications, these changes have resulted in a number of people who would have previously been approved for finance, finding themselves unable to get a home loan.

Impact of Restrictive Lending Laws on Property Markets

With fewer people able to borrow money and less access to finance, most people can’t move forward with a property purchase, so these restrictive lending laws did take some of the competition out of the property market.

Major capital city markets in Sydney and Melbourne were already starting to simmer down after a boom period of strong growth.

When these restrictive lending laws were introduced – together with other regulations, designed to make loans more expensive and hard to access for landlords – property markets slowed down.

In fact, we saw very minimal price growth (or even price falls) in many markets.

Wait – but these restrictive laws are set to change again?

That’s right! One thing these laws didn’t factor in was a forthcoming global pandemic. In an effort to keep the economy ticking over – because property transactions generate a huge amount of taxes and economy activity – the Federal Treasurer Josh Frydenberg has announced that in March 2021, these laws will be wound back.

The goal is to make it easier for consumers to get a loan, once revised laws are passed.

If You’re Considering Buying a Property – What Does This Mean?

If you have been locked out of the market and unable to access finance, this means you should have an easier time gaining loan approval.

For borrowers who are already able to access finance, this means you should consider acting sooner rather than later!

This is because in March next year, there’s going to be a big increase in the number of people who can afford to buy property.

When demand for property surges, and supply doesn’t meet the demand, then prices go up. So if you wait until next year to take action when you’re ready to buy now, you could find yourself competing against many more people.

I’m not a property expert, but I am an expert when it comes to finance. Whether you’re ready to start property shopping now or you think you’re still 12 months away, feel free to get in touch as my team and I can help you get “home loan ready”.

This is really important, because all of the banks and lenders have wildly different policies at the moment. I can have a borrower in front of me who would easily be approved by Bank A, but who would be rejected by Bank B – simply because their appetite for risk and their policies are different.

What changes have been made to lending laws since the Royal Commission into financial services?

The Royal Commission led to stricter lending laws designed to protect borrowers from taking on more debt than they can handle. These laws have made it more difficult for people to get approved for loans.

How have these new lending laws affected the property market?

The stricter lending laws have reduced the number of people who can borrow money, which in turn has taken some competition out of the property market. This has led to minimal price growth or even price falls in many markets.

Are there any plans to change these restrictive lending laws?

Yes, the Federal Treasurer Josh Frydenberg announced that these laws will be wound back in March 2021 to make it easier for consumers to get a loan.

What does this mean for potential homebuyers?

If you have been unable to access finance due to these laws, you may find it easier to get loan approval once the laws are revised. For those who can already access finance, it may be beneficial to act sooner rather than later.

How do these lending laws affect property prices?

When demand for property surges and supply doesn’t meet the demand, property prices go up. The easing of lending laws is expected to increase the number of people who can afford to buy property, potentially driving up prices.

Why is it important to consult a mortgage broker?

Different banks and lenders have varying policies, and a mortgage broker can help you navigate these to find a loan that best suits your needs. They can also help you get “home loan ready” and may find a lender willing to approve your loan when your bank says no.

Get in Touch

This is why my advice is to speak to a broker for tailored advice, if you wish to refinance or you are thinking of buying a home. We may be able to help you get into a loan that saves you a small percentage on interest, or we may be able to find a lender willing to approve your loan when your bank says no. As a broker we always act in your best interests and best of all, our service is free! The banks pay our commission, not you – so you have nothing to lose, and everything to gain.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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Where Homeowners Are Spending $1 Billion a Month

In the ever-evolving landscape of the Australian housing market, homeowners are continuously finding new ways to invest in their properties. The trend of home renovations continues to surge, with Australians collectively spending around $1 billion each month on home improvements. This trend, driven by both necessity and desire, highlights the changing priorities and aspirations of homeowners across the nation.

The Current Housing Market and Homeowner Trends

The current state of the housing market has a significant influence on homeowner decisions. With rising property values and a competitive market, many homeowners are opting to renovate existing properties rather than purchasing new ones. This trend is particularly noticeable among first homeowners, who are looking to add value to their initial investments.

