Need to Claim the HomeBuilder Grant?

6 Points to consider before you apply for the HomeBuilder Grant

 

New Homes

New Homes

As you may already know, the Federal Government recently announced a construction stimulus package, the HomeBuilder Grant. The idea is to assist the residential construction market by encouraging the build of new homes and renovations.

Australian citizens who are looking to build a new home (including first home buyers) or renovate their principal residence can receive a grant of $25,000, provided the eligibility criteria are met.

Click Here to apply for your New Home and take advantage of this once in a lifetime opportunity!

If you consider building a new home, or renovate your existing home and want to take advantage of the HomeBuilder Grant, there are a few factors to take into consideration if you plan to apply for the Grant.

  Points to consider:

Great Tips For First Home Buyers

Great Tips For First Home Buyers

  1. Be organised and know your timeline:

It is expected that there will be some administration work involved between the time that you express your interest in a block of land and signing the contracts. This process can take up to 6 weeks, depending on each individual situation.

According to the HomeBuilder Fact sheet, construction must start within three months of the date your contract is being signed with the builder. Keep in mind that a maximum extension of an additional three months may apply on a case by case basis. However, the relevant Revenue Office must be satisfied that the delay in the start of construction is due to unforeseen circumstances, not being in the control of the parties to the contract.  

If you want your application to go as smoothly as possible, we advise you to start doing your research regarding your new home and get in touch with a good builder as soon as possible.

RBA Interest Rate

Will you save with the new Low Interest Rates?

  1. Determine what your budget is:

Purchasing a property may be one of the biggest financial commitments you will make throughout your life. Even if it’s not your first property you want to buy, you’ll have important decisions to make.

To take one step closer to becoming a property owner and make an informed decision, speak to a good mortgage broker or lender first to determine what your budget is. Knowing what your borrowing capacity is, will prevent disappointment and save you time.

 Having a pre-approval not only gives you an idea of what your budget is, but it also makes it easier and faster for you to buy your home. Let me give you an example… There is more than one buyer interested in the same home. The person who has the pre-approval ready will be the one that purchases the property on that day. Let that person be you, and not one of the others.

A good mortgage broker will also advise you regarding other existing Government Grants and Schemes that you may qualify for on top of the HomeBuilder Grant. Engaging in a discussion with them will assist you in choosing the loan that is right for your individual circumstances.

Remember that pre-approval of finance is:

  • Free
  • Obligation-free and
  • Valid for three months
  1. Be aware of additional costs:

Keep in mind that not all builders offer Fixed Price, Turn-Key solutions. Some builders may offer house and land packages at a very attractive price but the site costs may be excluded in the price. Some builders exclude several elements in the original price that is advertised.

Other costs that should be taken into consideration as well:

  • Moving home. You may have to pay the movers or hire a truck if you want to do it yourself.
  • Stamp duty. If you are a first time home buyer, you may want to check what incentives and grants are available in your state.
  • Legal fees. These are charged by your solicitor or conveyancer to carry out the legal work involved in purchasing real estate.
  • Loan application costs may be: the loan application fee; Lender’s property valuation fees; Lenders Mortgage Insurance (unless you can put down a deposit of 20% or more)
  • Property transfer fee – a State Government charge to register the transfer of title of the property from one person to another.
  • Mortgage registration fee – an administrative charge imposed by the Land Titles Office or equivalent for registering the lender’s mortgage on the title record for the property.
  • Homebuilding and contents insurance – this is important to protect you financially if your home or belongings are damaged by fire, natural disaster or you experience loss through burglary. Lenders may ask that your property is insured because they have a vested interest in it.
  • Mortgage protection insurance – this takes care of part (or all) of your mortgage repayments if you are injured or become ill, leaving you unable to work, or if you pass away. Your Costs may vary according to the extent of the cover you need.

Low Interest Rates

  1. Price of your Build or renovation:

Remember that there is a maximum property price that will be taken into consideration. If you’re going to buy a house and land package, the maximum value of the property (house included) is $750,000 and the price of the renovation is between $150,000 and $750,000. The maximum value of the property (for the renovation) is $1,500,000.

Regarding a house and land package: Don’t get too caught up in the advertised price of the package, since (as mentioned before) some builders exclude some elements from the price.

Remember that the display homes are designed to present the best that a builder can offer and it’s important to evaluate the list of inclusions that are offered. Remember that each builder may offer different standard inclusions and you should be able to compare them.

It may be a good idea to negotiate a fixed price with the builder. If you’re not sure how to do that, we may be able to help. All the packages that are available through Buy Real Estate Australia, are Fixed Price, Turn-Key solutions with quality inclusions.

That means that all the inclusions are listed before you sign the contract. And after signing all the documents, you can sit back and relax. Everything will be taken care of for you and you’ll be kept up to date as the building of your house progresses…. It’s that simple. And you’ll have no surprises along the way.

Apart from the quality inclusions from the builders, we’ve decided to add additional surprise features to the deal, that’ll actually save you money. Please inquire about these, as we tailor them to the specific needs of each individual.

New Home

Now may be a good time to buy a new house in South East Queensland

  1. Who should your builder be?

In order to apply for the HomeBuilder Grant, you are allowed to only engage in a reputable, licensed builder. Whether you’ll be building a new home or doing a renovation, you may not do it yourself as an owner-builder. Also, the builder that you engage in, may not be a family member, even if he is a licensed builder.

And remember…. don’t rush! Make sure that you are financially ready.

However, if you are ready, this is a great opportunity to take advantage of the HomeBuilder grant to ad instant equity in your home.

  1. Access other Government Incentives:

If you are a First Time Home Buyer, you will be eligible to take advantage of the First Home Buyer Grant and/or incentive in your state or territory as well, in addition to the HomeBuilder Grant.

Want to take advantage of this grant(s) and buy a new property?

With the current low-interest rates, now is the perfect time!

Feel free to call us on 0428 042 555 or click HERE to get a callback.

 

Advantage of Buying a New Home

Why should you rather buy a

New Home

Instead of an existing home?

There may be a number of reasons why buying a new home is better than buying an existing home.

Yet one reason stands out above the rest….Energy-Efficiency!

The second reason is that nobody lived in the property before you. That by itself is a positive point. Especially in the current situation with the coronavirus outbreak!

Advantage of Buying a New Home

The number one advantage of buying a new home is the Energy Efficiency rating! Want to save on your utility bill and rather live in a home with great Energy Efficiency Rating? Click HERE to find out how.

