Everton Mortgage Brokers

21/01/2022

If you’re buying property for the first time, you may be a little confused about which professionals you’ll need on your team.

Surrounding yourself with a network of supportive experts could help make the buying process a lot smoother and stress-free.

Here’s who you are likely to encounter and how you can take advantage of their knowledge base.

Real estate agent

Hired by the vendor (or seller), the real estate agent helps market the property, answers questions from prospective buyers and oversees price negotiations. Their goal is to get the best result for the seller.

Unless you’re working with a private vendor, liaising with a real estate agent is a given.

Valuer

Valuers inspect properties and give an independent valuation of their market value. This is based on the property, location and current market.

Getting a valuation is an important part of the loan application process. Lenders often engage an impartial valuer to assess the property, so that they know what loan amount may be warranted.

Lenders

Most people need to borrow money from a lender, or financial institution, to fund their property purchase.

It might be a major bank, second-tier or non-major, or a specialist lender for more complex funding requirements.

Conveyancer

The legalities of a property purchase are taken care of by a licensed and qualified conveyancer. If they are a solicitor, they may also offer legal advice.

Your conveyancer will prepare the paperwork to ensure transfer of ownership meets any legal requirements in your state or territory.

Building and pest inspectors

The last thing you want is to discover structural issues or unwanted guests post-purchase. Enter your building and pest inspector.

These professionals inspect the property and look for any issues that could cost you money in the long run.

If the property is still your dream home but needs some work, the building and pest report can prove to be a valuable bargaining tool.

Insurance companies

Buying a home or investment property is a high-value purchase and long-term financial commitment, so you need to think about insurance.

Insurance companies can help with all sorts of cover, from mortgage protection to property insurance.

Often finance brokers can line you up with insurance too, or put you on to a reputable insurance broker.

Finance broker (that’s me)

I can help you with finding the mortgage to most suit your unique financial circumstances, to overseeing the loan application process.

I will act as a liaison between you and the lender, negotiating a loan product that matches your needs.

Not only doing the legwork and ensuring your loan is processed as smoothly as possible, I’ll also be there to guide you through the entire process.

I can also assist with all sorts of things like insurance, renovation finance and debt consolidation.

Looking to get into the market?

The first step is to talk to us about your finance needs.

We’ll explain your borrowing capacity and organise pre-approval on your home loan. That way, you’ll be ready to negotiate with confidence when you do come across your dream home. Get in touch today!