Market Dynamics Impacting Homeowner Trends

Property Value Escalation: Understand the dynamics of rising property values. Analyze the factors contributing to the escalation, such as demand-supply imbalances, economic conditions, and regional growth. This awareness provides insight into the broader market trends influencing homeowners’ decisions to renovate rather than buy.
Competitive Real Estate Landscape: Explore the competitive landscape of the real estate market. High demand and limited inventory often create a competitive environment for homebuyers. This intensification prompts existing homeowners to consider renovations as a strategic alternative to navigating the challenges of purchasing in a fiercely competitive market.
Interest Rate Fluctuations: Consider the impact of interest rate fluctuations on homeowner decisions. Periods of low-interest rates may incentivize homeowners to invest in renovations, leveraging favorable financing conditions to enhance their properties without the financial burden associated with a new mortgage.

Motivations Behind Home Renovations

Value Addition Perspective: Examine the motivation of homeowners, especially first-time buyers, in choosing renovations. Many see renovations as an opportunity to add substantial value to their initial property investment. This approach aligns with a long-term strategy of building equity and creating a personalized living space.
Avoiding Property Purchase Challenges: Acknowledge the challenges associated with property purchases in a competitive market. High prices, limited inventory, and bidding wars can be deterrents for potential homebuyers. Opting for renovations allows homeowners to circumvent these challenges while still achieving the desired upgrades or expansions.
Customization and Personalization: Recognize the desire for customization and personalization. Renovations offer homeowners the chance to tailor their living spaces to specific preferences, meeting lifestyle needs without the compromises that might come with purchasing an existing property.

Evolving Renovation Trends

Recent years have seen a shift in renovation trends. Homeowners are now focusing on creating more sustainable and energy-efficient living spaces. This includes the installation of solar panels, energy-efficient appliances, and the use of eco-friendly materials. The integration of smart home technology is also on the rise, as homeowners look to enhance convenience and modernize their living spaces.

Financial Aspects of Renovating

The financial commitment involved in home renovations is substantial. Homeowners need to be savvy about their spending, especially in a fluctuating economy. Financing options have become more diverse, with many seeking renovation loans or utilizing savings to fund their projects. The key is to balance the desire for aesthetic upgrades with practical, value-adding improvements.

The latest Archicentre Cost Guide sets out typical costs for popular home improvements. As a guide, you can expect to pay:

$75-$120 per square metre to polish timer floorboards
Up to $35 per square metre for interior painting
Up to $4,600 for an extension
Up to $48,000 for a new kitchen (excluding appliances)

While home improvements may not come cheap, quality renovations can boost your lifestyle and your home’s value. They can also be a money-saver – ‘green’ improvements such as installing rooftop solar panels can put money back in your pocket through lower utility bills.

The Rise of Eco-Friendly Renovations

Sustainability is no longer just a buzzword; it’s a key consideration for homeowners undertaking renovations. Eco-friendly renovations not only contribute to a healthier environment but can also offer long-term financial savings. Homeowners are increasingly aware of their environmental footprint and are making conscious choices to reduce it through their home improvement projects.

Technological Advancements in Home Improvement

Technology has revolutionized home renovations. From virtual consultations with designers to the use of augmented reality for visualizing changes, technological advancements have made the renovation process more accessible and efficient. Homeowners are embracing these technologies to ensure that their renovations are in line with the latest trends and conveniences.

Expert Insights on Home Renovation Trends

Industry experts emphasize the importance of thoughtful planning and market research before undertaking any renovation project. They advise homeowners to consider not only current trends but also the long-term impact of their renovations on property value and lifestyle.

Case Studies: Successful Home Renovation Stories

Real-life success stories of homeowners who have successfully navigated the renovation journey can provide valuable insights and inspiration. These stories highlight the challenges faced, solutions found, and the joy of transforming a space into something uniquely personal and functional.

The trend of homeowners investing heavily in home renovations is a testament to the changing dynamics of property ownership in Australia. As homeowners continue to adapt their living spaces to meet their evolving needs, the industry is set to see continued growth and innovation. Seeking guidance from professionals such as mortgage brokers and financial planning experts can further enhance your approach to property investment and renovations, ensuring alignment with long-term financial goals.