 

New Home

An advantage of a New Home is the good Energy Efficiency Rating

 

According to the University of Melbourne, “New research finds that people are willing to pay more for energy-efficient housing”

The research shows that buyers and renters are also prepared to pay a premium for energy efficiency.

In other words, whether you are an owner-occupier who wants to buy a new home or an investor, you will have an advantage, since your new home will have at least a 6 Star energy rating. That is what is under the building code.

Nicole Engwirda from the University of Melbourne wrote: ‘A new study has analysed tens of thousands of property transactions over five years from 2011-16 in the Australian Capital Territory, where it is mandatory to disclose the energy efficiency rating (EER) when selling a home.

The analysis, which factored in other characteristics that drive pricing, found that generally the higher the rating, the higher the price or rent.

University of Melbourne property researcher Dr. Georgia Warren-Myers says the results are evidence EERs carry weight with buyers and renters and provide a clear market signal for builders and owners to install more energy-efficient systems.

“By providing a mandatory disclosure program Australia wide, decision-making by owners, occupiers and landlords will drive more energy-efficient dwellings, potentially reducing carbon emissions associated with housing,” says Dr. Warren-Myers, who conducted the research with the University of Cambridge visiting fellow Dr. Franz Fuerst.

Generally, they found prices rise as the star rating increases. Compared with three-star properties, properties rated five and six attracted sale premiums of 2 and 2.4 percent respectively. But properties that went further on energy efficiency to gain a seven-star rating attracted heftier premiums of up to 9.4 percent.

Turn Key House and Land

Turn Key House and Land with good Energy Efficiency Rating

 

The ACT is the only Australian State or Territory to introduce mandatory rating disclosure for all dwellings, while nationally only new dwellings need a rating – a minimum six-star rating out of a possible 10. In the ACT these ratings must be displayed during any sales process and there are fines for breaches. The system is limited in the rental market, where Dr. Warren-Myers points to loopholes that mean landlords can, and do, avoid disclosing an EER – such as not obtaining a rating to disclose.

“The data shows people are valuing energy efficiency and making decisions based on the energy efficiency portrayed in these ratings. It has become one of the factors that people consider when they’re looking. They see the number of bedrooms, the number of bathrooms, carparks – and they see the energy star rating,” she says.

Dr. Warren-Myers says the jump in prices for seven-star properties suggests homeowners recognise the value of going above the minimum six-star standard for new homes.

“Homeowners know that new homes meet a minimum six-star level, and want to be better than the standard,” she says. “They’re going to that seven-star mark to differentiate themselves from that baseline.

Interestingly, properties with eight stars only earned a 2.8 percent premium, which she says may reflect the small sample size. Only 0.3 percent of the 31,000 sold properties covered in the study had eight-star ratings.

At the bottom end of the ratings, zero-star and one-star rated properties sold at a 2.8 and 2.4 percent discount to three-star rated properties.

In the rental market, five and six-star properties rented at a 3.5 and 3.6 percent premium respectively compared to three-star properties. However, the gains flattened at seven and eight stars with premiums of 2.6 percent and 3.5 percent respectively.

But because of the loopholes in the legislation, more than half the 67,600 rental properties analysed in the study hadn’t disclosed an efficiency rating. And it is likely to be low rated properties that don’t have an energy rating, says Dr. Warren-Myers.

For tenants, who have limited capacity to make changes to a property, it means having less information to make rental decisions and the potential to be stuck with a ‘lemon’.

“They can effectively be penalised, from the perspective of household bills, but also because they may end up still paying a standard rental price for a property that doesn’t actually perform,” says Dr. Warren-Myers.

She says this lack of transparency needs to be addressed by closing the current loopholes on rental properties in the ACT. More broadly, Dr. Warren-Myers argues, the results in the ACT support the rollout of a rating disclosure system nationally as a way to encourage a broader take up of energy efficiency in existing properties, particularly in the rental market where landlords lack incentives. This is because tenants, rather than landlords, have to pay for energy costs.

But as this research demonstrates, a boost in rental income and resale value can be offset against the initial outlay of an efficiency upgrade.

“If we want to really drive energy efficiency in homes and have a better product in the market, we need to look at applying this Australia-wide,” says Dr. Warren-Myers.

“In the new construction sector, under the building code, we have a mandatory minimum requirement, which is a six-star home. But there is nothing that existing homeowners, in the rest of Australia, can actually do to understand what the energy efficiency of their home is at this point in time.”

“We already have a national rating system mandatory at the new build level. By applying that to the rest of Australia for existing buildings, at least we can start comparing all buildings on the same basis.”’

It is all good to say that energy efficiency should be applied to older buildings….we know what the cost to that will be. It is way better to rather buy a new home and be sure that it has already the minimum requirement of a 6 Star energy rating.

If you are interested in buying a home with at least a 6-star energy rating, then look no further. We can now offer you a home with even a 7-star energy rating.

Imagine the savings on your power bill….

To take advantage of this offer, Click HERE to Apply.

 

Interest Rates in Australia

HOW WILL THE CORONA VIRUS OUTBREAK IMPACT  INTEREST RATES IN AUSTRALIA?

Buy Real Estate Australia

In the last few weeks, increased expectations of an Australian Recession had been seen, a major slowdown in everyday business activity, not to mention the trillions of dollars wiped off the global share markets.

There has been a lot of speculation over the impact of the Coronavirus on Australian Residential Property and the interest rates in Australia.  Addressing the impact of the virus on the Australian economy, RBA deputy governor Guy Debelle recently made a statement that is reassuring regarding the current situation.

The Reserve Bank has anticipated that low interest rates, the revival of residential construction and infrastructure spending will come together to support the Australian economy.

“The effect of the virus will come to an end at some point,” Debelle said while addressing the Australian Financial Review Business Summit on Wednesday, 11th of March 2020.

RBA deputy governor, Guy Debelle recently spoke about the Australian government’s plan to offer jobs and support small scale businesses that would have an overall positive impact on the economy in the coming times. Furthermore, the government is still working on forecasting the impact of the disruptions in supply chains on the retail and construction industry.

The RBA has confidence in the Australian banking system, as it shows a promising liquidity position in the current times. The Australian banks have already managed to raise a notable sum of wholesale funding. Therefore, the Australian banks are prepared to face a period that may be marked by disruptions in the chains of demand and supply. Currently, the RBA hasn’t witnessed any pressure in the day to day operations of Australian banks.

Interest rates in Australia

Today, the 19th of March 2020, the RBA has reduced the cash rate to a new record low of 0.25%.