13/02/2020

EXCITING NEWS FOR FIRST HOME BUYERS

There’s nothing quite as exciting as receiving a shiny set of keys to your very own home. The thrill of knowing it’s all yours. The freedom to be able to do what you like with it. Nothing compares!
If you’re an aspiring first home buyer, the new First Home Loan Deposit Scheme may help you reach your homeownership goal sooner. Here’s what you need to know.
The First Home Loan Deposit Scheme explained
On the 1st January 2020, the Australian Government launched the First Home Loan Deposit Scheme. It provides a guarantee allowing eligible first home buyers on low and middle incomes to buy a home with a deposit of as little as 5 per cent (subject to their lender’s criteria).
Potential applicants can choose from a panel of participating lenders, which includes major banks and smaller lenders.
How many people can access the Scheme?
The scheme is capped at 10,000 places this financial year. A further 10,000 places will become available from July 2020.
In January, lenders registered 3,000 potential first home buyers under the Scheme. From the 1st February 2020, 7,000 additional places became available.
Who is eligible?
Key eligibility criteria include:
An income test (your taxable income for the previous financial year must not exceed $125,000 for singles or $200,000 combined for couples)
You must not have owned a property previously
You must be an Australian citizen
You must be aged 18 or over
You must have a 5 per cent deposit saved (if applicants have 20 per cent or more saved, they will not be eligible)
You must intend to live in the property (and move in within 6 months of the date of settlement or, if later, the date an occupancy certificate is issued). You must continue to live there for as long as your home loan has a guarantee under the Scheme.
You can check whether you’re eligible using this handy online tool. You can also find further information about eligibility here, or better yet, speak to us and we’ll run through the eligibility requirements with you.
Property requirements
To be eligible, the property you intend to buy must also meet certain requirements. For example, it must:
Be a residential property (as defined under the Scheme)
Have a sale price under the price cap for the location (for example in Melbourne the price cap is $600,000, while in Sydney it’s $700,000). You can find more details about the price cap values here.
Be bought by an eligible first home buyer under the Scheme, who at settlement date will be the sole registered owner/s of the property.
Be an established dwelling or a new-build dwelling purchased under a house and land package, a land and separate contract to build a home or an ‘off-the-plan’ arrangement that is financed under an eligible loan from a participating lender.
You can find further information about property requirements here.
Are all home loans eligible?
No. There are certain rules about the type of home loan which can be accessed under the Scheme.
For example, you must take out a principal and interest loan (exceptions may be granted to borrowers constructing a new dwelling) with a term of 30 years or less (with no changes to loan terms). You must use all of the proceeds for the purchase (or towards the purchase and improvement) or construction of the eligible property, and your loan commitment must not be less than 80 per cent of the value of the property, nor more than 95 per cent.
Talk to us about your plans and we’ll explain the home loan requirements.
Next steps
Ready to buy your first home in 2020? We’re here to help!
If you’d like to find out more about the First Home Loan Deposit Scheme and other incentives available to you, please reach out and give us a call on 0418744745. We can walk you through the eligibility requirements and lodge your application with a participating lender on your behalf.
Remember, now is a great time to buy property. Housing affordability has improved in many markets, some lenders have dropped their mortgage rates and home loan servicing rules have relaxed. Start 2020 with a BANG – with a property purchase!

11/07/2019

Property investor profiles – what type are you?

In Australia, it’s possible for just about anyone with a deposit to invest in property, whether you are a low-income earner on a tight budget, or a well-off with loads of disposable income. Interest rates are very low at the moment and home prices are more affordable than they’ve been for a while. So, if you’ve been thinking about property investment, it may be a good time to get started.

Rentvestors
Rentvestors are often motivated by a desire to maintain their current lifestyle, while still wanting to get on the property ladder. The solution? To rent where they want to live and invest in more affordable suburbs elsewhere.
This type of investment strategy can help you to grow a deposit to enable you to buy a home where you’d prefer to live later, but talk to a professional financial planner to ensure it will work for you. Capital growth is an important factor in Rentvesting, so it’s also important to research your property investment carefully and locate an up-and-coming suburb where this is more likely to happen quickly.

‘Mum and Dad’ investors
This is a common way of describing a conservative type of investor. ‘Mum and Dad’ property investors will typically have paid down their family home loan and be ready to access the equity to build more wealth for the future. They’ll often be growing their portfolio slowly and want to have only one or two investment properties in addition to the family home.
Each investor’s strategy depends on their goals and how comfortable they are with risk. If you are a conservative investor, you may opt for ‘set and forget properties’ that are easy to maintain and likely to deliver moderate long-term capital growth. This approach helps to protect your capital while making “extra” money.

Short-term investors (property flippers)
Buying, renovating and selling quickly is the name of the game for flippers. The idea is to buy a property in need of some TLC, but no major structural work. This takes careful research and it pays to have a team of builders and property inspectors to help you make the right property purchasing choices.
Property flippers manufacture capital growth by renovating. For this type of strategy to work, you need to be willing to invest considerable time and energy into the project and have a very firm grasp of both your budget and building costs.
It’s important to note that when property prices are falling, flipping can be a very risky business. If you fail to get your budget right, it could be very easy to end up with a property that’s worth less than you spent on buying it and renovating it.
Investors who do it as a business (long-term)
This type of property investor takes a professional approach and work as though they are operating a business. They often have a significant, diversified portfolio that includes both residential and commercial properties, and plan to continually purchase more properties.
Sophisticated investors are up to speed with things like value movements in the property market and maximising their tax advantages. They usually seek professional advice from a qualified accountant to support and inform their activities and decisions.
Investors who do it as a business buy, when home values fall rather than allow market variations to keep them up at night. They are usually careful to set up financial buffers to protect themselves throughout the peaks and troughs of a property cycle.

