Is a small budget holding you back from property investment? Think again!

You might be surprised to learn that you don’t need a hefty bank balance to dive into the property market. Let’s explore how you could make this dream a reality.

1. Unlock Your Home’s Potential Through Equity

What’s Equity? It’s the difference between your property’s market value and what you owe the bank. For instance, if your home is worth $800,000 and you owe $500,000, you have $300,000 in equity.How Can It Help? If the value of your home has appreciated or you’ve made significant progress on your mortgage payments, you could be sitting on a hidden treasure. By refinancing, you can tap into this equity, providing you with the means to invest without depleting your savings.

2. Think Beyond the City

Why Regional? If city investments are stretching your budget, consider looking into regional areas. Many of these zones have recently surpassed major cities in performance, especially when it comes to vacancies, rental rates, and property values.Hotspots to Consider in 2023: Refer to the latest “Top 10 Affordable Regional Areas 2023” report for inspiration. This comprehensive study, based on affordability, property trends, investment considerations, project development, and unemployment rates, highlighted the following standout areas:

• Queensland: The Whitsunday Region, Mackay Regional Council, The Charters Towers Region.
• New South Wales: Federation Council, Dubbo Regional Council, The City of Lithgow.
• Victoria: City of Greater Bendigo, City of Greater Shepparton, City of Ballarat.

• Tasmania: Central Coast Council.

3. Two Heads Are Better Than One

Joint Ventures: Consider teaming up with someone. It could be a friend, family member, or another investor. Pooling resources can make property investment more accessible.Remember: This is a big decision. Always get legal advice to ensure everyone’s on the same page.

4. The Off-the-Plan Route

How It Works: You sign a contract, pay a deposit (often just 10%), and settle the balance once the property’s built. This gives you time to get your finances in order.Pros: Lock in today’s price, even if property values soar during construction.Cons: There are risks, like potential drops in property value. Always research thoroughly.

Ready to Dive In?

Exploring finance options is a crucial step. Reach out to us! We’re here to guide you through the maze and help you align with your investment objectives.

Spring has almost sprung and in the property world, it’s an exciting time of year.

So, what will this year’s spring selling season look like?Property prices are still on the rise in many markets, despite the Reserve Bank of Australia’s aggressive interest rate hikes since May 2022. Property prices rose 0.7 per cent in July – the fifth straight month of gains.Listings are also on the rise but remain below 2022 levels. If you’re a prospective buyer, you’ll need to be ready to pounce when you find a bargain this spring. Here are our tips for being ready.

Tip 1: Do your research 

The property market is constantly changing. If you’re looking to buy, you’ll want to make sure you have the latest information at your fingertips so that you’re confident when making an offer.We can provide a range of reports to help you cover your bases. Get suburb reports with all the info you need to narrow down your property search. Access property reports with valuation ranges, recent sales data and more.

Tip 2: Get your finances in order 

If you do find a bargain, you’ll want to be ready to jump on it. Speak to us about organising pre-approval on your finance sooner rather than later.Pre-approval means a bank has agreed, in principle, to lend you a certain amount of money.Having pre-approval gives you confidence during price negotiations with vendors. It may also give you an edge over other buyers without pre-approved finance. 

Tip 3: Find out why the vendor is selling 

Understanding the vendor’s motivation to sell may give you an upper hand during negotiations.What type of settlement terms and deposit will be most attractive to them? They may be moving interstate, or need liquidity fast, in which case they may drop their price for a shorter settlement. Maybe they need an extra-long settlement while they find somewhere else to live.  Or perhaps a larger deposit would make you more favourable compared to other buyers? Ask the real estate agent why the vendor is selling and use the information as a negotiation tool. 

Tip 4: Rally your team

If you’re planning a spring property purchase, start thinking about which professionals you want on your team.You’ll need a reputable conveyancer or solicitor to take care of the legalities for you.In addition, you’ll want to line up building and pest inspectors to make sure the property is free of unwanted surprises like termites and structural defects. If they do discover anything untoward, remember you can use this as ammo during price negotiations.As your finance broker, we’ll compare the market and suggest a competitive home loan that meets your specific financial situation and goals.

Get in touch

Property prices are on the rise in many markets, but there are plenty of opportunities out there for savvy buyers.Get in touch today to organise pre-approval on your finance and be ready to buy your first home, next home or an investment property this spring.

With so much movement on interest rates lately and roughly half of all fixed-rate loans expiring this year, refinancing is on many people’s radars.

It’s no wonder. Some of those facing their fixed rate expiry are bracing for a 63 per cent increase in their monthly mortgage repayments.If you fall into this category, you may be wondering how much it costs to refinance. Let us break down a few of the typical costs for you.

Costs to consider when refinancing

1. Mortgage application fee

If you’re switching lenders, you will likely have to pay a mortgage application or establishment fee. This covers the cost to your new lender of processing your application.This upfront cost usually ranges from $200 to $1000, depending on the lender and the type of loan. It may or may not include a valuation fee.

2. Loan discharge fee

Saying farewell to your current lender will likely result in a discharge fee for the administrative costs associated with terminating your mortgage.Often loan discharge fees are around $200-$400. However, they can be up to $1000.

