Sofie Chapman - Mortgage and Finance Broker

13/09/2024

How can Gen Z afford to buy a home?

Entering the property market can be daunting for people of any age, but if you’re a member of Generation Z, it can be especially confronting. Gen Z typically refers to those born between 1997 and 2012, meaning the oldest Gen Z’ers are just now heading into their late 20s, and staring down the prospect of owning a home.

However, it’s not all doom and gloom for Gen Z (and homebuyers in general). First homebuyer government initiatives can help make homeownership more achievable, and there are strategies young people can implement to help them own a home sooner. If you’re a Gen Z’er who doesn’t think they’ll ever own a home, it’s time to prove yourself wrong.

4 steps to break into the property market

Step 1: Get your savings plan in place

The key to homeownership is having the money to afford a deposit and mortgage repayments. A good rule of thumb to help with saving this money is the 50/30/20 Rule:

50% of your after-tax income is for necessities- rent, groceries, insurance etc.

30% is for your wants – day-to-day items such as indulgent purchases, entertainment, clothing, etc.

20% is for your financial goals, whether they be reducing debt, saving for a home, or building up an emergency fund

Step 2: Consolidate and pay off your existing debts

Another financial hurdle Gen Z must contend with is student debt. Gen Z and Millennials make up 66% of those with HECS HELP loans, and while these loans are technically interest-free, they are still vulnerable to indexation, meaning that recent HECS HELP loans have ballooned due to 7.1% indexation. Debts such as student loans can negatively affect your borrowing capacity. If you’re looking to purchase your first home, paying off your student debt and any other debts you may have, such as car loans or credit card debts, should be near the top of your to-do list. This is likely to improve your credit score, making you a more attractive borrower to lenders.

Step 3: Get purchase-ready

So, you’ve saved up enough for a deposit and you’re debt free, great! But a mortgage is a long-term commitment, and you need to make sure you’re in a strong financial position so that you can meet your repayments and cover any other long-term costs such as home maintenance and utility bills.

Plus, it’s worth remembering that whilst the interest rate you secure initially may be manageable, it may change with time. This is of course taken into account by the lender before they approve you for a loan and is a big part of their commitment to responsible lending, however it’s also helpful to have a mortgage broker on hand throughout the life of your loan in case your repayments increase slowly but surely, or your circumstances change. Your broker can assess your repricing and refinancing options and may be able to secure you a lower rate or a different loan that better meets your needs.

If you’re planning on bidding at auction, it is wise to secure pre-approval beforehand. Pre-approval provides you (and vendors) with an indication of how much you’re likely going to be able to borrow, it demonstrates to vendors that you’re serious about your intentions to purchase, and it can give you negotiating power and advantage over other potential buyers who have not yet secured financing.

Step 4: Seek help

At the end of the day, you’re still new to the homebuying process, and nobody expects you to know the ins and outs of the mortgage world. That’s where having someone like myself, who is experienced in the home buying process, on your side comes into play. I can present you with a wide range of loan options, walk you through the loan application process and do the heavy lifting for you, equip you with the knowledge and tools you need to make informed decisions and help you to secure a finance solution that’s right for your homeownership goals.

If you would like to discuss how you can get into the housing market call me on 0402 229 462 or email [email protected]

05/09/2024

For many people, the process of selecting and purchasing a new property is both exciting and stressful. But for some, it can be more time-consuming than expected and even intimidating.

There are several variables and unknowns – such as the budgets of other buyers and the seller’s expectations – that can lead some buyers to spend more time, energy and money on the transaction than anticipated.

For property buyers seeking a stress-free, seamless experience and best possible outcomes, partnering with a trusted Buyer’s Agent is not just beneficial – it’s essential.

If you would like help finding a trusted buyers agent, please reach to me and I will get you in contact with an experienced, highly respected Buyers Agent to help you find your ideal property.

[email protected]
0402 229 462

28/08/2024

"I have a home and I want to buy an investment property. My friends tell me there are great tax advantedges to having an investment property. Why is debt recycling important for me to understand?"

Debt recycling is a strategic wealth creation strategy involving converting non-deductible personal debt into a separate investment loan that will help you save some tax through tax deductions. Specifically, it works by: Paying down your non-deductible home loan using extra funds. In today's post we look at 'good' debt and 'bad' debt and how structuring your loans the right way can save you $$$$

To see how debt recycling can help you, please call me on 0402 229 462 or email me [email protected]

Debt recycling is a financial strategy that can help you transform bad debt into good debt, boosting your wealth and enhancing your financial future. This article explains the concept, its benefits, risks, and how it might apply to your specific situation. Understanding Good and Bad Debt Good debt i...

22/07/2023

I'm very privledged to be invited to speak at the upcoming Wealth Builders Summit on Friday 8th September.

If you want to gain insights, inspiration, and practical strategies that you can apply to your own wealth-building journey, you need to come along and be a part of this day.

Tickets are limited and can be purchased through this link.

Join this one-day summit and gain insights, inspiration, and practical strategies that you can apply to your own wealth-building journey.

18/07/2023

Today we farewelled a great man, Mick McClure. It's sad to say goodbye but you left a great impression on my life. Every time im stressed out about my work, I remember your wise advice 'we are not performing life saving surgery' and big calm feeling of relief comes over me. As your daughter said, you knew how to turn big problems to small problems and those small problems don't matter in the big scheme of things.
You were a true gentleman Thanks for the great memories and giving me my Buyers Choice family.
Cheers Mick!!!