Since June 2019, the cash rate has been reduced by 100 basis points, and at present, it is at a notable 0.25% low. RBA deputy governor, Guy Debelle also talks about financial markets and how there has been a marked increase in “risk aversion and uncertainty”.

This is something that is also likely to make it hard for markets to change and fix new prices for financial assets. According to Debelle, the Coronavirus outbreak is bound to have a significant impact on the Australian economy, but for now, one cannot anticipate exactly how big the impact will be. In the meantime, one can only estimate the direct impact of the virus outbreak on different industries for the March quarter.

Like Australia, there are many world nations that have experienced a reduction in policy interest rates. These interest rates are also expected to decrease further in many of these countries. Similarly, there has also been a historic decline in government bond yields. But, as compared to the US, Australian government bond yields have not noticed as much decline.Australian Business Review

 For now, the RBA does not see any signs of disruptions in the exports of goods such as iron ore and coal. As a result, the prices of iron ore and coal are intact and have not been impacted by the virus outbreak on a global scale.

The RBA is hopeful that the Australian government’s fiscal and monetary policy can come together to help overcome a struggling phase for the economy.  Once the virus outbreak is contained, this will help Australia’s economy to thrive once again.

The RBA looks at the Coronavirus outbreak as an alarming factor that has the potential to disrupt the chains of demand and supply. This is why the RBA is looking for solutions in the monetary policy that can promise a more than usual high demand to meet the crisis.

Interest Rates in Australia

Another way in which monetary policy can help tackle the impact of the virus outbreak on the economy is through its influence on the exchange rate. This strategy can moderate the impact of the virus outbreak on external demand which then can also be controlled and mitigated.

Apart from the monetary policy, a drive to lower the interest rates by RBA will also prove as a possible measure to deal with the impact of the virus outbreak on the Australian economy. There is no doubt about the fact that the low interest rates in Australia will offer a sigh of relief for businesses with debt, along with providing more disposable revenue to the domestic sector.

The Reserve Bank is of the opinion that the Coronavirus outbreak will surely weaken the economy on a global scale, especially in the first quarter of this year. The two sectors in the Australian economy that will be directly hit in the March quarter of 2020 will be tourism and education.

Australian Business Review

But, for now, one cannot clearly ascertain the impact of the virus outbreak beyond this quarter. After the March quarter has passed, one can expect a lot of significant changes not just in the Australian economy, but also in the economy on a global scale.

Source: RBA

Make sure to pay The Best Home Loan Rates

With the decision by the Reserve Bank of Australia to reduce the official cash rate to 0.5, the banks are looking at making sure they pass on the benefit to their customers.

It will be in your best interest to compare the different home loan rates that the lenders offer to make sure that you get the best deal available.

The best way to compare home loans is to ask for a key facts sheet from different lenders. The key facts sheet will give you the information you need, in a set format so you can directly compare features, interest rates, and fees.

Some of the different home loans available:

Offset Facility

OR

Redraw Facility

Which is the smartest option for Home Loans?

The reality is, most borrowers will ask for a redraw or offset facility when they apply for their home loan, even if they don’t fully understand the benefit that is applied. It is important that you know what the difference is before you apply.

Best home loan rates

How to pay The Best home loan rates

Some lenders charge a fee to maintain an Offset account and some lenders have restrictions on the minimum amount of money you can redraw from your home loan or charge a fee each time you need to access funds.

Want to buy a home and not sure where to find the

Best Home Loan Rates?

Click HERE to get assistance NOW

Let’s look at simplified versions of how these two facilities work and how the benefit is applied to your home in each instance. Note, a redraw facility sits within a home loan whereas the offset account is a linked external account.

Redraw Facility

Having a redraw facility allows you to pay extra money into your loan that you can take out (or redraw) later if you need it.

The extra money you pay into the loan reduces your loan balance which reduces the interest you pay.  Your loan balance will still reduce each month according to the terms of your loan.

Credit providers may impose conditions or a fee to redraw funds. You should check what conditions and charges apply to your loan.

Offset Facility

This is a savings or transaction account linked to your home loan. Your account balance is taken off the amount you owe on your home loan, reducing the amount of interest you pay. You can use an offset account for savings or as an everyday transaction account.

For example, if you have a home loan of $500,000 and a balance of $20,000 in your offset account, you only pay interest on $480,000.

If the balance of your offset account is low, the additional costs may outweigh any benefits you get from having it. Be realistic when calculating the expected benefit an offset account may give you.

Now, let’s look at the benefits these two options offer. As benefits revolve about taxation, Ian Wood of Value Beyond explains below the advantage of having an offset account over a redraw facility.

The ATO’s approach to the deductibility of interest is to look at the purpose for which the money was borrowed. If you take out a loan for an investment property or for shares that earn income, then the interest is deductible. However, this general rule will change when the loan is paid down, and then the money is borrowed back out of the loan for a new purpose. If the additional borrowing back out of the loan is not used for a deductible purpose e.g. bat, holiday, new car, etc. then not all of the interest will be deductible because it is no longer the case that all of the borrowed money was used for a deductible purpose.

Having an offset account is a different situation. When you pull money out of an offset account, the original loan amount has not changed, and therefore the deductibility of the interest on that loan will not change either. The offset is a transaction account, so when you draw money out of the offset account it is not coming out the loan account, so the purpose of the loan hasn’t changed.

Example

Redraw Facility

You purchase an investment property for $500,000 and borrow $500,000 interest only. Over the course of 5 years, you make additional repayments of $50,000 so that the loan balance is now $450,000. You decide to redraw the $50,000 equity and buy a boat. The loan now is only 90% deductible and 10% non-deductible, as $50,000 of the loan balance was used for a non-deductible purpose.

Offset Facility

You purchase an investment property for $500,000 and borrow $500,000 interest only. Over the course of 5 years, you save 50,000 in an offset account. The actual balance of the loan is still $500,000, however, the net balance of the loan for interest calculation is $450,000 ($500,000 -$50,000). You decide to redraw the $50,000 equity and buy a boat. The interest on the $500,000 loan is still 100% deductible as that money has only been used to purchase the investment property. The cash used from the offset to buy the boat has not changed the purpose of the loan at all and therefore doesn’t affect the deductibility of the loan account.

From the above examples, you can see that having an offset account gives you a distinct advantage when it’s linked to your investment loan. There is advantage in having an offset account against your owner-occupier home loan as well if you intend to upgrade to a new home and convert the existing to an investment loan sometime in the future as it will allow you to reduce the interest applicable on your loan without reducing the balance while it’s classed as owner-occupier loan.