Get a professional broker on your team
No matter what approach you take to property investing, the right finance solution is critical to your success and can potentially make a big difference to the profit you make. We’re here to ensure your mortgage and loan structure is suitable for your investment strategy, personal financial circumstances, needs and goals. Feel free get in touch on 0418744745 to find out more.

16/08/2018

Mention property investment and most people think of a conventional house or apartment. However, there are other types of property investment opportunities which may appeal to those with a little more imagination!
In this article, we share some out-of-the-box ideas you may not have considered. Remember, your mortgage broker can assist with finance for all different types of property investments, including those with a twist.
Car parking spaces
In capital cities such as Sydney and Melbourne, car parking spaces in the inner-city are often in high demand. That, coupled with limited supply, makes for an attractive investment opportunity.
The potential benefits of investing in a car parking space are that you can reap an attractive rental income, without incurring costs traditionally associated with residential investment properties.
Prices for car parking spaces vary. However, generally speaking, they tend to range from $40,000 to $130,000 in inner-city locations (sources: www.findacarpark.com.au and https://www.commercialrealestate.com.au).
To give you an idea of the returns, a lock-up garage parking space in Lonsdale St, Melbourne, could bring in $922 a month. Likewise, a secure car space on Clarence Street, Sydney, could rent for $1018 a month (source: www.spacer.com.au).
Tips
Understand the potential costs involved in owning the space (for example council rates, strata fees and congestion levies)
Find out whether any planned developments could affect your investment
Make sure there are no restrictions about renting out the space before proceeding.
Converted or quirky properties
If you’re looking for an investment opportunity that’s outside the norm, how about a converted property, or one you could transform? As an example, check out this former fire station in Petersham, Sydney. It was converted into a private residence and is now set to become a beautiful boutique hotel.
Another example is this former brewery turned boxing gym, school, military drill hall, Masonic lodge, girl guides hall, antiques shop, and café in Campbell Town, TAS. It could be yours for $800,000 and has potential for a creative developer. On the other end of the price range is this former Masonic lodge in Woomelang, VIC, available for a mere $49,000.
If you’ve fallen in love with the tiny house craze, you may like to look for a smaller property. This former Anglican church, for example, offers plenty of charm in Kempsey NSW.

Tips

If you’re converting commercial into residential, make sure there are no planning or zoning constraints
Research the tenants and end-market you’re trying to attract – not all converted properties will offer wide appeal
Be sure to factor the costs of converting the property into your budget.
Mixed-use properties|
Mixed-use properties are zoned for more than one purpose. Common examples include retail properties with apartments upstairs, converted warehouses with a residence, or freestanding houses with a shopfront.
As an investor, mixed-use properties can offer income streams from both residential and commercial tenants. They also help you diversify your investment portfolio, as you’re investing in two different markets simultaneously. If one market falters, you still have the other to fall back on.
Tips
Consider your plans for the property and make sure it is zoned and fit for your purpose
Keep in mind you’ll require a commercial loan rather than a residential one, which may come with a higher interest rate and shorter loan term.
Talk to your broker about your plans today
If you have an idea for an unusual property investment, it’s important to talk to your mortgage broker early on. They’ll look at the numbers and help you decide which type of finance is right for you. Remember, we offer advice on all types of loans for property investment, so please get in touch on 0418744745

Now, finding car parks is easy and convenient as you can use Findacarpark.com.au website to save your time. We are a number 1 private and commercial parking website in Australia. It serves people by finding their parking lots in every states and suburbs of Australia.