Why are Australian homeowners spending so much on renovations?

Homeowners are investing in renovations due to the rising property values and a competitive housing market. Renovations are seen as a way to add value to existing properties and enhance living spaces.

What types of renovations are most popular among homeowners?

Popular renovations include sustainable and energy-efficient upgrades like solar panels, smart home technology, and eco-friendly materials. Kitchens and bathrooms also remain high on the renovation list.

How are current housing market trends influencing homeowner decisions?

With the increasing cost of properties, many homeowners are choosing to renovate their existing homes instead of buying new ones, especially first homeowners looking to increase their property’s value.

How are eco-friendly renovations beneficial?

Eco-friendly renovations can reduce a home’s environmental impact and lead to long-term savings through reduced utility bills. They can also increase a property’s appeal and value.

Can renovations significantly increase a home’s market value?

Quality renovations can significantly increase a home’s market value, especially if they improve functionality, aesthetic appeal, or energy efficiency.

How can homeowners get started with their renovation projects?

Homeowners should start by defining their goals, setting a budget, exploring financing options, and consulting with professionals like architects, designers, and financial advisors to ensure a successful renovation project.

Get Started on Your Renovation

If a renovation is on your bucket list, call us to discover the options available to fund your project and the costs involved.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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Apartment Living: a Head Start into the Real Estate Market

Buying a home for the first time can be challenging, especially with house prices soaring in recent years. Could switching from house hunting to apartment hunting be the way forward?

There is no denying that getting into the property market in today’s economic climate is not easy. The average Australian house price is now $725,000 – that is 30% more expensive than the average national apartment price.

Comparing the price gap to September 2021, when the national median house price was $570,000 – just 9.6% higher than the median apartment price of $520,000. But is opting for an apartment the right move for you?

Here we will look at the pros and cons of buying an apartment for your first home.

Affordability, Lifestyle, and Location

Apartments are usually more affordable than houses. Median capital city house prices have grown 31.6% in the past five years, while apartments have only increased by 9.8%.

Lower prices make it quicker for you to save a deposit for an apartment and could also make you eligible for better stamp duty concessions (either reducing your stamp duty bill or eliminating it entirely depending on your state or territory).

Whilst an apartment may not always have space to accommodate future expansions to your life and family, they are often located in thriving local community hubs with amenities, shops, and transport at your doorstep, which is great for young families still wanting to be in the middle of the action.

Potential for Investment

Owning a house can have advantages over owning an apartment. For starters, you don’t have to fork out for body corporate fees and the capital growth you can gain from owning a plot of land often makes house ownership more attractive.

But buying an apartment, rather than holding off until you can afford a house also offers investment potential. By purchasing an apartment, you are investing and building up your equity rather than paying off someone else’s mortgage if you are renting.

While you may not be able to buy the house just yet, an apartment can provide a valuable stepping stone to reaching that goal. And you should be able to hang onto the apartment when you upgrade to a home, where you could get rental income if you buy in the right spot.

The apartment upkeep can also be easier because those body corporate or strata fees go towards various maintenance activities.

Other Affordable Options

If apartment living is not for you, there are other cost-effective options to explore.

You could consider searching slightly further, with recent research identifying “sister suburbs” that are up to 200% cheaper than their in-demand neighbouring suburbs.

Rent-to-own arrangements could also make it easier for you to get into the market. These arrangements enable tenants to buy the property they have been renting once the lease ends, at a previously agreed price.

Whether you are in the market for a house or an apartment, there are government schemes that can help you fast-track home ownership and save. The federal government has three low deposits, no lenders mortgage insurance (LMI) schemes available for eligible first-home buyers, regional first-home buyers, and single parents. Eligible buyers can purchase a home with a deposit of as little as 5% through the First Home Guarantee and Regional First Home Guarantee. Not paying LMI can save anywhere between $4,000 and $35,000 – depending on the property price and the deposit amount. Furthermore, eligible first-home buyers can bundle the federal home guarantee schemes with other state government first-home buyer grants and stamp duty concessions for major savings.

