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Gone are the days of outdated furniture and drab interiors.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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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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Are We Witnessing a Resurgence in the Property Market?

Navigating the Australian property market over the last year has felt like standing on shifting sands, but is the market starting to regain stability? And if so, what can you do now to make sure you are ready to buy?

Anyone with an eye on the property and finance market over the past few years has seen their fair share of thrills and spills. It has been anything but eventful. But with the RBA’s rapid-fire hikes slated to peak in 2023, is there a property upswing afoot?

Westpac’s economists seem to think so as they are predicting that the housing correction is winding down. The bank forecasts that Australian property prices will grow by 5% in 2024 after stabilising throughout 2023.

The Big Four Banks’ Cash Rate Predictions

There are Other Benefits Too

The RBA raised the cash rate to 3.85% in May 2023. Understandably this has made some would-be buyers gun-shy when it comes to pulling the trigger on applying for a home loan and buying a house. But Australia’s four major banks have topped that 2023/2024 could see the cash rate start to decline.

Here is what they are predicting:

CBA: peak of 3.85% reached and will drop to 2.60% by August 2024.
Westpac: peak of 3.85% reached and will drop to 2.10% by May 2025.
NAB: peak of 3.85% reached and will drop again in 2024.
ANZ: peak of 4.10% by August 2023 and then will drop to 3.85% by November 2024.

So whichever financial institution you choose to listen to, it looks like we have either reached the cash rate peak or are very close to it. And what goes up must (hopefully) come down.

Property Prices Are Back on the Move

In 2022 we saw national property prices take a small, but not insignificant, hit. In response, sellers started waiting it out for a better price, creating a slim-picking situation for house hunters.

However, Property Investment Professionals of Australia (PIPA) chair Nicola McDougall has stated that property prices look to be stabilising, partly due to the low volume of housing stock for sale.

Meanwhile, CoreLogic data shows that the three months to April marked the first quarterly boost to national property values since this time last year, with a 1% rise.

Why is this good news if you are looking to buy? Well, hopefully you’ll soon have more suitable housing options to choose from as owners start to list again. And with interest rates predicted to decline in 2023/2024, getting prepared now could put you in good stead to buy when the time is right.

What does the RBA’s cash rate mean for homebuyers?

The RBA’s cash rate influences the interest rates offered by banks. A higher cash rate generally means higher interest rates for home loans, while a lower rate could lead to cheaper loans.

How reliable are the cash rate predictions from the Big Four Banks?

While the predictions from Australia’s Big Four Banks are based on extensive research and market analysis, they are still subject to change due to various economic factors. Always consult multiple sources and consider your personal financial situation.

What impact do property prices have on homebuyers?

Rising property prices can make it more challenging for new buyers to enter the market but can benefit those who already own property. Conversely, falling prices can present buying opportunities but may negatively impact current homeowners.

How can first-home buyers benefit from government schemes?

Government schemes like low deposit and no lenders mortgage insurance programs can help first-home buyers enter the market sooner by reducing upfront costs.

What should I do to prepare for a property purchase?

Preparing for a property purchase involves multiple steps, including saving for a deposit, getting pre-approved for a loan, and researching the property market. Consulting a mortgage broker can provide personalized advice tailored to your needs.

Is now a good time to buy property in Australia?

The “right time” to buy property varies depending on individual circumstances and market conditions. With interest rates predicted to decline in the coming years and property prices stabilizing, now could be a favorable time for some buyers. Read more about this article here: https://zippyfinancial.com.au/best-time-to-buy-property-in-australia/

How can Zippy Financial assist me in navigating the property market?

Zippy Financial offers expert mortgage brokerage services, helping you find the best loan options, get pre-approved, and navigate the complexities of the property market.

Give Us a Call Today

With all the above in mind, getting your pre-approved finance in place now could have you primed to pounce on your ideal home ahead of the next property market upswing.

If you don’t think your deposit is quite there yet, keep in mind that a new round of federal government’s low deposit, no lenders mortgage insurance schemes are set to become available from the 1st of July, which can help first-home buyers, regional buyers and single parents crack the market 5 years sooner (on average).

If you would like to find out more, get in touch today and we can run you through your options and help arrange your finances.

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:

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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Real Estate Rebound: Listings & Prices on the Rise?

The Australian property market is experiencing a significant resurgence, marked by dynamic trends in property prices and listings. This article delves into the current state of the property market in Australia, examining the interplay of economic policies, global events, and their collective impact on real estate dynamics.

Current Market Trends

Recent data indicates a notable uptick in house prices across Australia, coupled with an increase in property listings. According to a report by news.com.au, the market is witnessing record-high house prices. This surge is attributed to a combination of factors, including historically low interest rates, attractive government incentives, and evolving buyer preferences, reshaping the property landscape.

