Krutika Karnavat - KK's Finance Ashby

04/08/2025

Discover the best ways to get your first home.

Low interest rates, flat property prices and government grants continue to entice plenty of first-time buyers into the home market.

While home is where the heart is, savvy first-time buyers are also using their heads. Here are some of the best ways to make your first move.



AN APARTMENT

It's generally accepted that, on average, units achieve lower capital growth than houses over the long haul. However, that average tends to over-simplify things and ignore the many lifestyle benefits that can come with a unit in a handy location.

Units generally allow first-time buyers into areas they couldn't afford if they were buying a house. The lower capital return is often a trade-off.

The right unit, though, can still provide capital growth over time and a solid leg-up to something bigger or better, while owners get the benefit of convenience and low maintenance in the meantime.

What to look for:

- Within 15km of the CBD.
- Walking distance to public transport, cafes and restaurants.
- I-nternal laundry.
- Lock-up garage.
- A complex with a high percentage of other owner occupiers.
- Affordable body corporate fees.
- City views.
- Built-in wardrobes and other storage.

What to avoid:

- Too many stairs.
- Areas with a glut of new apartments for sale.
- Over-capitalising on any make-over.
- High body corporate fees.
- Something to consider:

If you decide to trade up to something bigger, you may find your unit becomes an ideal starter for an investment portfolio.


THE FIXER-UPPER

If you're set on a certain area but find yourself short on the sale price, consider an older house in need of renovation. With property prices flattening, the opportunities for a quick profit with a lick-and-flick have dwindled. But for first-home owners looking to settle for five or more years, a renovator's delight could still have plenty of upside.

Fixer-uppers generally appeal to buyers who plan to do most or some of the work themselves. If you're not handy or don't have time to work on the property, steer clear.

A professional building inspection is a must for all properties, but the devil is always in the detail when it comes to older homes. Read the inspection report thoroughly and seek more information and repair quotes if any issues are highlighted.

What to look for:

- Houses that only need cosmetic work such as a new kitchen, bathroom, paint, floor coverings and landscaping.
- Sound electrical and plumbing.
- A high aspect (views always add value).
- Signs of other renovations in the neighbourhood.
- Excellent local infrastructure, such as public transport, or plans for improvements.
- Good property drainage.

What to avoid:

- Asbestos (unless it is a bargaining chip and can be removed easily by an expert).
- Structural deterioration.
- Damp.
- Properties prone to flood.
- Something to consider:

Look in post-war suburbs with ageing populations, especially if they are near other areas that have already undergone urban renewal.


HOUSE AND LAND PACKAGE

Your first home doesn't have to be your dream home, but a house and land package could get you close.

If you are prepared to be further from the city, the house and land bundle is worth considering. You not only get all the conveniences of a new home, often built to your design, but better energy efficiency than an older home due to new regulations and improved green technology. You may also be able to take advantage of government incentives for new homes, on top of regular first-home buyer grants.

The trade-off for all of this is usually distance. If you work in the city, a long commute to the office may soon take the gloss off your new home and neighbourhood. On the other hand, affordable, new developments are opening up in smaller cities, such as Brisbane and Perth, which are not as far flung as the new home and land packages in Sydney.

The biggest challenge with new neighbourhoods is infrastructure, especially transport. Talk to the local council about what is planned for the area and when.

What to look for:

- Infrastructure to support a new suburb, including shops, public transport and schools.
- A reputable builder who has built other homes in the area, not another state.
- Land that will help set your home apart - a high aspect, city or bush views.
- An easy-to-read contract that spells out all inclusions, progress payments, completion date, allowable delays and treatment of unforeseen conditions.
- Good drainage.

What to avoid:

- Flood-prone land - reclaimed industrial sites and land near golf courses and parks are often on flood plains.


BUDDY UP

Many singles are now finding two heads and wallets are better than one when it comes to their first home. Siblings and friends are buddying up to get a better quality first home than they would solo. Finding the right partner is key, with trust and reliability critical. Contracts now accommodate tenants-in-common with equal and unequal shares in a property.

As your local Mortgage Broker, I can then help you structure a loan that reflects each owner's share and repayments.



Talk to your local mortgage broker

Your house hunt should start with a visit from a local Mortgage Broker. Brokers work for you, not the lender. Their aim is to find the best home loan for your situation, saving you money over the life of the loan. They can also manage the entire loan process and organise pre-approval so you can start your property search with confidence.

