New Home Building and
Investment Property Tips and News
I had a quick chat to The New Daily last month about what trends are popular at the moment and how you can spruce up your home on a tight budget . With everyone spending alot of time at home these past couple of months, DIY is the special BUZZ word!!
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I have just realised it has been a while since I have posted a blog about our house. Our house is nearly completed....yay!! Our PCI date(Practical Completion Inspection) where we walk through the home with the supervisor and a building inspector is in a a couple of weeks. After this inspection the builder has 10 working days to fix any defects that are noted at the PCI. During this time the bank will send out a valuer to look at the home to make sure it is completed as per the building contract. So around 2-3 weeks from the PCI handover occurs...we get the keys!!very exciting!!![]() With interest rates on hold again this month, many people are wondering where to next? Will we see them go down further or start to rise? If you are a home owner wanting to do the best you can with your mortgage in the current economy, here are a few words from Mark Bouris of Yellow Brick Road. Are you planning on making a switch or adjusting your current payments? Let us know, we would love to hear. ![]() According to recent figures released by RPData, confidence in the housing market is improving and this is "showing up in improved development activity and demand for new homes." On a National level this is great news for the building industry and the economy. On a State level, "The New South Wales region is the driving force behind the surge in dwelling approvals with the latest August data showing a 48% lift in private sector approvals compared August 2012." View the full article by Tim Lawless here. ![]() Unfortunately many investors still overlook the benefits of claiming tax depreciation on their investment properties. Some key facts to keep in mind include:
![]() After building up equity in your home, you may be using this to start or continue your investment property portfolio. If you are starting to outgrow your home or on the opposite end of the scale, it is getting too big, are you considering making a move and turning your home into an investment property? Here are a few things to consider.
We offer the most friendly and accessible property management in Newcastle. Contact us and experience the difference today. Have you recently turned your home into an investment property? If so we would like to hear your helpful tips. ![]() Have you been asking yourself the question... "Where do I start in selecting the right location for my investment property?" You may already have a few suburbs in mind, so how do you pick the right one? Here are 5 tips that are sure to help. 1 - What are the current rents in the area? Check online through domain.com.au or realestate.com.au and see what a typical 3 or 4 bedroom home rents for. When you factor in the cost to buy or build will you receive a good rental return on your investment. Also keep an eye on the supply, if there are pages of rentals available in one particular area it may be a case that there is too much supply for the demand. 2 - Infrastructure. What is available in the area - schools, shopping centres, transport, entertainment - either established or soon to be developed. All of these features attract tenants. 3 - Link Roads, Expressways. Are the suburbs you are looking at close to major roads that potential tenants could use to drive to work. In the Hunter and Newcastle area, popular roads such as the Link Road and soon to be completed Hunter Expressway, are great roads to access for employment. 4 - Take a closer look at the suburb, what are the houses like? Are they well maintained? Do you see majority houses or units? If you can, take some time to walk through the local shops and see who is living in the area. Google street view could also assist in viewing the area. Residents who take pride in their homes and community create a positive environment which will attract quality tenants. 5 - Remember, you do not have to invest in your own suburb. Great investments are available state and countrywide. Do you have other selection criteria when you are deciding on an investment location? ![]() Guest post by our Finance Guru, Wade Hooper from Inspire Property and Finance Valuers are telling us that they have seen the bottom of the market which can only mean that prices will be on the way up. House prices will not increase until interest rates start to increase so why not get in now before we see a turn in the market. With the combination of low interest rates and the property market at its lowest, why wait? Taking advantage of the situation now will see an investor secure a great price and set themselves up for good capital growth. Don't forget the NSW state government incentives that are now in place. All non- first home buyers and investors purchasing homes off the plan or a new dwelling up to $650,000 or vacant land up to $450,000, are eligible for a $5,000 grant. Further details available here. For the first home owner the conditions are just as positive. The new state government incentives provide great cash advantages. These incentives are directing more people to buy land and build houses and in doing so we will see an increase in land and house prices. Getting in now and making that purchase will get you ahead of the market. Whether you are an investor or first home owner don't delay, speak with your mortgage broker or real estate agent today. The stamp duty exemption may have expired but the State Government has introduced a new incentive to assist home buyers.
All non- first home buyers and investors purchasing homes off the plan or a new dwelling up to $650,000 or vacant land up to $450,000, are eligible for a $5,000 grant. Under the NSW New Home Grant Scheme, this $5,000 grant is available as of the 1st July 2012 and was introduced to stimulate the construction of new homes in NSW. When considering the costs of purchasing a property stamp duty is a factor that needs to be taken into account. However in the Hunter Region this grant goes a long way to compensating the buyer for stamp duty and other related costs. Another great point to remember is that there are no restrictions on the number of times a purchaser can apply for the grant. Further details about the NSW New Home Grant Scheme can be found here. Okay, so you have written down your budget. Your savings plan is underway and you can see those dollars increasing every week in your account. Fantastic, you are on your way to achieving your goal.
In preparation for your first property purchase there are a few more things to prepare and keep in mind other than your deposit. Remember to keep your savings in a separate account, not just the account your pay goes into. This gives the proposed lender a clear view of your savings patterns. It is always good to save more than your targeted amount as when you do move into your house there are always additional costs and expenses. Stamp Duty on the purchase of a house can be quite substantial as well as Conveyancing and Borrowing costs. You may also want to do additional landscaping or buy additional furniture. Your Broker can give you a full run-down of all costs involved in the purchase process. If you do want that new lounge, TV or Fridge, it is always recommended you steer away from interest free deals or credit cards at this early stage. Take extra care with your current Telephone and mobile accounts, and, if you are living with mates, electricity accounts. If you have a bad history in either one of these, it can stop you from getting a loan. Be responsible for your spending and bills especially mobile phone accounts as mismanagement of this could result in a default on your credit rating which makes it very tough to get finance. You might have a good savings history however if you are overdrawn on another account this could also jeopardise your borrowing ability. It is important to keep your everyday transaction account as well as your savings account looking good. Car loans. If your are thinking of buying a house don’t go out and spend a lot of money on a car. Lets say a car repayment is $500 per month, your car loan decreases your borrowing capacity. If you are thinking of buying a house and car, do the house first. A few simple things to keep in mind when preparing to purchase your first property. All of these points can be clarified and explained further by your broker. |
Opinions expressed in this blog are personal opinions and are not to be taken as financial or investment advice. If you have an enquiry or wish to receive further information from Carnelian Projects click here to Contact Us
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