Prices look like they are starting to bounce back, with March heralding a 0.6% increase in national property prices, according to CoreLogic, and listings are following suit. ProTrack data for March showed new listings on realestate.com.au has risen by 10.4% month-on-month, making it the busiest month for new listings since May 2022.

The Impact of Economic Policies

The Reserve Bank of Australia’s rate hikes and monetary policies are significantly influencing the property market. As highlighted in The Guardian, these economic measures are reshaping borrowing capacities, affecting demand and affordability in the housing sector. The ripple effects of these policies are crucial in understanding market fluctuations and future trends.

When the RBA announced its rate rise pause, many financial and property analysts, including CoreLogic, estimated the pay may give rise to increased prices due to a boost in buyer confidence. But there are other compounding factors that were influencing the pricing upswing before the rate rise pause.

Opportunities and Challenges for Buyers

In this vibrant market, buyers are presented with both opportunities and challenges. The increase in listings offers more choices, but it also brings heightened competition and potential affordability issues. Navigating these complexities requires a strategic approach to property investment and purchase.

Expert Insights and Predictions

Real estate experts provide valuable insights into the future of the property market in Australia. Predictions suggest a continued fluctuation in property prices and interest rates, influenced by economic policies and market sentiments. Understanding these predictions is vital for both buyers and sellers in making informed decisions.

Practical Advice for Buyers and Sellers

For buyers, assessing borrowing capacity and exploring diverse loan options, including asset loans, are key steps in capitalizing on current market conditions. Sellers, on the other hand, can leverage these trends to achieve optimal sale outcomes. Practical, informed strategies are essential in this ever-evolving market.

Practical Steps for Buyers

Assessing Borrowing Capacity: Begin by thoroughly assessing your borrowing capacity. Consider factors such as income, expenses, credit history, and existing debts. Utilize online calculators or consult with a mortgage broker to understand the maximum loan amount you can comfortably afford.
Diversifying Loan Options: Explore diverse loan options to find the one that best aligns with your financial goals and risk tolerance. Consider fixed-rate and variable-rate mortgages, government-backed loans, and different lenders. Each option comes with its unique benefits, and diversifying your loan portfolio can provide flexibility and potential cost savings.
Getting Pre-Approved: Obtain pre-approval for a mortgage before house hunting. A pre-approval not only streamlines the buying process but also gives you a competitive edge in negotiations. Sellers often favor buyers with pre-approved financing, as it demonstrates a serious and qualified intent to purchase.

Strategies for Sellers to Optimize Sale Outcomes

Understanding Market Trends: Stay informed about current market trends to strategically position your property. Understand factors such as demand, supply, and pricing dynamics in your local real estate market. This knowledge empowers sellers to set realistic and competitive asking prices.
Enhancing Property Appeal: Invest in enhancing the appeal of your property. Small renovations, aesthetic improvements, and well-maintained landscaping can significantly impact the perceived value of your home. A visually appealing property is likely to attract more interest and potentially lead to higher offers.
Strategic Pricing: Set a strategic and competitive pricing strategy. Avoid overpricing that may deter potential buyers, and be mindful of underpricing that could undervalue your property. Consulting with a real estate agent can provide insights into the optimal pricing strategy based on market conditions.

Shared Strategies for Buyers and Sellers

Engaging Professionals: Both buyers and sellers benefit from engaging professionals in the real estate process. Buyers should consider consulting mortgage brokers to navigate financing complexities, while sellers can seek guidance from real estate agents for effective marketing, negotiations, and transaction management.
Flexible Negotiation Approaches: Adopt flexible negotiation approaches. Buyers may explore options such as negotiating closing costs or requesting property improvements, while sellers may consider flexible closing timelines or incentives. A collaborative and adaptable negotiation process increases the likelihood of a successful transaction.
Leveraging Technology: Embrace technology for property searches, virtual tours, and digital marketing. Buyers can efficiently explore available properties online, and sellers can leverage virtual platforms to showcase their homes. Technology enhances the efficiency and reach of real estate transactions in today’s digital age.

The Australian property market is in a state of flux, with significant trends shaping the real estate landscape. Staying informed and seeking professional advice is crucial in navigating this dynamic environment. Whether you are a buyer or a seller, understanding the latest trends in the property market in Australia is key to making successful real estate decisions.

What is causing the recent rebound in real estate listings and prices?

The rebound is likely due to a combination of factors including low interest rates, government incentives, and a shift in buyer preferences post-pandemic.

Are all regions experiencing a rise in real estate prices?

While many areas are seeing an increase, the trend can vary significantly by region and property type. Urban and suburban areas might experience different trends.

How significant is the increase in property prices?