Why is buying an apartment considered a head start into the real estate market?

Buying an apartment is generally more affordable than buying a house, making it easier for you to save for a deposit. Apartments are often located in convenient areas with easy access to amenities, shops, and transport, making them an attractive option for first-time homebuyers.

What are the hidden costs associated with owning an apartment?

Owning an apartment usually involves paying body corporate or strata fees, which go towards maintenance activities. These fees are an additional cost to consider when budgeting for an apartment.

How can owning an apartment be a good investment?

Owning an apartment can serve as a stepping stone to owning a house. It offers investment potential as you can build equity and even earn rental income if you buy in the right location.

What are some alternative affordable options for entering the property market?

You could consider rent-to-own arrangements or look for properties in “sister suburbs” that are cheaper than in-demand neighboring areas. Various government schemes can also help you fast-track homeownership.

How can government schemes assist in buying an apartment?

The federal government offers low deposit, no lenders mortgage insurance (LMI) schemes for eligible first-home buyers, regional first-home buyers, and single parents. These can be bundled with state government grants and stamp duty concessions for additional savings.

What role can Zippy Financial play in helping me buy an apartment?

Zippy Financial can assist you in finding a suitable loan, organizing your finances, and informing you about government schemes you may be eligible for, helping you get into your first home sooner.

Get in Touch

If you would like to stop renting and get a place of your own, give us a call. Not only can we help you find a suitable loan and help organise your finances, but we also know the government schemes you may be eligible for to help you get into your first home sooner.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

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Breaking Free: Unleashing Yourself from the Mortgage Trap

Have you been keen to refinance but told you can’t? You are not alone. Many Australian households are currently locked into their home loans due to rising interest rates, but some banks have recently started to lower their serviceability thresholds.

As interest rates have climbed, Australians have refinanced in unprecedented numbers. In fact, a record high of $21.3 billion in refinancing took place in March 2023, according to ABS statistics, which is 14.2% higher compared to a year ago. But some people are now unable to refinance and take advantage of potential savings because they don’t meet lender requirements. They are locked into what is called “mortgage prison”.

What Is Mortgage Prison?

APRA has guidance in place that required lenders to stress-test all new mortgage applications at 3% above the interest rate the borrower applies for, even when refinancing. And since the RBA’s official cash rate has increased from 0.10% to 4.10% in just over a year, many mortgage holders are now unable to refinance because they can no longer meet the 3% mortgage serviceability buffer.

There is an “exceptions to policy” in APRA’s guidance that states lenders can override the 3% buffer for exceptional or complex credit applications if done prudently and on a case-by-case basis.

Recently some big players, including Westpac and Commonwealth Bank (CBA), reduced their refinancing serviceability buffers to as low as 1% if borrowers meet certain circumstances. Other smaller lenders are making similar moves, including Westpac subsidiaries St George, Bank of Melbourne and BankSA.

Many in the industry hope this will reduce mortgage stress and defaulted loans, given the current financial climate of rising rates and inflation.

What Are the Eligibility Requirements?

They differ from lender to lender.

For CBA you will need to have a loan-to-value ratio of at least 80%, a clean record of meeting all debt repayments over the past year and be refinancing to a principal and interest loan of a similar or lower value. You will need to meet the 1% mortgage serviceability buffer too.

For Westpac’s new “streamlined refinance”, you must have a credit score of more than 650. You will also need a good track record of paying down all existing debts over the last year, refinancing to a loan that has lower monthly repayments than the existing loan and meet the 1% buffer test too.

What Is the Catch?

For example, under CBA’s new policy, borrowers must extend their loan term to 30 years. Obviously, this can cost you quite a lot in interest over the long run.

RateCity research shows that if you took out a $500,000 loan with a Big Four bank three years ago, and if you applied for CBA’s refinancing offer, your mortgage repayments could drop by as much as $235 a month. But over the long run, you could pay up to an extra $32,117 in interest because you would be extending your loan by an additional three years.

So, whilst this option could help alleviate some financial stress now, you may have to pay for it over the long run, so there is a bit to weigh up.

