Is now a good time to buy property? Two-thirds of investors say ‘yes’

18 Sep 2020 | Interest Rates, Investor Loans

The majority of property investors are remaining upbeat despite COVID-19, with 67% believing now is a good time to invest in residential property, according to a new survey.

The 2020 PIPA Property Investor Sentiment Survey gathered insights from nearly 1,100 property investors in August, with the key finding that the majority of property investors remain optimistic about the months ahead.

Indeed, two-thirds of investors who participated in the survey said they believe now is a good time to invest in residential property.

Additionally, 77% of investors said any concerns about potential falling house prices won’t cause them to put their investment plans on hold.

Tim Lawless, head of research at CoreLogic, the nation’s largest provider of property information and analytics, echoed the investors’ positive sentiments earlier this month.

“Through the pandemic to date, housing values nationally have slumped by only 2% and housing activity has trended only about 5% lower than a year ago over the past three months,” Mr Lawless said.

“For people with confidence in their own financial circumstances and household balance sheets, arguably this is a good time to be considering a home purchase thanks to the low cost of debt and certainty that rates will remain low for at least the next few years.”

What are investors likely to do next?

Well, almost half of the investors surveyed by PIPA (44%) said they are looking to purchase a property in the next six to 12 months.

“Plus, about 71% of investors have indicated that the pandemic has made it less likely they will sell a property over the next year, which is another factor that will help to underpin property prices,” added PIPA Chairman Peter Koulizos.

Where are investors looking?

It seems many property investors are beginning to look further afield.

More than 40% of those surveyed intend to buy an investment property in a different state or territory to the one that they currently live in.

Queensland is definitely in the sights of investors, with 36% saying it offers the best investment prospects over the next year, followed by Victoria (27%) and New South Wales (21%).

But it’s not just investment properties that respondents were keen on interstate.

One in six investors (17%) said the pandemic has made them consider moving to another location altogether, with regional areas set to benefit the most due to the improved lifestyle factors they offer and an increasing ability to work from home.

Investors indicated their top locations to migrate were regional NSW (21%), regional Queensland (18%), Brisbane (16%) and regional Victoria (14%).

Coastal locations in particular are on the rise – up to 12% from 8% last year.

Keen to buy?

As mentioned above, for those who are confident in their own financial circumstances, now can certainly prove a tempting time to buy.

So if you’re looking to add to your property portfolio, looking for a change of scene, or keen to buy your first home and break into the market, get in touch today.

We’re here to help you find a loan that’s just right for you.

R U OK?

14 Sep 2020 | Family & Friends, News

We’re here for you, and here’s how you can support others

2020 hasn’t been an easy year for many Aussie households and businesses, which makes today an important one to check in on one another.

COVID-19 and associated lockdowns have placed all sorts of new pressures on families and businesses across the country this year.

In fact, more than 1.5 million Australians are currently suffering from mortgage stress – the equivalent of 40% of households.

With today (September 10) marking R U OK? Day 2020, first and foremost we wanted to touch base, check-in, and see whether you’re doing ok.

If not, please know that we’re genuinely here to help any way we can, including if you simply need someone to listen to you right now.

And if everything is fine and you’re doing a-ok, well, perhaps you know someone in need of a shoulder to lean on and an ear to hear them out.

“There’s more to say after R U OK?”

This year the key R U OK? message is “there’s more to say after R U OK?”

Which is great, because simply asking someone R U OK? without genuine thought, care and time can sometimes risk coming across as a platitude.

Fortunately, the team at R U OK? has compiled a handy list of tipsand more subtle questions you can ask instead, as well as a series of follow-up questions.

The tips include making sure you’re in a good headspace yourself – relaxed, ready to listen, and with ample time to give – while also being in a comfy and private place.

Suggested questions include simply asking “How are you going?”, “What’s been happening?”, or “You seem less chatty than usual. How are you going?”.

R U OK? encourages you not to rush the person, and show that you’ve listened by repeating back what you’ve heard (in your own words), and asking if you’ve understood them properly.

You can then follow-up with questions such as “How would you like me to support you?”, or “What’s something you can do for yourself right now? Something that’s enjoyable or relaxing?”.

And importantly, don’t just ask them on R U OK? DAY.

Set a reminder in your phone or on your calendar to check in again with them in a couple of weeks or, if they’re really struggling, sooner.

Lenders begin contacting borrowers who have deferred loans

11 Sep 2020 | Home Loans

If you’ve deferred your home or business loan then it’s likely your bank will reach out to you in the coming weeks. Here’s what to expect and what options are available to you.

As the initial wave of six-month loan payment deferrals comes to an end, banks have started contacting customers to discuss the next step, which could include further support, assistance or deferral.

Of the more than 900,000 loans which have been deferred during the pandemic, at least 450,000 borrowers will be contacted as they approach the end of their loan deferral in September and October.

That includes 260,000 mortgages and more than 105,000 business loan deferrals to small and medium businesses that will be assessed.

The important thing to know is this: you have options

No one likes to be caught flat-footed. And if you’ve deferred your loan, the last six months have understandably been quite a stressful period.

Rest assured, however, that there are a range of options we can help you consider before the bank phones to see if you can resume your pre-covid loan repayments.

Those options include:

– switching to interest-only repayments for a period of time
– renegotiating your rate with your current lender
– refinancing to another lender
– debt consolidation, or
– a combination of these and other measures.