The increase varies, but some areas are reporting significant growth in property values due to high demand and limited supply.

What impact does the rebound have on first-time homebuyers?

The rising prices may pose challenges for first-time buyers, making affordability a key concern. However, low interest rates could offset some of these challenges.

What should potential buyers consider in this rising market?

Buyers should consider their budget, the potential for further price increases, interest rates, and long-term investment value.

What advice is there for investors in the current market?

Investors should conduct thorough market research, consider long-term trends, and be cautious of over-leveraging in a rapidly changing market.

Get in Touch

Secure your dream home! It’s the ideal time to get in touch with a reliable mortgage broker because of the increase in home prices and available listings. For outstanding financial options that are suited to your needs, get in touch with Zippy Financial today. Take advantage of this chance to move confidently through the changing market.

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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Why You Never Succeed as Property Investor | Zippy Financial

Here is an interesting fact: did you know that most property investors fail dismally when it comes to using real estate to build wealth?

According to The Conversation, 83 per cent of Australian property investors are small players who own just one or two dwellings. The average landlord is not the rich, greedy, monocle-wearing mega-rich mogul you might have imagined.

But with real estate offering a safe and proven opportunity to make money, why is it that most investors fail to build a successful property empire?

The answer is actually pretty simple – these would-be investing superstars stumble at the first hurdle, because they don’t seek the right help and advice.

They think they can take care of everything themselves – after all, how hard could it be? They have read the property blogs, maybe subscribed to a few newsletters. And let’s not forget Uncle Dean, who has kindly imparted his words of wisdom on how they should approach property investing at their last family BBQ…

How to Invest in Property for Profit

The number one reason why property investors fail is because they don’t get adequate or accurate advice.

In reality, becoming a successful property investor relies on a lot more expertise than what dear old Uncle Dean has to say on the topic. It’s a business and should be approached using your head, not your heart.

You are more likely to have success if you are being guided by experienced, qualified experts who are in the business of helping other investors to profit from property every day, right?

So, how can you make sure you are in the slim percentage of Aussies who build a healthy financial empire out of real estate?

The first step is to nail your financial strategy. Whether that is positive or negative gearing, using the equity in your home to fund an investment or partnering up with a friend or family member to pool your funds and buy a property together, you must have a clear idea of what you want to achieve and how you want to get there.

The good news is you don’t have to figure this out all on your own. By engaging the services of an accredited and experienced property advisor, you can get help in creating a plan that suits your income, budget, risk profile and future goals. This may require a small investment upfront, but when you consider the long-term outcome of financial wealth and prosperity, it is a small price to pay.

Nailing Your Finance and Property Strategy

Getting the financial fundamentals right also means working with an experienced mortgage broker. With access to a myriad of lenders, along with lesser-known products and tips and tricks to help the self-employed and those in unique situations an experienced broker can help you access the most suitable loan products on the market.

Once you have financial ducks in a row in terms of your strategy and your finance, and you know what you can afford to borrow, you can move on to finding the perfect investment property.

Many first-time investors simply look for an inexpensive property that can be cheaply jazzed-up to attract tenants – one that is close enough to schools and public transport and seems to appeal to tenants. Unfortunately, not doing enough homework here can really cost you a lot of money.

The smarter option is to seek the guidance of a reputable buyer’s agent. They know how to identify true investment-grade properties that will deliver on capital growth and rental returns. They understand vacancy rate trends, know which type of properties are likely to be popular in different areas, and can forecast how future population growth and infrastructure spending could impact values and rents.

They also know when you should offer an extra $10-20,000 for the ideal property – and when you should put your auction paddle away and continue the search.

And, a really good buyer’s agent should be able to help you plan out your long-term property investing strategy, taking into the account things like how long you plan on holding the property for, and if it’s going to be a suitable candidate for renovating, subdividing or developing.

Consider this Hypothetical: Marc is a typical representation of a homebuyer who wants to use property as a wealth-creation tool.

Around 8 years ago, he had the opportunity to invest in a three-bedroom family home in Melton, Victoria, in an area popular with renters, for just $300,000.

Lucky for him, he spoke to a buyer’s agent who recommended a smaller townhouse in the suburb of Vermont instead. This property was $150,000 more, so he paid $450k. However, it attracted a much higher rental return, thanks to the area and its proximity to a popular high school.

Since then, house prices in Melton have risen to a median of $385,000 – but in Vermont, that townhouse is now valued at almost $700,000. Marc has been able to access that equity to grow his portfolio to include two additional properties and set himself up for a comfortable retirement. Imagine how much he’d be kicking right now if he hadn’t engaged appropriate experts to help put him on this path?

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 or needs before making any decisions based on this information.

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

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What is the main focus of the article?

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

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

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

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