12/04/2018

Property Investment Jargon Explained
Are you new to the world of property investing? Does the jargon leave you feeling confused? Well, fear not, investor-to-be! We’ve put together a comprehensive list explaining the most difficult terminology. By the end of this article, you’ll sound just like a seasoned property investor when conversing with your friends at the dinner table, and maybe even feel inspired to buy an investment property of your own!
Negative gearing

Put simply, negative gearing is when the costs of owning a property - like the interest repayments, rates and maintenance costs - exceed the income you receive. Say you earn $25,000 in rental income and your expenses add up to $35,000, the property would be negatively geared to the tune of $10,000. This could potentially provide a significant tax break, which is why negative gearing is a popular strategy with property investors.

Positive gearing

As you may have guessed, positive gearing is the opposite of negative gearing. It’s when the income you make on a property is greater than the expenses. This could provide you with an income, however it should be noted that you will most likely be required to pay tax on this income. Another term for this is ‘cash-flow positive’.

Depreciation

‘Depreciation’ is a term used to describe the decrease in value of an asset over time. With a property investment, it includes items like stoves, carpets and hot water heaters. Each of these items depreciates a little bit each year according to a Depreciation Schedule you have drawn up by a Quantity Surveyor, and these amounts may potentially be claimed back as a tax deduction.

Capital gains

A capital gain is the amount by which the property increases in value, relative to what you paid for it. A capital gain is usually realised when you sell the property. However, if your property goes up in value, you can often borrow against the capital gain (also known as accessing your equity) by asking a lender to value the property and refinance your loan.

Capital Gains Tax

Capital Gains Tax is the tax you pay when you sell an investment property that has gone up in value since you purchased it. You need to report capital gains (and losses) in your income tax return.

Equity

Equity is the proportion of the property that you own. So, if the property’s worth $600,000 and you owe the bank $100,000, you have $500,000 in equity. Equity can be used in a variety of ways, for example you can potentially borrow against it to buy additional properties or fund renovations.

Rental yield

The rental yield refers to the money your tenants pay you. Rental yield is calculated as a percentage of the property’s value. You can calculate the gross rental yield by multiplying the weekly rent by 52 weeks, divided by the property’s value.

LVR

LVR stands for loan-to-value ratio. Essentially, it’s the percentage of money you borrow for a loan, compared to the value of the property. Lenders generally like to keep the LVR within 80% - so you would need a 20% deposit. If you don’t have a 20% deposit, you will be subject to lenders’ mortgage insurance which protects the lender if you default on the loan. This can be expensive.

We hope you’re feeling more comfortable with the lingo now! Our role as your mortgage broker is to advise you how to structure your finance according to your property investment strategy, and find you the right investment loan for your specific financial circumstances and goals. So, if you’re thinking about making a property investment, please call us today on 0418 744745!

This article provides general information and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or loan product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loan applications are subject to lenders’ terms and conditions, and eligibility criteria. Lender fees and charges will apply

22/01/2018

What to look for in an investment property

Buying an investment property can be a clever way to build wealth for your future. There are government incentives that make this form of investment great for mum and dad investors - such as the potential to claim back losses as a tax deduction.
So, how do you go about finding the right property for your needs, particularly if you’re not an experienced property investor? In this article, you’ll find some insights about what to look for in an investment property. And remember, when you need the right finance for your investment, we are here to help so give us a call!

Capital growth potential

Capital growth is the increase in value of a property over a period of time. Investors use a range of strategies to build wealth, and looking for the properties that are most likely to experience significant capital growth, is often high on their radar. Be sure to choose an investment property that is close to amenities such as schools, shopping centres and public transport – when an area is experiencing economic growth, these properties will be in the most demand.

Rental returns

Some investors choose to focus on properties with a high rental yield, rather than just looking at capital growth potential. The rental yield is the rate of income return compared to the costs associated with the investment property. It’s typically expressed as a percentage, and may be calculated as a gross or net figure.

