Karayi Home Loans

04/07/2015

http://www.india2australia.com/tax-tips-property-investors/

Rental income is a tax assessable income but outgoings against your investment property are tax deductable and can be offset against other income. These allowable deductions will help reduce your taxable income.

17/01/2015

What’s in store for 2015, property market-wise?
If you’re considering real estate in 2015, the outlook is certainly looking great. Experts say our current low interest rates may be cut even further in the coming months – making the property market a particularly attractive investment right now.

Leading economists are predicting rates could fall three times, or by as much as 75 basis points, next year if unemployment rises and the economy continues to decline. Domain Group senior economist Dr Andrew Wilson said cutting interest rates could occur as early as February.

The sizzling Sydney market grabbed all the headlines in the past 12 months, yet other kinds of property investment around the country have also proven lucrative this year.
The latest figures from CoreLogic RP Data’s daily home value index show the average growth in home values across the major capital cities was 8.4 per cent year-on-year, led by Sydney’s 12.7 per cent growth and Melbourne’s 7.8 per cent rise.

Growth in Brisbane and the Gold Coast (5.3 per cent), Adelaide (4.7 per cent) and Perth (1.4 per cent) has been more subdued, but no residential markets matched the 23 per cent growth in sharemarket-listed property trusts.
Here’s a round up of what the experts are expecting in the year ahead from residential property and property trusts:


SQM Research managing director Louis Christopher said he expected 2015 to be another positive year for residential property owners. “Basically the money markets think it’s a dead certainty rates are going to be cut by April 2015, with the chances increasing of another rate cut in June,” he said. “If such rates cuts happen, housing markets will be boosted throughout the course of the calendar year.”
Real Estate Institute of Australia CEO Amanda Lynch said continuing low interest rates and the possibility of a cut should stimulate activity in the housing market.
CommSec chief economist Craig James said the supply of new housing was starting to rise, which would lead to softer price growth, but a major slump was unlikely. “Sydney home prices have just been playing catch-up. Over the last decade Sydney home prices have risen by just 3.6 per cent on average per year, the second lowest of the capital cities,” he said.
CoreLogic RP Data head of research Tim Lawless said he expected Sydney and Melbourne’s strong growth to soften in 2015, Brisbane property prices to outperform the other capitals, modest growth in Adelaide and Hobart, and a potential fall in Perth home values.
A report by Colliers International said commercial property investment accelerated in 2014, and 2015 would be more of the same with improving demand from tenants. “The majority of sales are now to Australian investors. This is not surprising given that Australian investors are now recognised as the most confident in the world,” said John Kenny, Colliers International’s chief executive for Australia & New Zealand.
AMP Capital forecasts investment returns in 2015 of about 9 per cent for Australian property trusts, the same as its forecast for Aussie shares but better than estimates for residential property (6 per cent) and cash (2.3 per cent).
Research group Morningstar says low interest rates mean downside risk to property prices in 2015 is unlikely.

If lower interest rates are making a new property purchase look more attractive this year, give me a call. I’ll talk you through all your options and find the perfect fit for your needs.

17/11/2014

Three moneyboxes are better than one

When teaching children about spending, saving and sharing, three moneyboxes can sometimes be better than one.

Research commissioned by Commonwealth Bank earlier this year found that the majority of Australian children are earning pocket money. While children no doubt enjoy having some money to spend as they wish, the inflow of cash is a good chance for parents to implement some lessons about saving and sharing as well. The question for parents is how to help their children learn those lessons in a way that is both fun and easy. Multiple moneyboxes could be the answer.

As adults, many of us have several different bank accounts, and online banking makes the process of managing multiple accounts very simple. For young children, though, something that is out of sight in a bank account can often be out of mind as well. Moneyboxes (or jars) sitting on a bedroom shelf have good visibility and can be a great way to remind our kids that not all money is spending money. Dividing pocket money or other earnings into spending, saving and sharing amounts – or any other categories that are important to your family – is terrific money-management practice.

Some moneybox suggestions are:
Spending: Sure to be a popular moneybox! It’s up to you as to what proportion of their pocket money your children are allowed to spend, but ideally it should be less than the whole while still being enough to spend regularly.

Saving: Saving is also an exciting concept for children and they may even like to divide their savings into short-term goals (which may be as short as next week’s school fete) and long-term goals (which may be as ambitious as the latest gaming console, or a bike). It really is amazing what a sense of achievement many children feel when they reach a savings goal and use their own hard-earned money to buy a desired item.