When it comes to getting value out of your loan structure and to ensure that you are awarded quality direction, an experienced lender is irreplaceable. And if you are paying to use your redraw facility or an offset account fee with your bank, I suggest moving to one that gives you better value.

If you are interested in buying a home and not sure where to find the Best Home Loan Rates?

Click HERE to get assistance NOW

 

First Home Owners Grant

First Home Owners Grant

First home owners grant

First home owners grant

General Information about the First Home Owners Grant: 

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on homeownership.

It is a national scheme funded by the states and territories and administered under their own legislation. 

Under the scheme, a one-off grant is payable to first homeowners that satisfy all the eligibility criteria as outlined by the governing state. Some states offer other incentives as well.

Settling on the choice to buy a home is an important step in your life. Therefore, as a responsible and diligent first time home buyer, you should have carefully evaluated your spending limits and even consider what options you might have regarding changes you need to make. 

Is it safe to say that it is your first time that you want to buy Real Estate?

Click HERE to find out how we can help you find your first home, use the grant as part of your deposit and help save you money in the long run.

More Information:

Do you want to pursue your dream of owning your own home sooner? Then you may want to find out if you are eligible for the First Home Owners Grant.

CLICK HERE if you need more information. You will have the option to choose the state you want to live in and get first-hand information.

 

Stop Renting

Are you ready to stop renting and start living in your own home?

First Time Home Owner

We have put together a list of answers to the most frequently asked questions on the First time home buyer grant:

 

  • I’m buying a home in Australia but I already own property outside Australia, does that mean I don’t qualify for the grant?

You can be eligible for the grant provided you have not owned property in Australia before.

  • What happens if I move out of my home in the first 12 months?

If you have lived in your home for a continuous period of six months, you may keep the grant, but if you move out before this time, you will be required to repay the grant.

  • I inherited a property. Can I claim the First Home Owner Grant for that?

No. You must be a buyer or builder of the property. If you received it as a gift or inheritance you are not eligible for the grant.

  • I am buying an existing home. Does that qualify me for the grant or does it have to be a new home?

This depends on the state, with many now limiting the grant to purchasers of new or substantially renovated homes.

  • I am buying the property jointly with a friend. Do we both have to be eligible?

If you are buying the property in conjunction with another person, you must both meet the First Home Owners Grant criteria for the grant to be applicable.

  • My partner and I are buying the property jointly and neither of us has owned a property before. Do we each get a grant?

No. A single grant is payable per property transaction not per person.

  • Does my income affect the grant and is the grant taxed?

No, the grant is not means-tested and you do not have to pay tax on it.

  • What happens if I move out of my first home in the first 12 months?

If you have lived in your home for a continuous period of six months, you may keep the grant, but if you move out before this time, you will be required to repay the grant.

Are you ready to buy your first home? Then please CLICK HERE to get in touch with us.

 

 

Happy Long-Term Tenants

How to make sure you have

Happy, Long-Term Tenants

The only thing a landlord ever wish for, is to have happy long-term tenants who are respectful to the property and pay on time. It is not so easy to find tenants who are respectful, cautious and who want to stay in the property a long period of time.

By being a bit more creative in your approach to managing your investment property, you may ensure that your tenants are happy and comfortable in their rental home. Remember, a happy tenant usually is a tenant who pays on time. And that makes a landlord very happy as well.

Long-term Tenants

Make sure you have Happy long-term Tenants

Keep the Property Maintained

Your property may be an investment to you, but for the tenants, it is their home. This is where they come home to after work to relax and this is where they spend most of their time with their family.

That is why it is important to keep the property maintained. Before any new tenants move in, go through the property to see if the walls need to be re-painted or if any other repairs need to be done. This is also the time to decide on any updates or renovations that may make the property more desirable.

Just because you are not the person living there, doesn’t mean you shouldn’t be mindful of the enjoyment of the property.

What about Incentives?

Happy Tenants

Throw in an incentive may result in very Happy Tenants

Everyone loves a good deal, and tenants are no exception. You can make the tenant feel as if you are rewarding them or giving them a break by offering small incentives. Incentives can include:

  • A fee for utilities. While you should make sure that you won’t be losing out financially by setting a single amount for utilities year-round, it makes it easier for the tenant to know exactly what they will be paying each month.
  • Have Solar Panels installed. The latest trend is to have solar panels installed and have it connected to the grid and get paid for the power. Your tenant, on the other hand, get discounted on their power bill.
  • Offering a small discount if the tenant provides post-dated checks for a year at a time. Rewarding your tenant for essentially providing a year’s worth of rent at a time is a great way to ensure that there are no payment issues, and your tenant will feel like they happened on some good luck.
  • Giving the first month free. It can be hard for some tenants to provide a damage deposit as well as the first month’s rent. By giving a tenant the first month free, they only have to come up with a damage deposit, which allows them to budget for the next month’s rent payment. You’ll lose out on a rent payment, but it increases the chances of filling your property more quickly.

Have a Lease Agreement in Place

Happy long-term tenants

Every Landlord wants Happy Long-term Tenants

Create a clear Lease Agreement in which it is stipulated what is included in the lease. The General Tenancy Agreement (Form 18a) can be downloaded from the RTA and there is a section on how to complete the form as well.

Don’t just hand it to your tenant and except them to read it—go over it with them carefully. Make sure that they understand the allowances and restrictions of the property, as well as what is required of them.

By discussing the lease and what it includes, you can avoid future problems. Your tenant will appreciate that you took the time to explain the lease, and they will have a clear understanding of what they may or may not do while renting the property.

Be kind and answer any questions that they may have. Although you may understand all of the terms and conditions, someone who has never rented property before, may not.

The more helpful that you are, the more comfortable they will feel in renting from you. At the same time, you are building a good relationship with your tenant which usually, will result in having good tenants.

Respond on Time

There’s almost nothing worse than having a household emergency when you can’t get in touch with your landlord. Remember….you want your tenant to pay on time, every time… The tenant is responsible for contacting you in the event of an emergency, no matter what time it is or if you are on vacation.

Make sure that you answer or return their calls as soon as possible and that you offer solutions quickly and easily. If you can’t be available yourself, consider hiring a property manager to handle property-related issues for you. Remember to inform the tenant that another person will respond.

Make sure to have go-to contractors that you can rely on for certain issues, such as plumbing or heating problems, small repairs, etc. Since you may not have the time or the skills to fix whatever is broken, having trustworthy, timely, and efficient contractors will save both you and your tenant time and money.