Low maintenance costs

As an investor, it’s wise to opt for a low-maintenance property. They not only cost less to keep, but they’re less hassle too. Units can be easier and cheaper to maintain than old houses for example, but keep in mind you’ll most likely have to pay body corporate fees.
Choosing the right investment property requires careful research and planning. Luckily, one area you don’t have to worry about is finding the right investment loan for your specific needs. We can take care of finding you a loan product that matches your financial circumstances, while working with your investment goals. Please call us today on 0418 744745!

08/01/2018

Good News For Queenslanders

The closing date for the $20,000 Queensland First Home Owners' Grant has been extended to 30 June 2018. If your contract to purchase or build is signed between 1 July 2016 and 30 June 2018, you may be eligible to apply for the $20,000 grant. If you would like any more information please feel free to call us on 0418744745.

14/12/2017

Christmas is just around the corner and isn’t it a wonderful time of year? It’s a time for family and friends, a little self-indulgence, of recognising how hard you’ve worked all year and rewarding yourself for your efforts. If you’ve been contemplating a property purchase, why not make that dream a reality? We can help you secure the finance you need, so please get in touch!
Interest Rate News

Thankfully, there was no pre-Christmas surprise this month from the Reserve Bank of Australia. The board decided to leave the cash rate on hold at 1.5 per cent. The central bank’s board will next meet in February 2018.

Property Market News

On the whole, national dwelling values were largely steady in November. Again, Melbourne seems to be proving more resilient than Sydney, with dwelling values up 0.52%. In contrast, Sydney’s housing market saw prices fall -0.72% in November. Canberra’s dwelling values rose by 0.86%, while Hobart experienced 0.64% growth. Things are looking up for property owners in Perth, where values rose by 0.21% in November. The city recorded the first rolling quarterly capital gain since late 2014 (up 0.3% in the three months to November). In Brisbane and Adelaide, there was less fluctuation (0.07% and 0.01% growth respectively). Darwin, like Sydney, experienced a fall in property values – the month-on-month change was -0.42%.

In the week ending December 3, there were 3,276 auctions held across the combined capital cities. According to CoreLogic, the preliminary clearance rate was 63.5% - up from the previous week’s clearance rate of 61.6%. Auction volumes remain in line with last year’s figures, but this time last year the clearance rate was much higher, at 72.3%.

Melbourne and Sydney’s clearance rates picked up compared to previous weeks. In Victoria, there were 1,800 scheduled auctions and a clearance rate of 67%. New South Wales held 1344 scheduled actions and cleared 62% of the stock. Meanwhile, the ACT had the highest clearance rate – 76% on 105 scheduled auctions. Tasmania only held 11 auctions and cleared 67% of stock, while South Australia had 148 scheduled auctions and 65% of properties sold. In Western Australia, 61 properties went to auction and 46% went under the hammer. Queensland held 395 auctions and the Northern Territory had 17. Both had clearance rates of 36%.

As the sun sets on 2017, we’d like to take the opportunity to wish you a safe and happy festive season. Remember, now is a great time to purchase a new property for the New Year, or to re-evaluate your mortgage. If you’d like advice about finding a mortgage that suits your financial circumstances and plans, we’d love to help! We’ll do the hard yards for you, so that you can concentrate on the fun stuff this summer, like playing beach cricket and being with the family. Here’s to an exciting 2018 – hopefully one that includes an exciting new property purchase!

16/11/2017

How to beat the urge to splurge
Christmas is just over the horizon and decorations are already starting to appear at the local shops. It’s a time of year where it’s almost common practice to splurge! Marketers are all working hard to encourage you to buy, buy, buy and you may have already picked up a few things for yourself and to put under the tree for family and friends.
It’s easy to resort to “retail therapy” when you need a bit of a pick-me-up, and it’s also easy to overspend on gifts amidst all the excitement of Christmas. But what will really give you a thrill and a sense of satisfaction is reaching your savings goals and using the money to buy an asset that will help you grow your nest egg even further (like a house). Here are our tips for beating the urge to splurge this Christmas.