29/01/2023

Welcome to 2023!!! It's great to be back from break and in full swing. So much so I spent the last 2 weeks of break working on loan applications for purchases. People are still buying and the property market is still moving. If a goal of yours is to buy a property this year, give me a call on 0402 229 462 or email me [email protected]. I will help you navigate the market, interest rates, loan structures and process. A personal goal of mine is substantially add to my portfolio this year 2-4 properties all depending on the ROI.

Let's achieve our goals together and make 2023 the best year yet!

Your decision to purchase a new house is a significant life event, and the thought of becoming a homeowner might be a little intimidating. However, homeownership brings with it several advantages, including the freedom to design your home as you wish, the capacity to keep a pet without needing the a...

18/12/2022

In today’s market, young first-time homebuyers may find themselves tangled in a web of student debt, rising home prices, and stringent mortgage requirements. As a result, some assistance from parents has become more common. Almost a quarter of homebuyers ages 22 to 30 reported that cash gifts from family and friends were the source of their down payments, according to the National Association of Realtors, with another 5% saying they had received loans from relatives or friends.

Having the means to help your grown children buy a house or an apartment is a blessing and a luxury. But before you sign on the dotted line, consider how best to do so.

If you would like to discuss how you can help your child get into the property market or if you are a first home buyer and not sure how to ask your parents for assistance, please give me a call on 0402 229 462 or email [email protected]

In today’s economic climate, it’s increasingly common to help your child with their first home. In this article, we’re going to look at three options to help you do this. Why not take a look at the pros and cons of each and choose the one that’s the best fit for you? 1. With a cash gift A lu...

14/12/2022

When you invest, the profits or returns you make may become part of your income for tax purposes. Many expenses you incur relating to your investments are deductible – for example, interest on money you borrow to buy a property or shares.

Australian residents for tax purposes are taxed on their worldwide income. There are tax implications you need to be aware of when you obtain, own or dispose of investments regardless of if they are in Australia or overseas.

Understanding how tax works for your investments helps ensure you don't pay more tax than you need to.

This article provides some guidance on how tax is calculated for different investment types and is not advice. Please talk with your accountant for advice particular to your personal circumstances.

Lower tax on your investments can help you reach your financial goals sooner. But don’t choose an investment based on tax benefits alone.   How investment income is taxed You need to include investment income in your tax return. This includes what you earn in: interest dividends rent managed fund...

12/12/2022

Cheap quick renos....every renovation you do doesn't have to look like an episode of The Block. Every renovation has a purpose. I did a quick 5 week internal reno of an asbestos filled, vandalised, stinky smelling, partly burn't out dump. End aim is to knock it down and build a dream home in 5 yrs but needed to make it livable to a decent standard.

Many people told me I was being silly and wasting money, but I have a big goal in mind. Some of these people have seen the reno now and marvel at the transformation.

If you want to do a quick reno but don't have much funds, here are a few quick hacks I swear by:

1/ paint all the walls a warm white
2/ invest in warm lighting
3/ old floor boards polish up a treat
4/ Get 3 quotes for every trades person, or call me, I share my tradie contacts details with all my clients
5/ buy in the sales and buy online - hint in 2 weeks there will be massive sales worldwide
6/ utilise existing plumbing. ie I converted a shower that was in the hallway (?!?) into a laundry space
7/ keep the existing kitchen cupboards and give them a coat of paint

These are tips for non high end renos. If you are renovating in a high end area you need to buy quality and invest big dollars.

Summer break is here. If you are thinking of doing some home renos in your time off, feel free to give me a call. I can help you will funding your project and tips that can save you big $$$$

0402 229 462
[email protected]

06/12/2022

It's the final cash rate for the year and unfortunately, the Reserve Bank of Australia (RBA) Board has not helped to keep the mood light, nor has their December cash rate decision been music to our ears.

It was announced today that the cash rate has been increased yet again, this time by 25 basis points, making the official cash rate 3.10%.

This hike is significant for two reasons:

- It marks the eighth cash rate increase in a row

- It has occurred in the month of December

Historically, the RBA Board has rarely increased the cash rate in December, with the two most recent December cash rate rises occurring in 2009 and 2003. This unusual (yet not all that surprising) decision emphasises just how determined the central bank is to return inflation to target as quickly as possible.

So, if you’re feeling a little concerned about how another interest rate rise may impact your ability to make your mortgage repayments, especially given that many of us are spending more than usual due to the holiday season, why not reach out to me for some guidance and reassurance. I can discuss home loan repricing and refinancing options with you, and provide knowledge and perspective amidst this rising interest rate environment.

0402 229 462
[email protected]

Mortgage holders will be feeling the squeeze this Christmas with the Reserve Bank delivering another 25 basis point interest rate hike. The final interest rate lift for 2022 takes the cash rate to 3.1 per cent – the highest level since 2012 – and marks the eighth hike in a row. The RBA has been ...

22/11/2022

Do you ever feel like you’re trying so hard, but you’re just not making progress with your money? Or like you’ve been working your butt off, but when you look around, you never have much to show for it?

Here’s the thing: If you don’t set goals for your money, you’ll probably keep feeling like all you’re doing is spinning those wheels. If you want to finally get moving, it’s time to make some financial goals.

Financial goals will help you change your mindset, your habits and your life.

When you’re intentional with every dollar you have, every dollar will stretch further. That means you get to do more of the stuff you want to do and plan for the things you’ll do in the future.

If you want to do more than you ever thought possible, go on and set some goals. Decide what you want your future to look like, and figure out what you need to do today to make it happen.

Saving a few dollars today can add up to a lot of money later on – cash that you can use to start investing, pay off your debt repayment, or save for retirement. But to ensure you have a clear direction and achieve what you want, you need to start setting financial goals – that is, if you haven....