Sharing: Australians collectively are generous with both their money and their time and our children are sure to learn by that example. Whether it is donating money to a charity or using their money to buy an item to give away, having a moneybox dedicated to sharing can be a great way to actively learn about wider-world issues and how their actions can really make a difference.

Three moneyboxes sitting on a shelf can look very cute. And with any luck it could be your child’s first steps towards terrific financial management habits.

17/11/2014

Myth Busters for First home buyers

Buying your first home is an incredibly exciting and rewarding time, as well as a significant commitment.

Because there’s a lot of information out there, we will help you sort fact from fiction by dispelling some of the common myths to help you make smarter property decisions.

It’s always best to buy at auction: false
Neither buying at auction or private treaty is better than the other to purchase property. They are simply different routes to the same end goal, with different factors to consider and prepare for. If you buy at auction, the asking price is not known, whereas if you buy by private treaty there is a set sale price. Auctions are usually more common in urban areas to take advantage of the increased level of competition that exists between buyers.

You'll need a massive deposit: not necessarily
If you’ve managed to save enough money to pay a deposit on your first home without lenders mortgage insurance, congratulations! However, if you haven’t, home ownership could still be within reach. If your savings amount is less than 20% of the purchase price of your new home, you may be able to borrow a little more, provided you take out Lenders Mortgage Insurance (LMI) which protects the lender against the risk of providing you with a loan in the event that you can’t repay it. And because the cost of your LMI will be added to your total loan amount, you won’t be hit with extra upfront costs.

It is difficult to pass the mandatory credit check: false
Any time you apply for a credit product, such as a loan, electricity account or a credit card, the company in question will check your credit rating. This is a report containing information about any applications you have made for credit during the past five years, and includes information such as what accounts you have, whether you pay your bills on time, and any defaults (debts you haven’t paid).
As long as you’ve paid all your debts, or have a good reason for not paying those that you haven’t, your credit rating shouldn’t affect your ability to get a home loan.

Once you have a home loan you are locked in for years: false
You can’t always plan ahead for life milestones like an expanding family, a promotion or change in your employment situation. That’s why flexibility is part and parcel of many home loans. Features such as repayment holidays and redraw are two of the options your home loan may have, that could help you manage your home loan when your life changes.

Talk to me and I can help guide you through the process.

16/10/2014

4 super simple ways to demolish your mortgage faster .Great news for mortgage payers again this month with the Reserve Bank leaving the official cash rate on hold at 2.5% for the 13th consecutive month.

Despite the official cash rate remaining steady at 2.5%, competition is continuing to drive fixed rates even lower in recent months. Surprising some lenders have even reduced their variable rate loans a little lower.

So in this newsletter we look at how you can reduce your mortgage even further right now and, on a lighter note, offer some guidance on how to select the perfect rug to brighten up any space. Enjoy!

With spring in the air and interest rates at record lows, now is the perfect time for you get a home loan health check to make sure you’ve got the right home loan for your situation.
All my clients have been educated to manage their mortgage & I always negotiate the best rate for them for the life of the home loan, so you will all know about the next bit of info.
A message for all new clients - please read the article on 4 Super Simple ways to demolish your mortgage faster - then contact me so that I can activate this for you.
Call or email me now :)

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4 super simple ways to demolish your mortgage faster
If you’re looking to cut costs on your mortgage there are a number of ways you can change its existing structure and conditions to save big time. Here’s my top 4:

1. Refinance your mortgage – while interest rates are still low and banks compete for your attention, it’s a good time to refinance. If you haven’t set a fixed rate, now is a great time to do so – and you’ll save more over the next 2-3 years because fixed rates are better than variable rates at the moment.

2. Opt for interest only – servicing your loan’s interest rather than reducing your debt is an excellent way to rework your cash-flow, especially if you’re considering selling your home. You can generally switch to the interest only option for up to 5 years.

3. Offset your account – a 100% mortgage offset account is a great way to cut interest payments and save. It’s like a standard transaction account but the money in the account is used to offset your mortgage loan. Interest is then only charged on the net amount.

4. Credit smarts – use your interest-free period on your credit card to maximise funds in your offset account. Pay your bills and fixed costs on your credit card and have it automatically fully cleared at the end of each interest-free period.

If you’re considering any of these tips to help you save money, speak to me first. I can find a mortgage option that suits your needs exactly.





