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Hello, Welcome to our latest 'new look' newsletter. For our regular=20 subscribers you'll notice the new look and feel with added = features like=20 forward to a friend and print friendly buttons for your benefit. = A quick update on property markets around the country point to = a steady=20 increase in median values across the eastern states, with a = moderate=20 cooling of the spectacular rises in values in WA & NT over the = last 3=20 years. Despite recent media attention given to the exodus of baby = boomers=20 selling investment properties to take advantage of the current=20 superannuation benefits before June 30th. New data released shows = rental=20 vacancy rates across the country are now at 40 year lows! A new = wave of=20 investors are now looking to come back into the market, with one = real=20 problem - a severe shortage of =E2=80=98in demand' real estate. = This is only=20 doing one thing to market values. Melbourne in particular has had regular auction clearance rates = above=20 80% since the beginning of the year. This indicates a buoyant = market with=20 strong buyer demand but with a real lack of quality real estate = available.=20 Recent media articles suggest the Reserve Bank is now likely to = leave=20 interest rates on hold for the rest of the year, much to do with = the=20 relatively low current inflation rate. This will more than likely = lead to=20 an increase in demand for property and mortgage finance around the = country, as debt is still relatively cheap and mortgage products = are now=20 more flexible and accessible than ever before. On the finance front we are busier than ever, with strong = demand for=20 investment finance in all states with a surge in demand for = development=20 and construction finance. At Red Rock we specialise in providing = fast=20 flexible and highly leveraged development finance facilities. For = more=20 information our development finance mortgages please visit the = loans and=20 products section of our website or contact us today for a = confidential=20 discussion. We hope you find the newsletter of interest. Please pass your = copy on=20 to family or friends. We look forward to helping you, and those = you=20 recommend our services to. Please call with any = questions. We're = here for=20 you!
This is a very exciting time as the level of competition = between banks,=20 credit unions and other lenders means there are attractive loan = packages.=20 These lenders are looking for business and as your mortgage broker = we=92re=20 in the best position to arrange a deal that suits your particular=20 needs. The market place has never been more complex with all that is = on offer=20 from the more basic, right up to more complicated products that = need=20 considerable thought and management. So, as well as our ability to help you choose the best = available=20 product, you have the added benefit of our ongoing assistance and = support.=20 It=92s often nice to be able to pick up the phone and talk to a = real=20 person and know they understand your circumstances and genuinely = want to=20 help. As everyone=92s circumstances change from time to time; be it = redundancy,=20 promotion, an addition to the family, or potential retirement, all = can=20 mean it=92s time to review your loan arrangements and make sure = your=20 finances continue to work for you. Remember, we=92re here to help and we=92re only a phone call=20 away. Home = Ownership: Getting=20 started
The question is, how can first home buyers get a start with = home loan=20 interest rates rising and real estate in our major cities being so = expensive. A tried and tested way to start is to save, save, save and = build up as=20 big a deposit as possible. This money will also need to cover all = of the=20 additional things like legal fees, pest inspections, building = inspections,=20 removalist fees and the like. These additional costs can be many = thousands=20 of dollars just on their own. While you=92re building that savings record, you=92re also = importantly=20 showing a potential credit provider that you could make repayments = based=20 partly on your savings pattern. In lodging a loan application that = savings=20 history may make all of the difference in getting that loan = approval=20 through. Then of course, there=92s the first home owner=92s grant of = $7,000 tax=20 free. While not enough on its own, the grant through an approved = lender=20 can assist as part of the deposit. There are a number of = eligibility=20 requirements but they do not relate to the applicant=92s income or = value of=20 the real estate being purchased. The grant however does not extend = to a=20 purchase solely of vacant land. Other things to note are that each applicant needs to be over = 18 and at=20 least one applicant has to live in the home as their principal = place of=20 residence for a continuous period of six months, commencing within = 12=20 months of settlement or construction of the home. There are also schemes in various places where stamp duty is = waived or=20 reduced for first home buyers, where eligible first home buyers = receive an=20 exemption on or reduction in transfer duty and mortgage duty on = homes=20 within certain valuation limits. There are other criteria in = addition to=20 the valuation of the home which need to be met to receive the = exemption or=20 reduction. For an eligible home purchase that can be a saving of = many=20 thousands of dollars. As your mortgage broker we are happy to research your options = and=20 provide you with the details necessary for you to make an informed = decision. While the first home you buy may not be in exactly the area = you=92re=20 after, or might be a unit or smaller home, in the long run it gets = that=20 foot on the first rung of the property ladder. Might a = Mortgage Offset=20 Account work for you?
