05 Dec 2017
Welcome to our December Newsletter
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? Talk to your mortgage broker about the right finance for your needs today.
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, talk to your mortgage broker. They’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!
Unique Home Decoration Ideas for Christmas
Christmas is such a special time of year! You can feel the magic in the air at shopping centers as the decorations come out, or when you’re driving around and notice people transforming their homes into a wonderland of lights. If you’re also looking to fill your home with holiday cheer, here are some unusual festive home décor ideas you’re going to love. And remember, if you need finance for a really big gift (like the kind that’s just too large to wrap), your friendly mortgage broker is here to help!
Create an unconventional tree
If you feel like a change this Christmas, why not invent your own tree? Pinterest has plenty of great ideas, like dressing up a ladder as a Christmas tree or using driftwood to create a rustic-looking tree display. Check out the effect here.
Go big with your light display
Instead of spending a fortune on the electricity bill with miles of rope lights, why not turn your pad into a light show spectacular the easy and inexpensive way, with cool options like Target’s Snow Flurry Lightshow Projector, which blasts a bright swirling display of snowflakes onto your home. Otherwise, you could opt for something more subtle. For example, you could line walkways with luminary bags or lanterns to create an ambient effect. Here’s some inspiration.
Make your own snow globes
If you have small children, they are going to love this one! DIY snow globes are easy to make and a great way to create festive cheer. All you need is a small glass jar, a plastic figurine of something Christmassy, glycerin, glitter, water and glue. Simply glue the figurine to the inside of the jar lid, fill it with water and glycerin, add a couple of teaspoons of glitter, screw the lid back on and glue it down if necessary. There you have it, Christmas cheer in a jar! You can even make a winter wonderland terrarium by adding small twigs, pinecones, and cotton wool to the jar and leaving out the water.
Make merry in the throne-room
Why not dress up your toilet with Christmas cheer and give your guests something to talk about? You could make a Santa toilet lid cover and toilet mat, or if you really want to impress them with your Christmas cheer, invest in an LED toilet bathroom night light like this one, available on eBay. It’s motion activated, so your guests won’t have to stumble around in the dark looking for the light switch.
Jazz up your front door
Have you heard of Christmas front door covers? We hadn’t either, but apparently you can give your house a Christmas facelift with a front door mural. There are some really high-quality designs available, and what’s great is that they are removable and reusable. Banners come in all different colours and feature everything from the big man in red to Christmas trees and nativity scenes. Click here to check them out.
What else would be fun for Christmas?
How about a new family car, boat or a jet-ski? Buying that dream home or investment property you’ve always wanted would also be a great reason to celebrate with your family. Your local mortgage broker is here to help you have yourself a merry little Christmas indeed, with a loan for a new home or investment, or tailored finance to fit your other purchasing needs.
What insurance do you need to know about when you buy a property?
Many people begrudge paying for insurance, but the peace of mind that comes from knowing you, your family and your home are protected against unforeseen events is priceless! Insurance provides protection against short term financial hardship and set-backs that could have a serious long term effect on your future financial security. In this article, we explain the types of insurance you should think about when buying a home. If you’d like to know more, simply talk to your local mortgage broker about your requirements.
This type of insurance provides an income safety net should you become sick or injured and are unable to work and make your home loan repayments. You may also like to consider trauma/critical illness cover, total and permanent disability insurance and life insurance – that way if you are unable to go back to work, you won’t lose your home.
Mortgage Protection insurance covers the cost of your mortgage repayments if you die, or become seriously ill. It should be noted that it is only meant to cover your mortgage repayments and not any other expenses for you or your family. It may be a wise choice if you already have some other kind of life insurance – say with your super plan.
Building & Contents
Building or home insurance protects against the cost of rebuilding or repairing your home from things that are outside your control, like fire or natural disasters. You can opt for total replacement cover (to rebuild your home as it was prior to the event), or sum-insured cover (coverage up to a certain amount). When you buy a home, your mortgage broker will most likely recommend that you insure the property before settlement day.
When choosing your policy, make sure you have the right amount of coverage, as well as the right type of insurance for your actual needs. Your mortgage broker is an invaluable source of information in helping you to determine this.
Contents insurance protects your belongings, including carpets, rugs and curtains, in events such as fires, storms or theft. Often it will be bundled together with home insurance. Many people consider it a must-have to protect from those smaller disasters – even a contained kitchen fire could render your home unlivable until you can repair the damage!
How can your mortgage broker help?
Your local mortgage broker can access some of Australia’s most respected insurance providers, and offer you a competitive price on your insurance needs. What’s great is that a mortgage broker can do it all – from setting you up with a home loan that meets your financial circumstances, and also help you to arrange the right insurance to protect you and your family. You’ll find they offer a range of options, and make it easy. You may also be able to save by bundling insurances together, so please get in touch with your friendly mortgage broker today!
This article provides general information only 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 product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.
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, your mortgage broker is here to help!
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.
So, how do you find an investment property with solid capital growth potential? Look for locations and suburbs experiencing economic growth. Economic growth creates jobs, which brings more people to an area, which may flow through to the property market via increased demand for housing. Greater demand means more chance of capital growth.
Next, 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.
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.
Investors who are following a rental yield strategy will typically look for areas where rents are high compared to the property value. Talk to your mortgage broker, as they have access to exclusive property tools to help you locate a suitable area.
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.
Ways to add value
When choosing an investment property, ask yourself whether there is room for improvement, or ways to add value. You might not renovate it right away, but when you do, be sure to do plenty of research to find out what’s in high demand. Ask your local real estate agents what kinds of property features resonate well with tenants and future buyers in the area.
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. Your mortgage broker can take care of finding you a loan product that matches your financial circumstances, while working with your investment goals.
We recommend that you seek independent financial and taxation advice before acting on any information in this article. It contains general information only 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.