Please see our articles of interest, below:

Don't wait too long and miss your entitlements! A call to our office today could save you thousands.

This weeks RBA meeting has seen the first change in the cash rate since November 2010 with the cash rate now reduced to 4.50%. Subdued demand conditions and the high exchange rate have contained inflation allowing the Board to review monetary policy to provide support for demand. The change will come as an early Christmas present for all property owners, provided lenders follow suit.

Our services are a great source of help if you are thinking of, or know someone thinking of, taking that first step onto the property ladder and don't know how or where to start.

First home buyers - NOW is the time to explore the window of opportunity open to you. With our support and guidance you may find this is the right time to stop being cautious and jump into the property market.

So why come to us before you are ready to buy?

Obviously we can organise a mortgage, but this is generally not the starting point. We can also help with preparing your application in an acceptable and favourable format for the lending institution.

This may include:

  • ensuring your savings pattern looks strong (rental payments are now considered as savings history for some lending institutions and banks)

  • reviewing your rental and employment history to present your application in the best way for the lending institution, and

  • explaining and ensuring you claim your first home owner entitlements*.

* There are some HUGE changes happening in regards to government incentives for first home buyers in each state so it is essential to call us now if you are considering buying - more importantly if you were considering waiting until next year. Some incentives cease after 31 December 2011. A call today may save you thousands of dollars.

We will:

  • present your application on your behalf
  • calculate how much you can realistically borrow
  • determine how much you can realistically afford (this is sometimes a different figure)
  • advise on the best loan structure and features to meet your needs, and
  • help you set up a budget for meeting regular monthly or fortnightly repayments.

It is a good idea to start putting aside the expected loan repayment into a savings account before you buy so you know you can comfortably afford your new loan.

We will also assist you to determine how much you need for expenses such as stamp duty, legal costs and bank fees.

If you have been waiting for the right time to purchase your first home, please read the article below. Call the office for a consultation to ensure you are ‘mortgage ready' and to ascertain your entitlements.

If you need advice on the documentation required to apply for a loan, please call us for our information sheet on "what you need to know before applying for a loan”.

PS: Please pass this email on to any friends or family members who are thinking of buying property.
From all accounts it is currently a buyers' market, but first home buyers have been noticeably quiet in the property market of late.

So why haven't they been buying?

Several reasons have been suggested but it is likely the phasing out of government incentives for this segment is a contributing factor. The various first home owner grants initially worked to increase first home buyer demand in previous years resulting in a "pull forward" effect, thereby bringing forward many purchases during 2009 and following more slowly into 2010. As a result, a quieter period has naturally followed into 2011.

  • the softer economic climate
  • concerns about global markets, and
  • a question mark over future interest rate rises at the beginning of 2011 have also had an impact.

Many first home buyers were also priced out of the property market during the boom and were disappointed the grants artificially inflated housing prices putting houses that would normally be affordable out of their reach.

At the time it was believed the grants significantly contributed to higher house prices at the lower end of the property market.

Some potential buyers this year have been sitting on the sidelines wary of making a mistake by paying too much or over committing and nervous about the possibility of higher interest rates in the future.

Should new home buyers still wait for prices to drop further?...

Experts are forecasting an increase in first home buyer activity.

According to CANNEX "With a flat housing market and a number of lenders easing deposit requirements, first home buyers are likely to benefit.

Affordability always has been, and probably always will be, the biggest hurdle first home buyers have to clear.
The fact that property is not selling as frantically as it was a couple of years ago should give prospective buyers more breathing space."

Potential first home buyers will not stay out of the market forever

BIS Shrapnelii expects "…a correction in first home buyer demand, which should begin to revert back to long term averages as the 'pull forward' effect is worked through."

Potential first home buyers will not stay out of the market forever.

At some point many will reach a life stage where they will want their own dwelling and if they can't afford their first choice of dwelling initially, then they will purchase a more affordable type of dwelling and/or in a more affordable neighbourhood.

In any event, this period will allow future first home buyers to build up their deposit and take advantage of softer house prices.

Housing affordability is very important for this segment. Property prices have certainly been soft, making it an opportune time for first home buyers to take their first step on the property ladder, particularly with the suggestion of interest rates potentially decreasing as well.

First home owner grants and stamp duty incentives are still in place but vary from state to state.

There are some BIG changes happening from 31 December 2011 in some states, so if you are a potential first home owner you should call the office now to find out what is still available to you in your state.

The lending institutions are also working hard to attract first home buyers and are motivated to lend.

Over the past year, 25 lenders have eased their deposit requirements and increased loan to value ratios – therefore helping more first home buyers by allowing them to borrow a higher percentage of the property valuei.