Great interiors guide: Choosing the perfect rug every time.
So you’ve got your colours and furniture sorted. Now how do you pick perfect rug to finish your room? Here are 3 foolproof steps to get you feeling comfortable under foot.
1. What's your arrangement?
Choosing a great rug begins with your room layout. Start by measuring the space you'd like to fill based on these popular configurations:
o Classic – If your sofa and chairs are up against the wall, your rug should be large enough to fit under the front legs of all pieces.
o Floating – Sofa and chairs floating in the middle of the room? Make your rug large enough to fit under all four legs of each piece of furniture.
o Dining – Measure the length and width of your dining table and add 2 feet on each side.
o Bedroom Layout – Extend a rug from the bottom 2/3 of the bed, place two runners on each side or a single runner at the foot of the bed.

2. Add texture
A room with a mix of different textures feels rich and layered so choose what works best to lift your space. Be guided by your existing furniture and aim for contrast.
o If your furniture is plush – contrast velvets, fluffy woollen or furry fixtures with flat-woven wool or cotton rugs like dhurries and kilims, or natural fibres like sisal, jute, seagrass or h**p.
o Sleek leather sofas and chairs – need a fluffier pile to add depth to the layout. Think tufted or s**g rugs, but beware of adding them to high traffic areas as they can be a tripping hazard.

3. What colour is your furniture?
A rug will read as one of the largest pieces of "furniture" in the space, so if your room’s got a lot going on, try a solid or neutral colour to dial things back a little – or make a basic sofa pop with a bright and playful patterned rug.
o Solid colour furniture – For foolproof colour coordination, match the secondary colour in the rug to your sofa or key furniture.
o Multicolour furniture – try matching your rug to the secondary colour in your room’s palette.

Looking to spruce up your home for spring? I can help you research what renovation mortgages would be optimum for you. Give me a quick call now.

28/09/2014

http://karayi.com.au/hints-and-tips-when-dealing-with-a-mortgage-broker/

Tips to find good mortgage Brokers

21/09/2014

Time to debate the consequences before it is too late
http://www.theage.com.au/national/field-of-dreams-chinese-buyer-swoops-on-farm-land-20140919-10jeeg.html

The deal was done within 48 hours. The Chinese billionaire had zeroed in on 54 hectares of farmland in Werribee, golden fields of canola in full bloom, just off the Princes Freeway, not far from where the suburban fringe begins.

17/09/2014

Not all Suburbs increased in Value in Melbourne. There are 30 Suburbs lost value.
ARMADALE 12 month growth: -14.55%
BOTANIC RIDGE 12 month growth: -3.92%
BRIGHTON 12 month growth: -4.09%
CARLTON NORTH 12 month growth: -0.55%
DOREEN 12 month growth: -5.68%
ELWOOD 12 month growth: 7.08%
EUMEMMERRING 12 month growth: -4.23%
JACANA 12 month growth: -1.54%
KEALBA 12 month growth: -5.26%
KINGSBURY 12 month growth: -1.15%
MCCRAE 12 month growth: -10.70%
MELTON WEST 12 month growth: -0.74%
NORTH MELBOURNE 12 month growth: -2.26%
NORTH WARRANDYTE 12 month growth: -1.70%
OFFICER 12 month growth: -14.82%
SAFETY BEACH 12 month growth: -2.83%
SELBY 12 month growth: -3.44%
SOUTH MELBOURNE 12 month growth: -6.99%
SOUTH YARRA 12 month growth: -4.76%
ST KILDA WEST 12 month growth: -18.20%
SUNSHINE NORTH 12 month growth: -0.76%
SUNSHINE WEST 12 month growth: -1.07%
TOORAK 12 month growth: -10.87%
TULLAMARINE 12 month growth: -1.89%
TYABB 12 month growth: -2.14%
WARRANWOOD 12 month growth: -1.99%
WATERWAYS 12 month growth: -1.42%
WATTLE GLEN 12 month growth: -4.48%
WEST MELBOURNE12 month growth: -10.19%
WILLIAMSTOWN 12 month growth: -1.81%

11/09/2014

MELBOURNE’S median house price fell in the first three months of the year, figures have revealed.

The city’s median house fell $46,000 (8.1 per cent) to $520,000 according to the latest report by the state’s Valuer-General.

The losses followed a significant 9.4 per cent lift in house prices reported by the Valuer-General in the final three months of 2013 — effectively meaning a 1.3 per cent gain across the six months.

A total of 118 suburbs went from rises in the back half of 2013 to losing ground in the first three months of this year.