02/08/2025

02/08/2025

Introducing the new home building methods that can save you a lot of time and money.

In the past, prefabricated houses would connote images of tackiness and shipping container living, but prefab housing is now enjoying an avant-garde revival.

Today's prefab houses consist of high end materials, follow strict green building practices and are designed by leading architects. Often they have substantially better thermal ratings than brick homes, meaning they actually cost a lot less to heat and cool.

Some new builders even start with a traditionally built lower floor, then build a prefabricated second floor, being less expensive and much faster than building a standard two-storey home.

To find out more, download my short introductory PDF article to this style of home that is growing in popularity - Absolutely Prefabulous.

https://www.mortgageaustralia.com.au/email/files/absolutelyprefabulous.pdf

01/08/2025

If you want more space, renovate right!

It's been more than 25 years since Tom Hanks and Shelley Long showed us the calamitous side of renovating gone wrong in the comedy movie, The Money Pit, but the warnings ring loud and clear today.

With a sluggish property market, many home owners are opting to renovate rather than relocate. Before you hit the hardware store and strap on the tool belt, here are my top tips to renovate your way to reward, instead of ruin.

1. Renovate or rejuvenate?

You don't have to tear down walls or add a new storey to add value to your home. If you need extra space, you will probably have to renovate.

But there are plenty of ways to add value without making drastic structural changes: paint a new colour scheme inside and out; clean up and replant an overgrown garden; replace floor coverings or sand and revarnish existing timber floors; spruce up old windows with some modern shutters; or create some extra storage with built-in wardrobes.

2. Know what you can and can't do yourself.

Not the DIY type? Face defeat early and call in experts to tackle the job. It may be difficult to part with money for something you feel you can do yourself, but if you botch the job, you will pay more in the long run. There are some jobs even skilled DIYers should not tackle for safety reasons, including electrical work, asbestos removal and roofing.

3. Target your market.

If you are buying a property specifically to renovate for profit or tarting up your existing home for sale, consider the likely buyers for the neighbourhood. Remember you're not renovating for your own lifestyle and tastes, so keep colour palettes neutral and avoid fittings that are overly artistic or unusual.

4. Take a peek at the competition.

Visit some of the fully renovated houses in your area that are up for sale to see what the market is prepared to pay and what buyers are looking for. It will give you a good handle on which features help differentiate one property over another and current values.

5. Don't overcapitalise.

It remains the golden rule of renovating and is particularly poignant in the current market. Cost every aspect of your project and be realistic about the value it will add, especially if you are planning on staying in the property for only a couple of years or less.

If you plan on living there for more than five years, you have a little more leeway to recoup the value of your renovation at sale time.

However, it's still wise to keep at least a 20% margin between what you spend and the current value in case you have to sell sooner than expected.

6. Don't start what you can't finish.

If you don't have the money to undertake your project, don't start. Some renovators kick off their project with an aim to saving up along the way. If your savings fall short you may be left with an unsightly, unfinished project, which will curtail your capacity to sell if needed.

Chances are you will also lose interest in taking on future projects, so make sure you have all the money you need upfront.

30/07/2025

Are a few unfamiliar words stopping you from building wealth?

Are you thinking about dipping your foot in with property investment, but don't really know where to start? There is a lot of information out there, but many first-time investors become overwhelmed by all the technical stuff.

Don't panic though - here is a list of some of the most common phrases to do with property investment - and they have been de-mystified for you.

Capital gain

Capital gain occurs when the property increases in value, over and above what you paid for it, and what you have spent on repayments, improvements and additional costs.

So if you purchased a property for $200,000, and you spent $40,000 on improvements, and $50,000 on repayments - then you sold the property for $350,000, your gross capital gain would be $60,000.

Equity

Equity is the difference between what you owe on your loan, and how much your property is worth. You can build equity by investing in property that is likely to increase in value, while you work to reduce your loan amount.

If you purchase a property for $300,000 and you put down a $30,000 deposit you would owe $270,000. Therefore you have $30,000 equity in the property.

Investment Strategy

Your investment strategy is the plan that you make, taking into account your financial goals. Are you looking for a way to get a quick win - and only plan to focus on short term gain? Or are you looking to build an investment portfolio over a number of years or decades?

This could be something to discuss with your accountant or financial planner, as well as your mortgage broker.

