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Q: I have a total of $50k saved up and I'm a first home buyer looking to get into the property market. Is now a good time to buy in Sydney? And if not, where can you recommend I consider looking instead? Or should I just wait?
A: Hi Victoria,
Firstly, Congratulations Victoria. Saving $50,000 is no easy feat.
You have not specified whether you want to move into the property or you would like to invest.
Clearly if you are going to live in the home, then it will have to be in the city you work in. If it is for investment purposes then you have the whole country to look at, although you need good advice as to where the capital cities are in terms of the property clock. See a summary of Herron Todd and White valuers report as of December 2016.
National Property Clock – December 2016
Some of the key locations on this clock are:
Sydney, Adelaide & Canberra (rising market),
Melbourne (approaching peak of market),
Newcastle and NSW Central Coast (peak of market),
Perth (bottom of market) and
Brisbane & Hobart (start of recovery).
More importantly is how much you can afford each month to repay the loan.
I can work out your Maximum Borrowing Capacity and what your repayments would be. Then you will have a better idea of what properties you can afford.
Regards,
Bulelwa Freer
0414 973 236
freerbg@optusnet.com.au
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Q: Hi there, I am wondering where I would go if I was in need of a $3,000 loan I am a single mother of my 3 year old daughter, I have a Job 3-4 days a week & i receive benefits as well. I have bad credit rating from when i was young & stupid. Anyone ?
A: Hi Claire,
As Sam has said, more information is needed, especially about the status of the bad credit. Secondly, the purpose of the loan will be important.
If you do not find help from the other credit advisors who have already responded, you are welcome to call me.
Regards,
Bulelwa Freer
0414 973 236
freerbg@optusnet.com.au
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Q: I'm thinking of using Purplebricks to sell my house when they start in Sydney next month. They appear to do everything a traditional agent does and I've estimated it would save us about $65,000 in fees. Are there any catches, seems too good to be true?
A: Hi Steve,
I am not clear as to how you arrive at a savings figure of $65,000
My suggestion is that you draw up a battle plan.
1. Start with a Realistic Price you want to achieve
2. Time frame by which you want to sell the house.
3. Expenses including agent's commission
4. Decide if you are going with an Open Agency agreement or Exclusive, there are Pros and cons.
When you have that you can then interview your local real estate agents and figure out who is most likely to help you achieve your goal. That's what I'd do.
Regards,
Bulelwa Freer
0414 973 236
freerbg@optusnet.com.au
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Q: If I am refinancing to another bank, will I need to pay stamp duty?
A: Hi Lewis,
Refinancing does not require Stamp Duty. However, refinancing is an extremely costly undertaking. Lenders skew costs and charges in such a way that they are paid up in the first 3-5 yrs. That is the reason the principal balance of your loan barely moves in the first 5 years of your loan. By moving your loan around frequently you are playing into the lenders' hands. Get the best advice you can the first time and stick around. Negotiate if you need to improve rates and conditions with your current lender. Brokers help you get the best deal because it is their job to be informed.
Cheers, Bulelwa - 0414973236
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Q: Will banks take my centrelinks payments into consideration as income ?
A: Sorry meant to say Adelaide Bank, Auswide and ME are among those that do. Bulelwa Freer
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Q: Will banks take my centrelinks payments into consideration as income ?
A: Hi Sharon, Is there other income? Only a few lenders accept Centrelink payments. Part A and Part B if they will be paid for at least 5 more years. Occasionally age pension but then lenders need a strong exit strategy for people older than 55 years. If the rest of the loan has no other issues, then you might be in with a chance. Bulelwa Freer 0414 973 236
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Q: Can someone please advise the advantages doctors get with homeloan mortgages, and/or point me in the direction or a broker/financial advisor in Perth that specialises in doctor loans?
A: Hi Rhys, In truth, there is no such thing as Dr's Loans. All lenders will welcome you with open arms. You are considered a Prime Low Risk Borrower so some lenders give you special perks like:
A. Special rate discount above what's on offer for ordinary clients
B. High LVR (Loan to Valuation Ratio)
C. LMI (lenders Mortgage Insurance) waiver up to 90%. Ordinary folks pay this as soon as their loan goes above 80% LVR but Drs with the appropriate Dr friendly lenders pay this insurance when they borrow above 90% of the value of the property.
If you value face to face contact, then you may need someone closer but I'd be happy to help. Drs more than other clients need a broader vision strategy because so much changes as your practice grows over the years.
Bulelwa Freer 0414973236
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Q: As a young investor, what bank is the most accessible for a home loan for an investment?
A: Hi Tom,
The Big Four, ANZ, CBA, NAB & Westpac are much of a muchness. The best way to answer your question is going directly to anyone of them is like buying a suit off the rack. Going to a broker is like finding a bespoke tailor and a good one will measure you, find out your likes and dislikes, understand the occasion for the suit etc. We do just that, find out about your financial circumstances, check what your long term goals are and set up a strategy for the long term. Unlike the tailor you don't even pay us. I'm in Bilgola if you wish to discuss further. Regards, Bulelwa
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Q: I'm looking at buying a franchise, is it best to pay cash or obtain a business loan?
A: Hi Jon,
Do you have an accountant or a tax agent? They are the best expert on the question you are asking. It is a Cost/Benefit analysis issue. The cost of the money borrowed has to be balanced by the tax offsets you can make. Find a good accountant especially one recommended by a franchisee in the same industry. Regards, Bulelwa Freer.
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Q: I got pre approved for a $420,000 home loan 6 months ago and now the bank say I can only borrow $390,000. If my situation is the same how can the bank change their mind like this?
A: So sorry to hear of your predicament. It's not uncommon unfortunately. They will want you to resubmit an application with a 6 month pre-approval anyway. If you need more than they are offering you are better off lodging a new application with a lender who will. We'll be happy to help. Regards, Bulelwa