What is “Mortgage Prison”?

Mortgage prison refers to the situation where homeowners are unable to refinance their existing home loans due to not meeting the lender’s serviceability requirements, often due to rising interest rates.

How have recent changes in interest rates affected refinancing?

The RBA’s official cash rate has increased from 0.10% to 4.10% in just over a year. This has led to many mortgage holders being unable to refinance because they can no longer meet the 3% mortgage serviceability buffer set by APRA.

What are the new serviceability buffers set by some banks?

Some big banks like Westpac and Commonwealth Bank have reduced their refinancing serviceability buffers to as low as 1% for borrowers who meet certain criteria. This is part of an “exceptions to policy” in APRA’s guidance.

What are the eligibility requirements for these new serviceability buffers?

The requirements differ from lender to lender. For example, for CBA, you need to have a loan-to-value ratio of at least 80% and a clean record of meeting all debt repayments over the past year. For Westpac, you must have a credit score of more than 650.

Is there a catch to these new serviceability buffers?

Yes, extending your loan term could result in paying more interest over the long run. For example, under CBA’s new policy, you could pay up to an extra $32,117 in interest because you would be extending your loan by an additional three years.

How can Zippy Financial help me navigate these changes?

Zippy Financial can guide you on ways to improve your chances of refinancing success and help you escape “mortgage prison.” They specialize in home loans, property investment, and vehicle finance.

Are the Recent Serviceability Changes Right for You?

Give us a call to find out more about refinancing and successfully navigating serviceability thresholds. We can guide you on ways to improve your chances of refinancing success and help you escape “mortgage prison.”

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Modern Techniques to Prep Your Home for Sale

The Power of First Impressions

The Art of Minimalism

Modern Home Staging Techniques:

Contemporary Design and Neutral Palettes

Virtual Staging and Technology Integration

Leveraging Technology

Addressing Home Repairs

The Sensory Experience

Documentation and Transparency

Pricing Strategy

Frequently Asked Questions

What are modern techniques for prepping a home for sale?

How does virtual staging work?

Is decluttering still relevant in modern home prepping?

Are open houses still effective, or should I focus on virtual viewings?

How important are high-quality photos and virtual tours in the selling process?

How can I use technology to showcase my home’s best features?

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Mastering Property Auctions: Strategic Insights for Successful Bidding

Understanding the Auction Landscape

Comprehensive Property Analysis

Financial Preparedness and Strategy

Psychological Aspects of Bidding

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

Legal Advisory Assistance

Lost Property Auctions Guidance

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?

Why are property auctions becoming increasingly popular?

Can I back out after winning a bid at a property auction?

What strategies can help in successful bidding at property auctions?

Can I inspect the property before the auction day?

Are there any risks associated with buying at property auctions?

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Elevating Your Property Purchase on The Art of Due Diligence

Understanding Due Diligence

The Due Diligence Checklist

Pest Inspections:

Property Valuation:

Legal Checks:

This includes checking the property’s title, zoning, and any other legalities to ensure there are no surprises post-purchase.

Structural Inspections:

Neighborhood Analysis:

Historical Data:

The Depth of Due Diligence Meaning

Expert Tips for Effective Due Diligence

Engage Professionals:

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?

Why is due diligence important in real estate?

How can due diligence elevate my property purchase?

What are the key components of due diligence in property buying?

How long does the due diligence process typically take?

What happens if issues are identified during the due diligence process?

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THE SIGNS OF FINANCIAL ABUSE – AND HOW TO GET HELP

What are the Signs of Financial Abuse?

Frequently Asked Questions

What is the impact of consecutive rate hikes on household budgets?

How long does it take for a rate rise to affect my mortgage repayments?

What can I do to prepare for rate hikes?

How does the RBA’s cash rate affect my mortgage rate?

Are there any strategies to mitigate the impact of rate hikes?

How does Zippy Financial view Open Banking?

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WHERE THERE IS A WILL AND GENUINE SAVINGS THERE IS A WAY!

What Counts as Genuine Savings?

What does not count as genuine savings?