Interest only loans

Interest only loans allow you to borrow money and only repay the interest for a specific period of time. Usually the interest only period lasts from 1 to 5 years.

These loans are helpful if you're focussing on short term gain, and plan to sell the property within the first few years.

Introductory rate loans

'Honeymoon rate' loans offer a lower interest rate for a short period at the beginning of the loan, before you return to standard variable interest rates.

These loans can be attractive for owner builders, or those planning to achieve a short term gain on their investment. The lower repayments mean that you could pay more off your loan balance in the short term.

Line of credit

A line of credit is a pre-approved amount of money that you can borrow when you need it - either as a lump sum or in small portions.

This option is popular with experienced investors, who are always on the lookout for their next property purchase, and need to be able to move quickly.

Redraw facility

A redraw facility allows you to make extra repayments against your loan, and then take the money back later if you need it. This is a great feature for people buying and selling multiple investment properties.

All in one accounts

All in one accounts are designed so that all of your income goes to the one place, and the account is used for your loan as well as all of your expenses.

Because everything goes into this account, the amount that you owe will be reduced. Be sure to look into all of the fees involved with this option.

Offset account

An offset account is a savings account linked with your loan which reduces the interest you pay. Your lender will take your savings into account and deduct this figure from what you owe before calculating your interest.

Construction loans

If you're building a home and you don't need to borrow the full amount upfront, a construction loan allows you to only pay interest on the amount that you have spent.

Bridging finance

Bridging finance is designed to help you purchase one property before you sell the other. Once you sell the old property, the funds are paid straight into the loan for the new property.

The danger here is, if you don't sell the old property as quickly as you thought, you will be responsible for servicing a much larger loan.

Of course, there's so much more to think about when you start looking for an investment property. But armed with some of the lingo - you will be an expert in no time.

30/07/2025

Discover how to turn your home equity into a better retirement for you.

If you have equity stored away in your home, now could be the perfect time to tap into it for an investment property.

Equity is simply the difference between the value of your home and what you owe on it. If you have a property valued at $500,000 and owe $200,000 on it, you have $300,000 equity available.

There are a few reasons why the time is ripe for home owners to scout out an investment property.

Firstly, property prices have flattened across most of Australia in the wake of global uncertainty. However, key indicators in the US now point to a recovery there, which our market is likely to follow, especially given our strong economy. So, not only is now a buyer's market but there's a good chance of capital gains in the first few years of ownership.

Secondly, interest rates are low. After the recent drop in official rates, there is strong speculation they won't dip further in the short term.

Thirdly, we still have a housing shortage here in Australia, which continues to drive low rental vacancy rates. That means good properties rent easily.

So, where to begin?

Start with a visit to your local Mortgage Broker to get a rough idea of what you can borrow. Your broker can estimate your equity, talk through the types of loans available and give you a rough idea of repayments. Then you will know what you can afford before you start looking at properties.

You can also do some rough sums beforehand with some of the calculators on our website.

A broker can find the right loan for your circumstances and shop around for the best deal. One of the most popular products among property investors is a line of credit. It acts like a big overdraft at a home loan rate, giving you instant access - as a rule - to up to 80% of the equity in your home. Interest is only paid on the funds you use. It's a very elastic, convenient product. But one word of caution: you need to be disciplined with your cash flow. Easy access to equity can be a temptation for many borrowers to spend up big on depreciating assets that offer no investment value and only add to your overall debt.

Capital gains or rental return?

You should decide whether you want strong rental returns or decent capital growth over the next several years on your investment. If you are in a high tax bracket and looking to create a tax advantage through an investment loss, you will be looking for capital gain.

First-time investors looking to establish a portfolio of properties should also be aiming for capital growth over the next five or so years, as this will establish equity for the next property purchase. However, some investors are not in a hurry for capital growth and prefer their property to be cash positive or neutral from the get go. If that's the case, consider a property in one of the areas with a long-term future in resources, where rents reflect a shortage of housing. Just keep in mind that although the resources sector has a strong future, based on global demand, your investment is entirely dependent on the continued success of one industry.

Right now, the bottom line is that there's potential for both decent capital gains and rental returns for property investors who chose the right property in the right location.

Find the right property

The first rule is to invest in property with your head and not your heart. Remember, you are not buying a home or apartment to live in yourself.

Savvy investors look for properties:

- Close to public transport and other amenities, such as shops or schools, especially in-demand public schools that only accept students in their local catchment.
- That are low maintenance and well maintained.
- In areas with good potential for capital gains.
- In areas with low rental vacancy rates.

