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InvestAus

InvestAus

Are you planning on investing in real estate in 2020? Or maybe you’re thinking of buying a new home? Coming from 2019, economists have already seen a significant change in the property market when compared to a few years ago. Today’s market and the new year prove that there are definite opportunities to be had if you know what you’re looking for. So, what’s ahead for our property market in 2020, and what should you look out for if you’re planning on investing? What’s ahead in the property market? House prices across all Australian cities are expected to grow over 2020–21. The combination of lower interest rates, easing lending serviceability buffers and increased economic growth is expected to make the 2020 property market popular among buyers and investors. While plenty of opportunities will arise for home buyers, it is still the hardest lending environment the market has seen in 20 years. It isn’t hard to invest in a property, but in today’s market doing so requires a different mindset. Thinking in terms of a growth mindset rather than a minimalist mindset and taking control of your finances will provide a more successful investment and financial life for you and your family. More insight:x Should you invest in real estate and property in 2... Are you planning on investing in real estate in 2020? Or maybe you’re thinking of buying a new home? Coming from 2019, economists have already seen a significant change in the property market when c... www.smartpropertyinvestment.com.au
0 Reply 21 Views 11D ago
InvestAus

InvestAus

Are you planning on investing in real estate in 2020? Or maybe you’re thinking of buying a new home? Coming from 2019, economists have already seen a significant change in the property market when compared to a few years ago. Today’s market and the new year prove that there are definite opportunities to be had if you know what you’re looking for. So, what’s ahead for our property market in 2020, and what should you look out for if you’re planning on investing? What’s ahead in the property market? House prices across all Australian cities are expected to grow over 2020–21. The combination of lower interest rates, easing lending serviceability buffers and increased economic growth is expected to make the 2020 property market popular among buyers and investors. While plenty of opportunities will arise for home buyers, it is still the hardest lending environment the market has seen in 20 years. It isn’t hard to invest in a property, but in today’s market doing so requires a different mindset. Thinking in terms of a growth mindset rather than a minimalist mindset and taking control of your finances will provide a more successful investment and financial life for you and your family. More insight:x Should you invest in real estate and property in 2... Are you planning on investing in real estate in 2020? Or maybe you’re thinking of buying a new home? Coming from 2019, economists have already seen a significant change in the property market when c... www.smartpropertyinvestment.com.au
0 Reply 20 Views 11D ago
Royal

