95% Loans…An update.

May 21, 2019

This is an area of lending that is about to change markedly, and it impacts on how much money you need to buy your first home. (in a good way!!)

This is where we are right now – 95% loans are all about the treatment of Mortgage Insurance. (A one-off premium to protect the lender’s position, approximately 3.5%)

1. Lenders require YOU to pay all of the mortgage insurance (MI) from your money – so their loans are still 95%.

Costs vary from state to state – but let’s look at a $500k purchase in Qld where a first home buyer pays no stamp duty; Costs will then be approx. $2,500 and are inclusive of things like Solicitor, settlement and government fees. (I can explain these all in more detail, for your particular circumstance, if you “Ask Alan”).

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Housing policy dissected

May 2, 2019

Here are three truths;

1.     If you own a house, then you hope prices go up.

2.     If you are in the market to buy a house, then you want prices to come down.

3.     5 minutes after you buy that house, you hope prices go up.

Hence – everyone who owns or hopes to own a house hopes that prices go up.

Before I start – let’s make sure we acknowledge the needs of the five main age groups in Australia;

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Two Rate Cuts “Fully Priced In”

May 1, 2019

According to Macquarie Bank chief economist two rate cuts are fully priced into the current market. (The Australian p 17 Apr 30th)

  • What does this mean?
  • Why is it happening?
  • What should you do? 

Fixed interest rates typically indicate where Variable interest rates are headed – they are the “canary in the coal mine”.

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Investment Guidelines: Negative Gearing and Politics

March 28, 2019

In the upcoming election there is a policy divide between the parties over “negative gearing” which  if one side wins, will only be able to be applied to brand new property.

To help you make sense of this let’s look at the whole issue –  what Negative Gearing is and why it matters.

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Property, Still the Pot of Gold at the End of The Rainbow

March 28, 2019

Property is still the Pot of Gold at the end of the Rainbow. 

With all the current negative talk about property, buyers have left the market. Listings are at all-time highs. This is what makes a Buyers’ Market.

Better still, Markets are now pricing in a rate cut in the next 12 months. In fact, Bill Evans (Westpac Chief Economist) goes further, and anticipates two rate cuts this year in August and November (Bill Evans, AFR Tuesday 04 March 2019). Watch Bill Evans’ comments in the video below.

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Construction 2: The Real Renovation Remuneration Story

March 27, 2019

For the second blog in my Construction series, I look at the simple home renovation.

I have helped many of my clients turn the simple renovation into two things;

  • The home of their dreams
  • The foundation of a property portfolio

These are their real renovation stories (used with permission, thank you to all who have let me share your inspiring stories!)

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You should be outraged…

February 27, 2019

You need to be outraged … the Royal Commission WILL affect you. 

The banks have got away with it again, and you, the consumer, are going to made to pay – through your home loan.

 This is how;

On a $300k home, the bank makes $6,000 in clear profit the first year alone. and every year to follow. 

On a $500k home loan, that’s $10,000 clear profit EACH YEAR.

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A Buyers Market

January 10, 2019

Most people misunderstand badly the term “buyers’ market” and hence never take advantage of one.

A buyers’ market is one where no-one is buying.

Consequently, it is a terrible time to sell.

In a buyers’ market there are more sellers than buyers, buyers can take their time, negotiate price and/or conditions to suit themselves and if a seller doesn’t “meet” their demands then the buyer moves on to a seller who will.

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Lots of Noise but Very Little Clarity

November 22, 2018

Who wouldn’t want house price to go down? – I’ll tell you who – that would be EVERY person who owns a house.

One side of politics at the moment sets the country against itself – the politics supposedly of the “haves” and the “have-nots”. What a sad way to view life and aspiration.

Here is a truth – EVERY person who buys a house (be it their first or their tenth) wants house price to be down when they buy.

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Two Significant Threats

September 27, 2018

Two Significant Threats to YOU Personally

Number 1. Identity theft and fraud are now prevalent in ways not seen before.

Someone uses your name and date of birth and drivers licence / passport details to fraudulently obtain a $20k personal loan or credit card from an unwitting lender. In the process that person changes your address. You find out some months later when contacted by a collections agency because you are in default. Your Credit File is of course, by now, ruined.

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