Be Accommodating and Understanding

If you have a tenant that consistently pays their rent on time, and who is respectful towards both you and the property, don’t be too hard on them if they come to you and say that the rent may be late at a certain time.

Of course, it’s not something that you would want to make a habit of… But hey, if you’ve got a great tenant, who is responsible and financially trustworthy, don’t ruin the relationship by punishing them for what was likely an unforeseen or complicated circumstance.

We’ve all had bad days, or unexpected bills, so try to be understanding when you can. Chances are, your tenant will appreciate you more and will do their utmost best to always make their payments on time.

Appreciation goes a long way

In reality, while you are giving your tenant a place to live, they are paying your mortgage or putting money in your pocket. Landlord-tenant relationships are still business relationships, and just like a business may show customer appreciation, landlords should too.

Around the holidays, give your tenant a gift basket or a card. Showing them that you are a person (not just someone who cashes their checks) and that you are happy to have them around will make them feel positive about renting from you.

Help with seasonal costs, such as gardens, by offering to pay some of the bills for landscaping. The tenant should feel like the rental is their home, and having it look nice and well-maintained is positive for you. That way, when the property goes up for rent, it will already have a reputation as an appealing home in the area.

Renting with Pets

For many Queenslanders, pets are an important part of their lives. Often, pets are viewed as part of the family and provide companionship, safety, physical benefits, and even mental health benefits. 

For more information regarding the reformed Tenancy Laws in Queensland, that covers “Renting with Pets” Click HERE.

Always be respectful

Although according to the RTA, landlords are required to give notice before entering a property in writing on a specific form, it may just boost the relationship if you call in advance to ask which date and time will suit them best. That is if they agreed that you may call them from time to time.

After working out an appointment that works for you both, drop by and leave a formal notice, or email it to them if you know that they have access to the internet.

It’s better to make your tenants feel like they are in control of who enters their home and when. Instead of just leaving a notice on the door for them to find (or not) the next time they leave the house, communicate with them by phone or by email to let them have a say.

You’ll be entering the home, either way, treating your tenant with respect and courtesy can go a long way.

Conclusion

The basic idea behind retaining happy and long-term tenants is to treat them the same way you would want to be treated. Try to make it so that they are not only attached to the home that they have created, but to the excellent renting situation that you, the landlord, have created.

Make your presence a bonus in the tenant-landlord relationship, instead of an irritation. Tenants who have good experiences are more likely to stay in the property long-term, as well as recommend you to friends and family.

Read more about Tennants’ rights Here

 

 

 

Building Inspection

What rights do Tenants have

How the Queensland Government intend to reform tenancy laws that better protect tenants rights and Landlords, and improve housing stability in the rental market

According to the Residential Tenancies Act?

Rentals Brisbane

How will Queensland Rentals be affected?

Most people (tenants and landlords) know that tenants’ rights are important and that tenants have the right to live in a safe, secure and quiet environment that is managed in accordance with the law.

At the same time, property investors have rights as well and the Queensland Government recognized that and wants to make sure that both parties are catered for in the Residential Tenancies Act Queensland. 

However, in my recent research to determine the conditions of rental properties in certain areas, I have seen rental homes that gave me the creeps…I wouldn’t want to live there! And I would not have people live there if it were my properties.

I couldn’t understand how a property investor could rent out such a dump and feel good about it.

Yes, any property investor needs to get paid when people are renting the home….However, in my opinion, if anybody has the intention to enter the Real Estate Investing market, they should make sure that they are up to date with the latest legislation.

After all, any property investor would want a good tenant, yes? Well, providing good living conditions will go a long way…. Refer to another article where we covered the benefits of having Happy Long-Term Tenants

You can imagine my delight when I read the latest report: A Better Renting future Reform Roadmap.

Queensland Government: “Creating fair and workable rental laws for Queensland.”

The Queensland Government is committed to ensuring all Queenslanders who are renting, have access to safe, secure and sustainable housing while ensuring effective safeguards are in place to protect investments of property owners.

The RTA put together a Regulatory Impact Statement to indicate how it is intended to be done.

You can access the FREE Regulatory Impact Statement HERE.Affordable Homes

 

Below is a short article published by the Residential Tenancies Act Queensland.

“Help shape Queensland’s tenancy laws…

A review of Queensland’s tenancy laws is underway to ensure the rental needs of Queenslanders are met, now and in the future.

With more Queenslanders renting and renting for longer, it is important that tenancy laws support individuals and families to find a safe, secure and sustainable place to call home in rental accommodation.

These laws also need to protect the investments of property owners, who provide much-needed Queensland Rentals for an increasing number of Queenslanders.

A Consultation Regulatory Impact Statement has been developed to seek informed feedback on policy options to change Queensland’s tenancy laws and their impacts.

The public was invited to provide feedback which included the following:

  • ending a tenancy fairly
  • minimum housing standards
  • domestic and family violence
  • minor modifications
  • renting with pets

The feedback on the Consultation Regulatory Impact Statement provided will inform future policy decisions made by the Queensland Government to ensure a better-renting future for Queensland.”

Article Source: Residential Tenancy Authority, QLD

Even though you won’t be able to give your feedback anymore, you can still access the information that is relevant.

Open Doors to Renting Reform was a grassroots consultation to understand what renting issues matter to tenants, rental property owners, and managers and their ideas about how to improve renting in Queensland.

The Queensland community embraced this opportunity with over 135,000 responses sharing rental experiences and ideas about how renting can be improved.

This feedback identified that Queenslanders want:

  • to feel safe and secure with their rental accommodation, either as a home for a tenant or as an investment for a property owner.
  • tenants to be able to make a home in their rental accommodation with effective safeguards in place to protect the owner’s investment.
  • action to ensure rental accommodation is well-maintained to protect tenant health and safety.
  • tenancy rights and obligations that are clear and workable for all parties.

If you want to read the full impact statement, please click HERE to get access to the FREE Regulatory Impact Statement

 

 

 

Mortgage Lending Restrictions Relaxed by APRA

Will the home loan rule relaxation from APRA allow for bigger mortgages?

Yes, people may be eligible for larger home loans as APRA allows lenders to change the way they assess a prospective home buyer’s ability to meet repayments.

The Australian Prudential Regulation Authority (APRA) has decided to relax stringent lending restrictions on banks and other financial institutions.

First Home Buyer

The First Home Buyer will have an additional benefit: The First Home Owners grant

What does that mean for you? 

Banks no longer need to check to see whether their residential customers can afford, at least, a 7 percent interest rate on their home loan repayments. 