Another tip for first-time investors is to stick to familiar turf. It could be near where you live now, where you grew up or previously lived, where you have friends or family or near where you work. Not only are you more likely to feel comfortable investing in a familiar area but you can keep an eye on local trends and the property itself.

You should also find out whether any major infrastructure projects are slated for your target area. New roads, public transport and major developments, such as hospitals, can add significant value to rental properties. Visit www.infrastructureaustralia.gov.au for links to the major planning departments in each state.

Managing your investment - and your tenants

Like all investments, rental properties need to be managed. You can be landlord and property manager in one, or pay a professional property manager. If you are busy or live some distance from the property, your money will be well spent on a reputable, reliable manager.

For a small monthly fee (generally 6 to 9% of rent), a good manager will vet prospective tenants, ensure the property is looked after, make sure rent is paid on time, arrange repairs and maintenance and recommend appropriate rent increases. Ask for referrals from other investors and look for an agent who specialises in property management, rather than sales, so you know your rental will not be second fiddle to other activities. You should agree on what your property manager can authorise automatically when it comes to repairs.

It's also important you keep tabs on the local property market to track the equity you build over time, which not only adds to your wealth but could be used towards your next investment property.

29/07/2025

6 Steps you can take today to achieve your financial goals

Are you struggling to manage your household expenses, mortgage repayments and other unexpected bills that always seem to arrive at the wrong time? It might be time for you to sit down and create a budget that works for you.

Many homeowners have achieved their financial goals a lot sooner by creating and following a careful budget. Who knows - you might even be able to pay a little more off your mortgage each month and be mortgage free a couple of years sooner.



Step 1 - Identify how you're spending money now

Get out the bank statements, receipts and online banking, and spend some time examining exactly what you spend money on now. Be honest, and don't forget to factor in the things that only come up on occasion - like car registration, birthday presents, Christmas etc.



Step 2 - Set goals for the future

Work out what you hope to achieve by implementing your budget. This will help to motivate you because you will be working towards an actual goal and you can see the results.



Step 3 - Use budgeting software or other methods for monitoring spending

There are some incredible programs available now for budgeting, accounting and monitoring spending. Many of these can be synced with your internet banking so that they automatically collate the information for you.



Step 4 - Leave room for the occasional unscheduled purchase

There's no use creating a strict budget if you can't stick to it. If you currently go out for dinner once a week, rather than removing it altogether, try budgeting for dinner out once a month. If you don't feel like your life has come to an end, you're more likely to stick to the budget and achieve your goals.



Step 5 - Watch out for disappearing notes

Do $20 notes seem to grow legs and walk out of your wallet whenever you stop at the ATM? If you don't need to withdraw cash then try to avoid it. Most outlets have EFTPOS facilities these days, so try using your card for small purchases, rather than withdrawing money and making it disappear.



Step 6 - Don't count on uncertain wins

Don't spend money that you can't afford, because you think that you might be getting a tax return this year. It's dangerous to rely on any money that isn't guaranteed when you create your budget. Maybe you could wait until you actually receive the money and then do something really special with it once you have it.

27/07/2025

If you are planning to start a family - these financial tips will help.

Are you managing a mortgage and starting a family?

Many a new parent has been caught out realising our once organised calm life is a thing of the past when we bring our bundle of joy home. It's amazing how tiny babies can turn our household upside down.

We quickly learn that we need to be more flexible about when we eat, sleep, go to the shops and even have a shower.

It helps to be flexible in your financial life too when the impact of a reduced household income and the expense of a new addition to the family start to become apparent.

A little forward planning now can make it easier to focus on what's important later - your family.

Here is a guide with some ideas on how you can relieve the financial pressure of starting, or increasing, your family - Can you manage a Mortgage and a Baby?https://www.mortgageaustralia.com.au/email/files/amortgageandababy.pdf

27/07/2025

?? Want to Borrow More for Your Dream Home? Here�s How! ??

If you're planning to buy a home, increasing your borrowing power can help you secure a larger loan and better terms. Here are some key ways to boost your borrowing capacity:

? Improve Your Credit Score � A strong credit score makes you a more attractive borrower. Pay your bills on time, reduce debts, and check for any errors on your credit report.