South Yarra was the worst hit; the suburb’s median house price plummeted more than $200,000 from $1.3 million to $987,500.

But there was good news for Melbourne’s most affordable suburb. In Melton South the median price rose to $237,000, a roughly $7000 (3 per cent) lift on the December quarter.

The figures also show Melbourne’s median unit price fell about $20,000 (4.3 per cent) to $445,100.

The reduction in Melbourne values dragged the Victoria-wide median house price down $28,000 (6 per cent) to $440,000.

The country Victoria median house price remained flat at $300,000 for the first three months of the year.

The Valuer-General’s figures are considered the state’s most accurate source of property data, and median prices are calculated based on 93 per cent of all the sales recorded in the three months.

About 13,000 houses are believed to have been sold in Melbourne from January to March, about 2000 less than in the final three months of 2013.

However, RP Data Victorian spokesman Robert Larocca said the figures “don’t provide a good indication of the direction of the market”.

“Homeowners and buyers need to take into account the lack of auctions and volume in early January as that skews the results,” he said.
http://www.karayi.com.au

10/09/2014

Mortgage Offset accounts explained.

If you’re looking to shave years and thousands of dollars off your home loan, you might want to consider a mortgage offset account.

It’s an account that offsets the balance in that account against the balance of your home loan. This means you pay less interest on your home loan. Over time these savings can really add up and also reduce the time it takes to pay off your loan.

For example, if you have a home loan balance of $200,000 and have $10,000 in your offset account you’ll only pay interest on a home loan balance of $190,000.

Because home loan interest is calculated daily, if your offset account offers you 100% offset, every single cent in your offset account can reduce your home loan interest, every single day.

What to consider in an offset account
Not all offset accounts are the same, so it pays to check the details. Depending on the type of loan you choose, you might want to consider a full or partial offset.

A full offset means that 100% of the funds in your offset account will be deducted from what you owe on your home loan before interest is calculated.

A partial offset gives you a reduced interest rate on the part of your home loan equal to the balance of your offset account.

And while your money is working hard to reduce the interest you pay, your offset account will also be every bit as accessible as an everyday transaction account.

How many offset accounts can you have per home loan?
By having multiple offset accounts linked to your home loan, you can manage your finances however you choose while still benefiting from the interest saved by every single cent in your offset accounts. It’s a great way to save for a big spend such as a holiday, a new car, or even another property if you are thinking of investing.

Is an offset account only available with certain types of loans?
Check if your loan is eligible for an offset account by contacting your financial institution. The type of loan may have an impact on the type of offset account available to you (e.g. whether it offers full or partial offset). Fixed loans generally have more limited options in terms of offset accounts, although at the end of the fixed period you may have the option of 100% offset.

Who is an offset account best-suited to?
If you are unable to make additional or lump sum repayments on your home loan, an offset account can give you the benefits of interest-reduction while ensuring your funds are still accessible.

10/09/2014

How to keep a level head during property negotiations

If you are one of the thousands of potential buyers beginning the journey to home ownership this spring, you may be wondering how to keep a level head during this notoriously stressful period.

While a property purchase should be a purely rational decision, the reality is this is not always the case. As a prospective home buyer, you are likely to go through a range of emotions during the purchasing process. You might want to find the ‘perfect home’ for your family, you may fall in love with a property on sight, or you could have a strong vision in your head of what your next home will look like.

There are endless ways your emotions can come into play when you are looking to buy a home. So, are you leaving your emotions at the door?

A research project* was undertaken to examine the extent that emotions can influence home buyers.

Interestingly, the research found that while 75% of property buyers claim to be rational rather than emotional buyers, in reality, emotions have a significant influence over their final purchasing decision.

The most common emotional characteristics that influence home buyers are:

liking the feel/vibe of the property (37%)
an instant attraction to the property (22%)
suiting the personality of the buyer (21%)

What’s also telling are the top three most influential emotional characteristics between different types of buyers:

subsequent home buyers are more likely to be influenced by having a vision of what they wanted before they moved in (22%)
first home buyers are more likely to be influenced by the décor (19%)
investors are more likely to be influenced by the place making them feel successful (17%)

How to keep your emotions in check

While you can’t always exclude emotions from the property purchasing process, it is important to always consider your original objectives and keep in mind your original budget.

Given that buying a property could be one of the biggest financial decisions you’ll ever make, it’s vital the final purchasing decision is ultimately based on a rational judgement – not your emotions.