Under the new standard, implemented by APRA on Friday, 6 July 2019, the banks will have the freedom to set their own serviceability buffers. 

However, the regulator said on Friday that banks can set their own minimum interest rate floor and do their calculations, using a 2.5% buffer.

Therefore, as many banks now offering variable mortgage rates in the

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low-3%s, many borrowers are likely to be tested at a rate below 6% per annum when banks decide whether they can afford to repay their loan.

APRA’s chairman, Mr. Wayne Byers said: “In the prevailing environment, a serviceability floor of more than 7% is higher than necessary for ADIs (Australian deposit-taking institutions) to maintain sound lending standards,”

However, your household debt will still be taken into consideration.

According to an analysis done by Rate City, a family on an average household income of $109,688 would be able to borrow up to around $60,000 more if their loan was assessed at 6.25%.

For a single person in the same scenario, it allows him/her to borrow up to about $50,000.

Want to take advantage of this amazing opportunity?

Then Click Here

Wayne Byres said that the switch was justified by the ultra-low cash rate set by the RBA of 1%.

APRA’s chairman, Byres said: “The changes being finalised today are not intended to signal any lessening in the importance Apra places on the maintenance of sound lending standards,”

“This updated guidance provides ADIs (authorised deposit-taking institutions) with greater flexibility to set their own serviceability floors while maintaining a measure of prudence.”

Byres said that the new rules were appropriate in the current market.

The average interest rate on a standard variable rate loan is set to drop below 4% when lenders reduce mortgage costs, in response to this week’s second straight monthly reduction in the cash rate by the Reserve Bank.

“In the prevailing environment, a serviceability floor of more than 7% is higher than necessary for ADIs to maintain sound lending standards,” Byres said.

“Additionally, the widespread use of differential pricing for different types of loans has challenged the merit of a uniform interest rate floor across all mortgage products.”

When Apra first introduced the serviceability guidance in December 2014, the official cash rate was 2.5 percent in an effort to reinforce sound residential lending standards.

For nearly three years the cash rate was at a historic low of 1.5% before being cut in June and July by .25 percentage points, to reach its current 1%.

Four of the big banks have passed on the majority of the recent cuts to customers, however, they have pocketed some of the cut in the interests of savers, shareholders and their bottom line.

Byres said it is crucial that lenders remain vigilant since he acknowledged that Australian households were already highly leveraged.

“With many risk factors remaining in place, such as high household debt, and subdued income growth, it is important that ADIs actively consider their portfolio mix and risk appetite in setting their own serviceability floors,” Wayne Byres said.

“Furthermore, they should regularly review these to ensure their approach to loan serviceability remains appropriate.”

Byres said that a majority of the 26 submissions Apra received since May had supported its proposals.

Source: The Guardian

Now, is most certainly the time to buy a home! If you are interested in buying a home, please CLICK HERE so that you can apply right away.

 

Affordable Homes

Where will you find the Best Affordable Homes around Brisbane?

Affordable Homes

For people who are earning more than $75,000 per year and looking for New Affordable Homes For sale, check out the list of Greater Brisbane suburbs with prices under $400,000

  • Eagleby – Price: $230,000 that offers 6.3% Rental yield
  • Burpengary – From $367,000
  • Morayfield – From $380,000
  • Caboolture – From $399,900
  • Bahr Scrub – From $389,000
  • Logan Reserve – From $369,900
  • Redbank Plains – From $399,900
  • Flagstone – From $399,900

 

Real Estate AustraliaGet your information on our variety of Affordable Homes

Affordable Homes

What is considered as Affordable Homes?

Well, since every person is different with a different income, one can’t really say that a specific price range that describes affordable homes. It relates more to the individual’s ability to repay a home loan.

The affordability for each person can be determined by calculating the repayments of a home loan. We will put you in touch with a mortgage broker to assist you for the best results. 

Let’s start with the first on our list….Eagleby:

Eagleby

Price: $230,000 – 6.10% to 6.3% Rent Return – Investors Only

Eagleby

You don’t see this often….an investment property for under $250,000!

More information on the project:

This project is a boutique size development made up of 18 townhouses offering 1 bedroom, 1 bathroom and single car lock up garage homes.

All townhouses have an open plan kitchen and living room, with split system reverse cycle air conditioning to present comfortable living for residents.

Centrally positioned, this development is located approximately 35km south of Brisbane’s CBD within the Logan City region.

This popular community is located near train stations, the Pacific Motorway and the Logan Motorway, making commuting to the Brisbane CBD or Gold Coast a viable option.

With Logan Hyperdome Shopping Centre and entertainment precinct just a stone’s throw away, this complex has your everyday needs covered.

Close to a selection of highly reputable private and state schools, TAFE’s, and childcare centres as well as golf courses and country clubs, this development is an ideal place for families to grow.

Property Features:

Stone benchtops & stainless-steel appliances to kitchen
Ceiling fan light to bedroom
Remote control garage door
Vertical blinds throughout
Air-conditioner to living area
Security screens to windows & all external doors

Burpengary

Prices from $367,000

Affordable homes in Burpengary

Affordable homes in Burpengary From $367,000

 

This is one of our One Contract House and Land Packages with 3 Bedrooms, 2 Bathrooms and 1 garage plus a patio area.

Like all our House and Land packages, this is a Fixed Price, Turn Key solution.

Burpengary, Morayfield and Caboolture are all in the Morton Bay Regional Council Area, spanning 2,037 square kilometres is located in south-east Queensland and is bounded by the Sunshine Coast Council area in the north, Moreton Bay in the east, Brisbane City in the south, and the Somerset Regional Council area in the west.

The Moreton Bay region is the key growth corridor north of Brisbane. Its major centres are a short distance from Brisbane’s city centre (Strathpine 22kms, North Lakes 30km, Redcliffe 35kms and Caboolture 50kms). The region has easy access to the Brisbane CBD, Brisbane Airport, Port of Brisbane and major transport routes in South East Queensland.

Its ease of access and competitively priced residential and commercial premises and land has attracted numerous new residents, a highly skilled workforce and over 27,000 businesses (2018) and has underpinned the region’s strong economic performance.

Moreton Bay Regional Council is committed to improving the attractiveness of its main centres of business and employment and to providing opportunities for local business growth, and new business investment to support and complement continued strong population growth in the region.   Source: Remplan Economy

Morayfield

Prices from $380,000

Homes for sale in Morayfield

Morayfield has several Affordable Homes available at the moment

Caboolture

Prices from$399,900

Caboolture

Would you be interested in living in Caboolture?