? Reduce Existing Debt � Lenders assess your debt-to-income ratio, so paying down credit cards, personal loans, and car loans can significantly increase your borrowing power.

? Increase Your Savings � A larger deposit reduces the lender�s risk and may allow you to borrow more. Regular savings also show lenders you�re financially responsible.

? Boost Your Income � Consider additional income sources like a side hustle, rental income, or even asking for a salary increase at work.

? Limit Unnecessary Expenses � Lenders review your spending habits, so cutting back on non-essential costs can improve your financial profile.

Want personalized advice on maximizing your borrowing power? Let�s chat! I�ll help you navigate the lending process and get you closer to your dream home. ????

26/07/2025

?? First Home Buyers, There�s Still Time! ??

If you�ve been dreaming of owning your first home, now is the time to take action! ?? While the property market has seen changes, there are still plenty of opportunities for first home buyers in Australia. Whether you�re looking for your own place to call home or starting your property journey, there�s never been a better time to get the right support and guidance.

We specialise in helping first-time buyers navigate the often tricky world of mortgages. ?? From finding the best interest rates to understanding government grants and incentives, we�re here to make the process as smooth and stress-free as possible.

?? Key Benefits for First Home Buyers:
?? Access to First Home Owner Grants
?? Tailored mortgage options for your unique needs
?? Expert advice to guide you every step of the way

Don�t let the fear of navigating the market hold you back. With the right advice, your first home is within reach! Reach out to us today to start your journey towards homeownership.

?? Call us now to learn how we can help!

https://www.firsthome.gov.au

24/07/2025

Here are the questions I get asked most often by Home Buyers:

How much money can I borrow?

We're all unique when it comes to our finances and borrowing needs. And different lenders lend very different amounts. Even if your own bank won't lend you the amount you want, do not assume other's won't.

Contact me anytime, I can help with calculations based on your circumstances, all over the phone.



How do I choose the loan that's right for me?

Our guides to loan types and features will help you learn about the main options available. There are hundreds of different home loans available.



How much do I need for a deposit?

Usually between 5% - 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property.



How much will regular repayments be?

Go to the Repayment Calculator on our website for an estimate. Because there so many different loan products, some with lower introductory rates.



How often do I make home loan repayments - weekly, fortnightly or monthly?

Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.



What fees/costs should I budget for?

There are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:

- Stamp Duty - This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To find out your total Stamp Duty charge, visit our Stamp Duty Calculator.

- Legal/conveyancing fees - Generally around $1,000 - $1500, these fees cover all the legal rigor around your property purchase, including title searches.

- Building inspection - This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).

- Pest inspection - Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).

- Lender costs - Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. I will let you know what your lender charges but allow about $600 to $800.

- Moving costs - Don't forget to factor in the cost of a removalist if you plan on using one.

- Mortgage Insurance costs - If you borrow more than 80% of the purchase price of the property, you'll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.

- Ongoing costs - You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens.

23/07/2025

We all dream of becoming mortgage-free forever. Paying off that loan sooner so that you can enjoy your twilight years without shopping around for the best deal on tinned spaghetti.

This dream can seem a bit out of reach for those already on a tight budget, but don't worry - there are Six Steps that will shave years off your loan at the other end, and have you sipping cocktails on a cruise ship in no time.

Today we will focus on the first step: Choose the right loan in the first place.

There are many home loan choices out there, and it can all seem very overwhelming if you're about to purchase a property. It might be tempting to keep all of your banking in the same place for simplicity. Many borrowers apply with their current bank, just to get it over and done with.

But the right choice of loan can make all the difference in the long term.

Don't assume your current bank branch has your best interests at heart, the more interest you pay the more profitable they are.

When some clients of mine and I reviewed their mortgage, we found that they were paying a far higher interest rate than what many lenders were offering to new clients. They refinanced with a new lender to save around 1% on their variable interest rate.

This might not sound like a huge figure, but on their loan of $400k, Liz and John were able to shave $98,529 and five years off their mortgage.

It's important to shop around for a competitive interest rate, but also consider what sort of loan is best suited to your individual needs.

If you plan to make lump-sum repayments to try and get the loan paid off sooner, you might like to consider a variable rate loan, which usually allows you to make extra repayments, and then redraw that money if necessary.

If you want the security of set repayment amounts, a fixed-rate loan could be your best option.

By taking the time to compare home loan products, you can achieve your financial goals sooner than you thought.

Stay tuned for your next step to becoming mortgage free!