Royal

It’s going to be the most significant spend of your life that will either have you sitting pretty on the property ladder, or send your finances down the drain. Here’s how you can avoid some of the property pitfalls. Buying your first home is a big deal, but chances are you have little to no experience in the world of real estate so the margin for error is great. To err is human, or so they say, but a misstep in the property game can cost you dearly. “If you are planning to buy your first home you should be aware of the mistakes easily made that could impact their ability to buy, apply for a loan or cost them more in the long run,” said Canstar group executive for financial services, Steve Mickenbecker. To better equip first-home buyers, Canstar and First Home Buyers Australia have highlighted some of the biggest rookie real estate mistakes. 1. Not being budget savvy To put it simply, don’t start looking online before you know how much you have to play with. “First-home buyers need to ensure they have a clear idea of their budget before they go house hunting. This will ensure buyers are aware of what they can afford before getting hung up on a dream home beyond their means,” Mr Mickenbecker said. How to avoid: Use an online home loan borrowing calculator, or speak with a lender or mortgage broker to understand what the banks will be willing to lend you. 2. Not having that 20 per cent deposit There are ways to get into your first home without the standard 20 per cent deposit, but anything less can cost buyers dearly as they will need to take out Lenders Mortgage Insurance (aka LMI). An insurance policy protecting the lender (not the buyer) from financial loss in the event you can’t make your home loan repayments, LMI can add up to thousands of dollars that don’t count towards the loan and you’ll never see that cash again. How to avoid: For buyers unable to save a 20 per cent deposit, who want to avoid paying for LMI, could tap into the First Home Loan Deposit Scheme if they make the cut. “Another option may be having a parent go guarantor for the loan to provide the additional security, however this needs to be carefully weighed up by both the buyer and their parents so all parties understand their responsibilities,” Mr Mickenbecker explained. 3. Not getting the reality of rates Understanding interest rates might not sound exciting, but knowledge is power in the mortgage world. Rates may be at historic lows, but what goes down must go up — eventually. A first-time buyer purchasing today will likely be in a home loan for up to 30 years so it’s worth pointing out that interest rates were more than double their current status just 10 years ago. How to avoid: “Prospective buyers should read up on what’s influencing interest rates, so they’re not blindsided when rates increase. Using a site like Canstar to compare home loans is a good way to remain up to speed with lenders interest rate movements and to determine if there are better offers available,” Mr Mickenbecker said. 4. Not having enough left over It’s not just about the purchase price. Beyond buying, Mr Mickenbecker said first-home buyers need to consider the hefty costs of stamp duty, building inspection or strata reports, transfer fees, solicitor fees, moving costs, new furniture or even renovations. How to avoid: Research additional costs before buying so you have money left over to cover any unexpected expenses or repairs. Set a buying budget so you can tally up all the possible associated costs. 5. Not getting reports Mr Singh said he has seen too many first-home buyers try to cut corners when it comes to building and pest inspections or strata reports. “We’ve seen people who decided not to do a building and pest inspection because to save a few hundred dollars, but that’s one of the biggest mistakes first-home buyers make. “They’re obviously getting in with a skinny deposit and want to save as much as possible, so don’t want to spend money where they think they don’t need to,” he said. “Building and pest inspections or looking into the strata report of an apartment building are vital steps. If you aren’t aware of a home’s problems you could be out of pocket by tens of thousands of dollars.” How to avoid: Get an independent building and pest inspection done on each house you are considering or order a strata report to get insight on the financials of an apartment block you’re looking at. 6. Missing out on grants Markets change and so does the assistance offered from Federal, State and Territory governments. The First Home Owners Grant differs in each corner of the country, but in most cases the grant is only for first-timers buying or building a new house or unit. In some places it can be used for established homes. Just how much you can get depends on a number of circumstances. How to avoid: To understand which grants they may be entitled, and how much, first-home buyers should visit First Home website. 7. Falling for the frills “Real estate agents are there to sell the dream but it’s not going to look like that once you move into it. First-home buyers just need to remember not to get too emotionally attached to a property because of the furniture or styling,” Mr Singh said. He added that the same idea goes for house and land packages or off-the-plan apartments. “People go to display homes and get wowed by the new designs and inclusions builders are showing. “But if you want to get the exact same home, it could cost $100,000 to $200,000 more than the basic advertised price. “That’s where people go wrong, they think they’re getting the display home but what they get is something pretty standard,” he explained. How to avoid: Read the fine print and ask lots of questions of the builder or developer. Get it down in black and white what you’re actually signing up to buy. And the last one is: 8. Not negotiating Not everyone is a born negotiator, but there’s no time like the present to learn some barter banter. After years of a hot property market with sellers in the driver’s seat across many cities and regions, buyers are now taking back control. That power of negotiation also works when haggling for a home loan. Mr Mickenbecker said first-time buyers shouldn’t take the first mortgage on offer. “You never know if you don’t ask, so always asking your chosen lender for their best deal may yield savings you thought weren’t possible, or open your eyes to a loan you hadn’t considered previously,” said Mickenbecker. How to avoid: “Too often people rely on the home loans presented to them by lenders, though first-time buyers should take a proactive approach and research what is available in the market and be prepared to negotiate on the interest rate to avoid paying too much,” he said. Read more @https://news.com.au/finance/real-estate/buying/8-mistakes-that-firsthome-buyers-make-and-how-to-avoid-them/news-story/b3cb88138446fc747c82e03d57309fff
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