3. Property valuation fee

Your new lender may require a valuation to be done when assessing your refinancing application. The cost largely depends on the lender and the location of the property – expect to pay more for rural properties.Valuation fees may range from $200 to $600 in cities, and $600 to $1000 in rural areas. Some lenders offer free property valuations.

4. Break fees

If you are on a fixed rate loan, you may have to pay break fees to get out of it early. Break costs can be expensive and complicated to calculate.The easiest way to understand your break costs is to ask your current lender for a rundown.

5. Settlement fee

Remember paying a settlement fee when you originally took out your loan? You’ll be up for that again if you decide to refinance.Settlement fees are paid to the new lender to settle the loan and typically range from $100 to $400.

6. Mortgage registration fees

The land registry in your state or territory will charge a mortgage registration fee to register your mortgage on the title record for the property.The cost could be anywhere from $120 to $210.

7. Exit fees

If your existing loan was taken out before July 1, 2011, you may be up for early exit fees with your lender. Check with them directly.

How much refinancing can save you

While all of the costs mentioned above may seem overwhelming, it’s important to consider the long-term benefits of refinancing.How much you could save by refinancing depends on the size of your mortgage, how many years you have left on the loan, how much lower the new interest rate is and whether it has interest-saving features.

Like to discuss your options?

As your finance broker, we can help you decide whether refinancing is the right move for you in the current economic climate. We can help you weigh up the costs versus the benefits of refinancing and explain whether a different loan could better suit your financial situation and goals. Get in touch today.

Spring is just around the corner and that means the busiest period for the real estate industry is almost here.

So, what’s been happening in the property world of late?The Reserve Bank of Australia (RBA) left the cash rate on hold again this month at 4.1 per cent. Meanwhile, Australia’s housing values are still on the rise, though the pace of growth appears to be easing.If a spring property purchase is on the cards, speak to us early about pre-approval on your finance.

Interest rate news

At its August meeting, the RBA left the cash rate unchanged at 4.1 per cent.Inflation is coming down, but at 6 per cent, it’s still above the RBA’s target range of 2-3 per cent.“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” outgoing RBA governor Philip Lowe said.“In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month.“This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook.”Michele Bullock is set to take over as governor when Philip Lowe’s term expires on September 17.With more change looming, it’s a good idea to review your home loan, especially if it’s been more than two years.

Home value movements

Housing values rose 0.7% in July – the fifth consecutive month of housing value recovery.Brisbane and Adelaide led the way, with housing values up 1.4% across both cities.Canberra was the only capital city to record a decline in values in July, down -0.1%, while values remained unchanged in Hobart.Meanwhile, regional housing values crept up 0.2%.

With more properties expected to come onto the market in coming weeks, it’s an exciting time of year for aspiring homeowners.If you’re one of them, speak to us about getting your finance pre-approved.We can explain your borrowing power and which home loan product may suit your needs.

Get in touch today.

Owning a home is a dream that many of us share, and finding the right financial partner to help us achieve that dream is crucial. With numerous options available in the market, it’s essential to choose a home loan provider that offers competitive rates, flexible terms, and exceptional service. In this review, we’ll delve into the world of home loans offered via Xclusive Money and explore the features that make them stand out from the crowd.

Xclusive Money has established itself as a reputable financial institution known for its customer-centric approach. When it comes to home loans, Xclusive Money aims to provide a seamless and hassle-free experience for prospective homeowners

Key Features of Xclusive Money’s Home Loan Review:

1. Competitive Interest Rates: One of the most significant factors to consider when choosing a home loan is the interest rate. Xclusive Money researches competitive interest rates that are designed to save you money over the long term. Their commitment to transparency ensures that you understand the terms and rates associated with your loan.
2. Flexible Loan Terms: Xclusive Money understands that every individual’s financial situation is unique. To accommodate this, they offer flexible loan terms, allowing you to choose a repayment plan that suits your budget and lifestyle. This flexibility ensures that your home loan journey is comfortable and tailored to your needs.
3. Quick and Efficient Application Process: Applying for a home loan can be a daunting task, but Xclusive Money simplifies the process. Their user-friendly online application platform streamlines the application, reducing the time it takes to get the financing you need for your dream home.
4. Diverse Range of Loan Products: Xclusive Money recognizes that different homeowners have different needs. Whether you’re a first-time homebuyer, looking to refinance, or interested in an investment property, we have a diverse range of lender loan products to cater to your specific requirements.
5. Personalized Customer Support: The team at Xclusive Money understands that obtaining a home loan can be a complex process. That’s why they offer personalized customer support every step of the way. Whether you have questions about eligibility, terms, or the application process, their knowledgeable representatives are there to guide you.

Choosing a home loan is a significant financial decision that can shape your future. Xclusive Money’s home loan reviews stand out for their research on competitive rates, flexible terms, and exceptional customer service. Their commitment to making the home loan process smooth and efficient reflects their dedication to helping individuals turn their homeownership dreams into reality.

Whether you’re a first-time homebuyer, a seasoned homeowner looking to refinance, or an investor seeking the perfect loan for your next property, Xclusive Money are worth considering. Their personalized approach, diverse loan products, and dedication to customer success make them a valuable partner in your journey toward owning your dream home.