Bahr Scrub

Prices from $399,000

Bahr Scrub

Have you thought of living in Bahr Scrub?

Information on Bahr Scrub

Perfectly placed amongst abundant amenity, Bahr Scrub is located in the thriving growth corridor between Brisbane and the Gold Coast.

With the Pacific Motorway (M1) 5.4km from Bahr Scrub and the nearby convenience of Beenleigh train station, commuting to work or enjoying a weekend escape is easy.

Grab a cup of coffee and fresh vegetables at the Early Bird and Breakfast Markets, indulge in retail therapy at City Road, Beenleigh and enjoy the convenience of your local Holmview Central Shopping Centre.

The area includes many places to socialise. Catch up with friends over a quiet drink at the Windaroo Tavern or indulge in the famous choc chip waffles at the Belgian Chocolate Saloon.

Hammel Park is home to a range of sporting clubs including the Beenleigh Rugby Club and Beenleigh Netball Club. There’s something for everyone, of all ages.

Bahr Scrub has a wide range of educational facilities within a 10km radius of home. For every child, of every age, you’ll find the perfect school for your children.

There are 32 child care centres conveniently located within a 10km radius of the Estate, ensuring your little ones will have access to early learning.

When it’s time for your child to start school, you can choose from Windaroo State Primary School, Beenleigh State School, Eagleby South State School, Eagleby State School and Canterbury College, all within a 10km radius of Brookhaven.

There are four schools within 10km of the estate, Windaroo Valley State High School, Canterbury College, Trinity College and Beenleigh State High School.

Griffith University Logan Campus is conveniently located just 15km from home.

Surrounded by rolling hills and framed by picturesque brooks, this master-planned community marries connectivity and privacy in a green pocket of tranquillity. The environment provides an idyllic backdrop for a range of community spaces, including viewing platforms, fitness nodes, walking trails, mountain biking trails, community gardens and local parks. Here, you can build the life you love with a house design of your choosing, or a carefully designed house and land package.

Surrounded by a diverse range of native flora and fauna including eucalyptus trees and tea trees, here, children and adults alike will be enchanted by the landscape that is so quintessentially Australian.

It’s more than a place where people and their families simply exist. It’s a place to discover the beauty around you at, Bahrs Hill and Clarks Hill and Buccan Conservation Park, a subtropical park home to kookaburras, koalas and abundant natural wildlife.

In my opinion, this is the ideal place to invest in. Whether you want to live there, or rent the house out, there are so many advantages.

Killara

Prices From $369,900

Kilara

Killara is worth checking out

Information about Killara and Logan Reserve:

Award-winning architecturally designed homes in a contemporary master-planned community in Logan Reserve.

The Single story terraces are designed to make the most of the surrounding green bushland whilst living in ultimate urban style. Enjoy low maintenance living combined with fresh open space, inspiring outdoor recreational areas and a vibrant community. With options for 3-bedroom, single garage and 4-bedroom, double garage homes all-encompassing high-quality inclusions.

Take advantage of this Full Turn Key Packages that starts from $369,900, with quality inclusions like:  stainless steel appliances, dishwasher, stone kitchen bench top, LED lighting, quality bathroom accessories, reverse cycle split-system air-conditioning, letterbox & fencing and fully exposed aggregate driveway.

The internal colour scheme has been styled and selected by professional interior designers, bringing a contemporary feel and a fresh perspective to your new home.

If it is an investment property you’re after, then this may be a good option for you, since the location is perfect for people who need to be close to train stations, the motorway and want to be close to beautiful park lands as well.

Where Nature meets Urban Style

The Estate is surrounded by green bush land and family park lands. It features boutique neighbourhoods, each with a character all its own, giving you a sense of exclusivity and intimacy with the surrounding environment. Active lifestyle is designed in to this address with multiple active and passive parkland spaces, including: adventure trails, parkland tracks, fitness stations and interactive play areas. This master planned address positions you on the doorstep of a vast range of established local amenities.

8 Reasons why you’ll love living in Logan Reserve:

  • One of Queensland’s key growth areas
  • 10 different education options within 10km
  • A short drive to the Hyperdome with an array of cafes and restaurants
  • 15 minutes to the Loganlea train station
  • Bus stops on Chambers Hill Road
  • Minutes to major shopping centres
  • Walking distance to Stoneleigh Reserve Park
  • Outdoor recreational activities

Redbank Plains

Prices from $399,900

Eden’s Crossing

Eden's Crossing

Have you ever looked into Eden’s Crossing in Redbank Plains?

Information on Eden’s Crossing

Eden’s Crossing is a Master Planned Community which is only:

 30 minutes from Brisbane

 15 minutes from Ipswich

 5 minutes to Springfield

 55 minutes to The Gold Coast

More than 200 families have already moved in to Eden’s Crossing to be close to the existing schools, future neighbourhood shopping, sports fields and creek side park lands. The community is growing quickly so infrastructure is being put in place to support that.

The master planned Eden’s Crossing community is next door to the new Fernbrooke State School and Staines Memorial College and will eventually be home to more than 1,200 families. Currently, Mt Juillerat Drive terminates at Creekstone Avenue and motorists backtrack to the existing onramp at Augustine Heights to get on to Centenary Highway.

Schools around Eden’s Crossing

Whatever style of education your family needs, Eden’s Crossing provides a huge choice of options. Eight childcare centres can be found within 5km of home, while local Redbank Plains Primary School and Redbank Plains High are on your doorstep.

A variety of private and state schools are also close by, including Staines Memorial College, West Moreton Anglican College, St Mary’s College, Springfield Anglican College, Ipswich Jnr Grammar, Ipswich Grammar, St Augustine’s College and Fernbrooke State School opened in 2017.

For tertiary students, the University of Southern Queensland is within a 5km drive, and the University of Southern Queensland Ipswich Campus is just 12.5km away.

Local Transport

With a number of major transport links close by, there’s no doubt Eden’s Crossing is a well-connected community. Future direct access to Centenary Highway will put Springfield Central within 5 minutes drive, while current arterial roads make the journey into Brisbane, Ipswich or the Gold Coast easily accessible.

Public transport services are also close by, with the nearby Springfield Central Station providing direct rail service to Brisbane (approx 40 minutes travel to Brisbane). (A train station in Redbank Plains is in the planning)

Local Parks around Eden’s Crossing

Eden’s Crossing provides 35 hectares of green open space, kilometers of hike and bike paths, four large parks, plus sports ovals and local parks.