Establish a budget

The most valuable thing you can do for your bank balance this silly season is to create a budget and stick to it. This is especially important if you are buying Christmas gifts.

Write down all of your income and expenses and set an amount for regular savings. Once you have a budget in place, you’ll know your spending limits, and how much you can afford to spend on things like Christmas presents or summer holidays. You’ll also be able to establish good savings habits – something that’s vitally important when the time comes to apply for a home loan. When creating your budget, set yourself short-term savings goals to stay motivated, plus long-term goals to set your sights on where you want to be financially.

There are plenty of online tools to help you create a budget. You could use a simple Excel spreadsheet or a budgeting app. Wally, for example, allows you to manually log your expenses and store pictures of receipts in a virtual budget journal. The app alerts you when you hit your savings goals or when a bill is due. TrackMyGOALS allows you to set, plan, track and manage your savings goals (we’re thinking a new home could be a goodie!).

Think outside the box

If you want to avoid splurging, you need to think outside the box and make a fun game out of finding ways to save money. The key is to challenge yourself to find ways to feel good without buying stuff you don’t really need. If you’re feeling blue and needing some “retail therapy”, do some exercise instead or head to your local park. The endorphins and fresh air will do you a world of good!

When it comes to Christmas gifts, simple home-made presents can potentially save you a load of cash. Get creative! Make some yummy treats and jazz them up with some pretty wrapping. Get a professional photo done and buy some frames in bulk at wholesale prices. Don’t be shy about ‘re-gifting’ anything you don’t need, just give it to someone else who may enjoy it. The options are endless!

Avoid temptation

It’s important to know your spending triggers and to keep them in check to avoid impulse shopping. If you’re a fan of online shopping and find yourself gravitating towards those advertisements on Facebook, perhaps take a hiatus from social media during the silly season and ‘unlike’ your favourite shopping sites.

Similarly, if you find yourself being tempted to buy things for yourself when you’re out and about buying Christmas presents for your family, it’s wise to avoid shopping centres. After all, if you don’t see those killer shoes in the shop window, you won’t know what you’re missing out on. If you have to go out to buy Christmas gifts or essentials like groceries, write yourself a shopping list and take cash with you. By keeping your credit cards safe from yourself (and locked in a drawer at home), you’ll spare yourself a spending hangover.

If you’d like to explore your home loan options, we’d love to hear from you so feel free to call us on 0418744745. Even if you don’t have a huge deposit saved, we may still be able to help you, so please don’t hesitate to get in touch. Remember, you’ll need a good savings history if you are planning to buy a property, so resist the urge to splurge this Christmas! Make some savings goals, change your spending habits and set the wheels in motion for a splurge-free future today!

07/11/2017

At its November meeting today, the Reserve Bank of Australia has kept the official cash rate unchanged at 1.5 per cent for the 15th consecutive month!

What else is happening in our markets?

Future rate movements: Some analysts are speculating we will see our next rate cut in 2018, following recent declines in auction clearance rates, and indications of overseas investors withdrawing from the market.

Interest only loans: Figures released last month revealed our major banks cut back interest only lending by $4.5B over the past year. We know which lenders are still offering these loans, and which ones have the most competitive rates, so get in touch if you need help locating the right product for your needs.

Owner occupier loans: There are some very competitive rates available for those looking to buy their own home right now. Some lenders are also offering special deals to encourage first home buyers to get into the market. Talk to us if you’re looking to put a foot on the property ladder this spring – we’d love to help!

Property market activity: In the last week of October, the combined capital cities saw the number of auctions reach a new year-to-date high, with a total of 3,690! There are plenty of properties available, so please contact us on 0418744745 now to arrange pre-approval on your loan.

Regards,

Havelock Everton
Credit Representative 386470