It=92s called a mortgage offset account and it may be something = that can=20 work for you. These kinds of accounts are available with most = lenders,=20 though not all have this kind of product. Some lenders will allow 100% offsets, while others are not so = generous.=20 Typically you can withdraw from and deposit to this savings = account just=20 like any other and usually the monthly loan repayment comes from = the=20 offset account by direct debit. Basically a 100% mortgage offset account works like this, = it=92s a=20 savings account opened in combination with a mortgage but as two = separate=20 accounts. Broadly speaking, when its time to calculate the = interest due on=20 your mortgage for the month, the amount in the savings account is = deducted=20 from the balance of the loan. So if your mortgage balance is = $300,000 and=20 there is $100,000 in the offset savings account, you=92ll pay = mortgage=20 interest on $200,000, not the mortgage balance of $300,000. This = then=20 reduces the interest you have to pay on the loan for that month = and for=20 the time the funds are in the offset savings account. If you then make your normal loan repayment you=92re paying off = more of=20 the principal sum than you would otherwise with the result that = next month=20 the total interest charge is less. In the long run, that should = mean=20 paying off the loan faster and possibly saving you thousands. There=92s an added advantage. If you were to put that same = $100,000 in a=20 term deposit instead, you may have to declare the interest earned = in your=20 tax return and pay tax on it. Using a mortgage offset account = means=20 effectively you don=92t earn any interest on the deposit account, = so there=92s=20 no interest to declare with respect to the offset account. Now this product probably won=92t suit everyone, and you=92ll = need to have=20 a careful look at the lender=92s terms and paperwork to ensure = this product=20 is suitable to you. It=92s certainly also worth chatting to your = tax=20 accountant or qualified adviser about it to make sure a mortgage = offset=20 account will fit into your overall financial plan and to suit your = individual circumstances and needs. What=92s = this joint=20 tenancy stuff all about?
It is important to know the two types of ownership. Joint Tenancy is based on the principles of survivorship or how = one=92s=20 property is to be dealt with if one of the owners dies. This means = that on=20 the death of one of the owners the surviving owner(s) = automatically=20 receive the deceased person=92s share of the property. Usually a death certificate is required to be lodged, with a = Notice of=20 Death to bring this about. However, it is automatic and occurs = regardless=20 of what their individual last will and testament may say. Tenants in Common on the other hand, is where the owners may = possibly=20 want an individual share in the property with that share being = disposed of=20 by their will rather than that share automatically going to the=20 survivors. Under a joint tenancy, each owner has the same rights with the = others=20 regarding legal ownership, enjoyment, possession and sale of the = property;=20 in other words they all share together in the whole of the = property=20 equally, not in separate shares. Under a tenancy in common on the = other=20 hand, each owner has a separate and distinct share, and these = shares may=20 be different in size or percentage. So, this is obviously an important decision to make. When the = time=20 comes for you to decide what=92s best for you, make sure you talk = to your=20 solicitor or conveyancer and accountant to get further advice = based on=20 your individual needs and circumstances. |
This issue
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St Kilda Rd Towers Forward This Newsletter Could one of these articles help a friend? Or do you know = someone=20 needing a loan in the next three to six months? Please give me a = call or=20 forward this newsletter to them. Many thanks. Click to forward to a friend Profile Red Rock Mortgages specialise in mortgage finance for property=20 Investors & Developers. Whether you're a novice or an = experienced=20 investor looking for a flexible finance solution to create wealth. = Red=20 Rock offers a mortgage to suit your needs. Our aim is to assist investors in creating wealth through = property by=20 utilising innovative and flexible mortgage finance solutions. Our boutique approach, experience and expertise means you=92ll = be able to=20 source the right finance facility to build a diverse property = portfolio.=20 We not only look at investment finance strategically, but also = understand=20 the needs and requirements for a successful property investor. Red Rock Mortgages provides you with choice & flexibility = from a=20 diverse lender panel including the major banks and other lenders. = In=20 addition our own unique range of lending products can provide you = with=20 cutting edge innovation and additional leverage where others = cannot. As investors and self employed business people we understand = the needs=20 of self employed borrowers and property investors. You can be = assured of=20 receiving expert advice and prompt assistance, with the added = comfort of=20 knowing we are both speaking the 'same language'. For professional intelligent finance advice, contact us=20 today. Did you know? Population Growth According to the latest Australian Bureau of Statistics = records, we=20 have one birth in this country every 1 minute and 59 seconds, one = death=20 every 3 minutes and 54 seconds, a net gain of one international = migrant=20 every 4 minutes and 47 seconds leading to an overall total = population=20 increase of one person every 2 minutes and 11 seconds. So, if you thought the supermarket queue was getting longer or = your=20 neighbourhood growing a little faster than you had imagined, = you=92re=20 probably right. This also leads to the fact that at the time of writing this = there were=20 now 20,800,000 of us. * Sources: www.smh.com.au www.ninemsn.com.au=20 www.bom.gov.au Book Review Golden Rules of Wealth Technology is taking over. Now you are free to invest both = locally and=20 off-shore; cards have replaced cash, and you are continually = bombarded by=20 new investment products and changing laws. Yet, knowing how to = invest=20 successfully is more important than ever, because welfare is being = strained as people retire earlier and live longer. Once you = understand the=20 basic investment principles you=92ll be able to work out a = strategy that=92s=20 right for you, and change it when necessary. With over forty years of banking and finance experience,=20 internationally renowned author Noel Whittaker has produced a book = that=20 will be as relevant in the future as it is today on how to make = money, how=20 to invest it wisely and how to avoid the traps. Available at all Dymocks for $20.99. Simon & Schuster=20 Australia Red Rock Mortgage Group is a Full Corporate Member of the = Finance=20 Brokers Association of Australia. All members are bound by a strict code of ethics to ensure the = highest=20 levels of service, integrity and=20 professionalism. |