And if none of the above options are feasible right now you can seek a further four-month deferral with your lender – but at least you’ll know that you’ve fully explored the other potential avenues first.

We’re here for you

If you’d like to explore some of the above options before your lender contacts you then please feel free to get in touch today.

We’re here to help you with your loan any way we can – whether that be deferring, refinancing, or renegotiating.

How to enter the property market with a $15,000 to $30,000 deposit

4 Sep 2020 | First Home Buyers

First home buyers are now breaking into the property market more than four years faster than they typically would thanks to a little-known government scheme. Today we’ll discuss how.

Ever heard of the First Home Loan Deposit Scheme? If not, don’t stress, it only launched this year and the first six months of data has only just been published.

Basically, it’s a government scheme that allows eligible first home buyers with only a 5% deposit to purchase a property without paying for Lenders Mortgage Insurance (LMI) – which can save you up to $10,000. ⁣⁣

Better yet, it’s giving first home buyers the confidence and ability to enter the property market much, much sooner.

How so?

Well, to save the 20% deposit that’s usually required to avoid paying LMI, first home buyers would typically need to save an additional $54,700 (national average) on top of their 5% deposit, according to the government report.

So by only needing to save a 5% deposit, first home buyers can enter the property market 52 months (4.3 years) faster on average.

“Buying a home has become more challenging,” says the report, “in the early 1990s, it took an average household around six years to save a 20% deposit to buy a typical dwelling. More recently, it takes around nine to 10 years.”

“Many people can afford to service a mortgage once they have passed the initial hurdle of saving a deposit.”

Another big benefit of the scheme is that it can be used in conjunction with other government initiatives, such as first home buyer grants and stamp duty concessions – so be sure to ask us about those too.

So what’s the scheme’s average first home buyer look like?

Well, they’re normally aged between 25 and 34-years-old and have usually saved a deposit of $15,000 to $30,000.

They typically earn $60,000 to $80,000 as a single, or $90,000 to $125,000 as a couple, and are often teachers (37%), nurses (25%), defence force personnel and first responders (17%), and child care workers (10%).

As to be expected, the value of the property they purchase often depends on where they live.

But here are the scheme’s median property purchase prices in each state: NSW ($450,000), Victoria ($495,000), Queensland ($350,000), WA ($335,000), SA ($306,000), Tasmania ($285,000), ACT ($442,000), and NT ($340,000).

Other interesting titbits from the scheme’s report

– Almost two-thirds of first home buyers borrowed between 94% and 95% of the property price.

– Three-quarters of guaranteed loans were taken up by Australians aged between 18 and 34.

– The average monthly mortgage repayment for borrowers using the scheme was $1,729 at the point of funding, which was equivalent to 30% of household disposable income.

– Most guarantees in the scheme were issued through mortgage brokers.

Get in touch soon

So… here’s the big catch.

The scheme is limited to 10,000 guarantees per financial year, and places are filling up by the day.

So if you’re interested in applying for and reserving a spot in the scheme, get in touch today. We can help you apply through one of the scheme’s eligible lenders.

More than a quarter of SME businesses knocked back for finance

28 Aug 2020 | Business Finance

As if small and medium-sized businesses weren’t already facing an uphill battle this year; now it turns out that more than a quarter were knocked back when they applied for finance in recent months. Here’s how we can help.

The latest Sensis Business Index – which surveyed 1,015 businesses in the first week of August – shows 26% of businesses that applied for finance over the past three months were knocked back.

The figure was worse in the bush with 37% of those applying in regional areas declined, compared to 25% in cities.

Additionally, fewer and fewer businesses are applying for finance.

The percentage of businesses that applied for finance dropped to 13%, down from 16% in March and 17% in December 2019.

How we can help

All of the above figures highlight the importance of having a broker like us guiding you through the process.

Here’s what small business lender OnDeck has to say in regards to its recent research on the importance of having a trusted professional to speak to while applying for finance.

“Our survey clearly highlights that SMEs place significant value on the input of a broker in the commercial finance process,” says Robbie Fidler, OnDeck Australia national broker channel manager.

“Brokers can act as a conduit between lenders and SME owners, providing the person-to-person link that is so valued across the SME community.”

Additionally, SME lender Scottish Pacific recently highlighted the important role brokers can play in helping businesses prepare for that September “cliff” you’ve probably heard about.

“When COVID-19 hit and JobKeeper and other initiatives were put in place, September seemed a long way away – it’s only a week away now, and small businesses need to act,” says Scottish Pacific’s General Manager for Victoria, Jane Starkins.

“We are having regular conversations with accountants and brokers who realise their clients need funding in place to pay expenses they have been deferring, including rent, asset finance, PAYG, superannuation and payroll tax.”

Ms Starkins adds that now is an ideal time for business owners to find new funding paths that harness the value of assets already in their business, such as their sales invoices or plant and equipment.

“Business owners are reluctant to extend their borrowings. They are busier than ever trying to navigate the COVID-19 environment, which means accountants and brokers have a crucial role to play in making them aware of other funding solutions,” she says.

Get in touch

If you’re an SME owner in need of finance solutions to get through the months to come, get in touch.

The sooner we can discuss your options with you, the better placed your business can be to avoid the September cliff and thrive beyond.

« Older Entries

Next Entries »