Miller Finance

Miller Finance Specialising in Refinancing, First Home Buyers, Investment Property Loans, Buying Out Your Ex & Commercial Loans
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12/04/2022

Sneaky Bank Tricks

The Great Escape2021 saw a massive shift in the way Australian looked at where they were living, one of the few blessing...
04/04/2022

The Great Escape

2021 saw a massive shift in the way Australian looked at where they were living, one of the few blessings of Covid is that it gave a fairly large section of the working population the ability to truly work remotely.

The follow on form this has seen somewhat of an exodus from the capital cities to regional Australia - so where did they all go?

The Gold Coast came in at first place by quite a big margin, second was the Sunshine Coast - so Queensland stole the first two places. In third place was Geelong catering for the Melbourne refugees. Fourth and fifth places belonged to New South Wales with Wollongong and Lake Macquarie coming in - obviously Sydney folk who wanted to still keep within a commutable distance.

It will be interesting to see how this unfolds going forward - post Covid - if there is any drift back to those metropolitan areas and the response of the property market - particularly in metropolitan apartment markets.

Property Market PessimismThere are certainly a lot of negative headlines about the Aussie property market - are they war...
29/03/2022

Property Market Pessimism

There are certainly a lot of negative headlines about the Aussie property market - are they warranted??

Here are some reasons to the contrary:-

- Australians have never been wealthier

- Debt levels have not kept up with property values

- Mortgage stress/default levels have not increased

- Interest rates have not risen

- Banks are conservative with lending practices

- Rising interest rates have not hurt the property market in the past

- A housing shortage remains and is likely to do so

- Migration levels are set to pick up

- Predictions of a major Debt Bomb haven't happened

- The Aussie economy is doing relatively well

- There is a rental property shortage

All these things don't really support a big property crash.

Budget 2022 - First Home BuyersGood news for First Home Buyers (FHB). It has been indicated that the number of annual p...
29/03/2022

Budget 2022 - First Home Buyers

Good news for First Home Buyers (FHB). It has been indicated that the number of annual places for the First Home Guarantee Scheme will rise from 10,000 places to 35,000 places annually.

This is good news, although some would argue that due to the massive rise in house prices that the thresholds should also be increased to give FHB more access to metro and more sought after regional markets.

Overall - a promising addition to this initiative.

Coastal Risk RatingsCore Logic has completed a 30 year analysis of threats to coastal erosion and storm surges and the p...
27/03/2022

Coastal Risk Ratings

Core Logic has completed a 30 year analysis of threats to coastal erosion and storm surges and the potential impact on $29B worth of property. Climate change scaremongering or a real threat - I guess time will tell.

Will this make it harder to borrow on coastal properties? Possibly in the longer term, lenders may require better insurance coverage or even drop the level of maximum borrowing to hedge their risk.

If history tells us - it is the market does not always do as logic would indicate - for example the 5 worst hit flood affected Brisbane suburbs in 2017 - after 5 years had higher price growth than any other suburbs in Brisbane - ????

How lenders factor in this potential risk going forward will be interesting to see

Worry & FearProbably the most significant I noticed from the whole Covid 19 thing is that the fear it created was actual...
24/03/2022

Worry & Fear

Probably the most significant I noticed from the whole Covid 19 thing is that the fear it created was actually far worse than the virus itself - it was both paralysing and all consuming. This seems to have now transferred over to fear about the future and particularly the housing market and our economy.

Am I worried?? Not overly. Why not??

If we look at a lot of the key economic indicators, whilst there are some negatives - there are a lot of positives, there is an overwhelming desire for business and industry to 'get back to normal'. There is also plenty of scope for improvement - there seems to be plenty of work available, opportunity to rebuild a lot of industries - there are a lot of positives.

Will there be casualties - yes - there always are, but there are also plenty of winners/improvers. In the housing market - there is a lot of doom and glom about property crashes/interest rate rises etc. etc. Yes - interest rates will likely rise (they are just too low - based on a historical perspective) - housing price growth will likely slow and likely to correct at some stage.

However, there are still a lot of drivers to hold prices, post Covid migration will ramp up, we are still very short of housing, there is a building boom combined with materials issues/shortages.

Takeaway - stop worrying too much on the future and get more focussed on what you are doing now and in the next few months - your Mental Health will thankyou for it.

22/03/2022

Climate Change Now A Factor When Purchasing

New research indicates that climate change factors are now more of an additional buying criteria than ever. Recent floods in Northern NSW and Brisbane have certainly raised this issue, particularly due to the closeness of major floods.

Both flooding and bush fire exposure potential will/should be added to any prospective purchasers buying checklist. This doesn't necessarily mean that people won't buy in such areas but the risk will need to be factored in and in turn - likely to be a potential issue for banks and lenders.

Affordability will tend to be the major driver for a lot of property purchasers but exposure to threats will no doubt be in the back of peoples minds when looking at properties in bush fire and flood prone areas. As if it wasn't hard enough for a lot of people to get on the property ladder as it is!

Current Events & Property PricesWith record-high petrol prices many investors are spooked about the possibility of inter...
13/03/2022

Current Events & Property Prices

With record-high petrol prices many investors are spooked about the possibility of interest rates rising sooner rather than later - and what this might mean for property prices. The Reserve Bank has a "mandate" to maintain inflation between 2-3 per cent.



All the major banks have been predicting property drops by this time next year, truth is their track record is not too reliable. Their logic is that rising interest rates will result in falling property prices, history show this not to necessarily be the case.

If you have a look at the above graphic (which shows the relationship between house prices and interest rates in Australia over the last 35 years) and pay particular attention to the areas shaded in yellow - which highlights the time there were substantial increases in interest rates (red line) and look at the property prices (blue line) at the time.

Nothing too dramatic. Could this time be different - off course but history does tend to repeat in these scenarios due to the 'herd' mentality of such events - time will tell I guess

Costs when buying a home?If you’re about to buy a new home - you need to be aware of the costs to ensure you are not sho...
10/03/2022

Costs when buying a home?

If you’re about to buy a new home - you need to be aware of the costs to ensure you are not short on funds at settlement and give yourself ample time to get organised.

Deposit Required

Having your deposit and savings in order - the amount you need can range between 5% - 20%. There was time when you could borrow up to 100% and use your first home buyers grant as a deposit, but these days lenders require at least some amount of genuine savings.

Stamp duty

First home buyers you may be exempt or entitled to a discount if you qualify for the first home buyer stamp duty discounts. Buying your second home is where most home buyers get stuck – it can be easy to overlook this expense.

Lenders mortgage insurance

Lenders require mortgage insurance if your loan is above 80%. Premiums are calculated as a percentage of the loan and that percentage increases the higher about 80% you go - this can get quite nasty the higher you go.

Borrowing costs

Some lenders may have application fees, valuation fees, fees to cover the cost of their legal and settlement processes. These are generally low with most banks.

Pest and building inspections

This is a voluntary expense, but a cost that can save you from buying a property that requires a great deal of maintenance etc. Usually around $400-$800.

Conveyancing

A solicitor/conveyancer will complete all the necessary title searches, transfers and any other requirements for your new home.

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1446 Coolamon Scenic Drive
Mullumbimby, NSW
2482

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