You’ll have plenty of options to enjoy the sunshine with friends and family to relax and unwind. Start your day with a hike, leisurely walk, bike ride or enjoy a picnic in the afternoon at White Rock Spring Mountain Conservation Reserve.

Eden’s Crossing has everything you and your family need to live a healthy, active lifestyle. A number of regional parks can also be found nearby, including Redbank Plains Recreational Reserve, featuring sporting fields and a skate park.

The Robelle Domain central parkland is a world-class recreational space with a huge variety of scenic and interactive spaces including the Springfield Lagoon.

But that’s not all the parklands have to offer: treetop walks, shady picnic areas, land art pyramids, artwork, beautiful exhibition gardens, and expansive grassy spaces perfect for large community events and gatherings are all here. The best part is that all this is only 10 minutes away, plus with direct access to the Centenary Highway in 2018, you’ll be even closer.

Flinders View

Prices from $399,900

Flagstone

Flagstone is a forward-looking development with city status in its sights

Area information

Flagstone puts you in reach of a life surrounded by nature combined with all the modern-living musts: convenience, connectedness, community, and that other word beginning with C: choice. And with a 128ha CBD continuing to take shape, life at Flagstone gets more appealing with each breaking day.

Queensland Minister for State Development, Manufacturing, Planning and Infrastructure, Cameron Dick was at Flagstone where he announced the finalisation of the infrastructure agreement for the Greater Flagstone Priority Development Area (PDA).

The Minister said it was the biggest infrastructure deal of its type by any Government in Australia – noting that Greater Flagstone PDA ranked as one of the top 20 biggest towns and cities in Australia. Such exciting times ahead for Flagstonians! 

This article was taken from Chanel 9 News.

Two new water parks planned for the city.

Logan City Council and developer Peet will stump up a joint $5 million to build the two water play areas — one at Logan Central and the other at Flagstone. The Flagstone site will be at the new Flagstone Regional Park, in Flagstonian Drive, next to a skate plaza, dog park and one of the biggest community playgrounds in southeast Queensland.

Construction has started on the brand new Coles Flagstone Village Shopping Centre! The new commercial precinct will include 9 specialty stores, 240 carparks and a full size Coles supermarket.

The new store will create 200 construction jobs and an additional 100 retail jobs when it opens in mid-2020. It’s a great addition for residents at Flagstone, who will be well served by a rapidly expanding range of lively retail, commercial and hospitality options.

Young men and women can now learn the tricks of the construction trade at the South-East’s newest Trades College at Flagstone.

This article was taken from Chanel 9 News.

A NEW telecommunications transmission tower is being built to boost mobile phone coverage in Flagstone.

Vodafone has signed a lease with developers Peet Limited to construct a 35-metre tower in Gates Road, between the new Coles supermarket site and the railway line. It is expected to be operational by year’s end.

The announcement has been welcomed by Logan Country Safe City, the group that lobbied long and hard for action in the mobile blackspot and the outgoing president of Flagstone Community Association.

The article was published in The Jimboomba Times, 29 July 2018. Click HERE to read the full article.

Adventure Playground

Great news for Families who are living around Flagstone!

One of the biggest playgrounds in South-East Queensland opens at Flagstone on Saturday, December 15, ready for the first day of the school holidays.
The community will get its first chance to try the epic new $4 million adventure playground as the state’s 800,000 school students head into the long summer break.

First Time Home Buyer Grant

If you are a First Time Home Buyer and want to find out what you should do to take advantage of the First Time Home Buyer Grant, CLICK HERE  to find out.

If you are interested to find out more about the new homes available in one of these areas, or in any other areas that you may want to live in, or buy an investment property, please Click Here

You will be able to complete an application to get one of our friendly staff members to get in touch with you, or you can just jump the queue and give us a call on 0428 042 555

 

 

The Effect of RBA Interest Rates

What is the effect of the RBA Rate Cuts?

Interest Rates

The RBA rate cut may have a positive outcome for home buyers

Interest Rates

The uncertainty that some people may have experienced just before the federal election, is behind us now. Thank goodness for that, as it affected the decision making of so many.

Since the election results were finalised we’ve seen a number of interesting subplots play out with many market pundits predicting a faster than expected rebound in housing prices and a more positive outlook for the broader economy.

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How will that affect the property market? Well….I suggest we rather look at the effect it may have on the mortgage sector. Here are a few key things we’ve noticed that could have a positive impact on the Mortgage sector:

RBA Interest Rates

 

RBA Interest Rate

Will you save with the new RBA Interest Rate?

RBA Rate Cut

There is widespread speculation about the possible cuts to the official cash rate, by the RBA. Economists have recast their predictions post the election with at least one rate cut of 0.25% predicted as early as June, and some predicting a further 2-3 cuts before the end of 2019.

The impact of this as a stimulus to the broader economy cannot be under estimated. The flow on effect for borrowers could have positive impacts on both the mortgage landscape, as well as the outlook for the property market and an earlier than expected rebound in house prices.

APRA Servicing Buffer:

We have recently seen the significant impact of APRA imposed servicing buffer rates of over 7%, and how this was having a detrimental effect on a client’s ability to borrow.

With APRA now proposing to remove this buffer rate, there are indications that a clients borrowing capacity will increase in the short term. APRA’s final position will more broadly known after the industry consultation period ends in a few weeks.

At this stage they have indicated moving to a flat buffer of 2.50% above the “actual” interest rate offered by the lender. In some cases this could see the buffer rate drop closer to 6%, and have a significant impact on a client’s servicing position.

What does that mean to you, as the home buyer?

We have seen some detailed industry analysis in recent weeks that has predicted the potential impact of both the RBA rate cuts and the removal of APRA’s stringent 7% buffer rate.

Borrowing capacity under both scenarios, is predicted that it may increase by as much as 15%, according to some analysis and this would clearly have a positive impact in many circles and see a likely increase in consumer sentiment.

Lenders continue to to review Interest Rates independently of the RBA with some already making reductions in anticipation of the RBA decision.

There are different interest rates available from the various lenders and it is important to either talk to one of the team members of Buy Real Estate Australia to find out which mortgage broker or loan specialist may be best to serve you.

If you are looking to find out what your borrowing capacity is, before you apply for a Home Loan, then I advise you to Click HERE so that one of our friendly Loan Specialists can get in touch with you (no obligation from your side)

If you are looking to buy a home or an investment property, please complete the form below so that one of our friendly team members can get in touch with you as soon as possible.

 

 

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