Are the GOOD times retuning to the Gold Coast Property Market.
Well at least Gold Coast Mortgage Brokers are hopeful anyhow!!
So its been 8 long years since the GFC had a massive impact on world financial markets that ultimate led to the cooling off of property in major cities all across the globe.
And for property investors on the Gold Coast, the effects were felt hard.
…So much so property prices almost dropped to levels not seen for over 15 years.
Unprecedented price hikes in land values have been seen at over 25%
So is it time to make the leap of faith back into the Gold Coast property market?
We talked to Ben Fragar, Mortgage Broker Gold Coast region and he is optimistic the surge in property prices will continue on for a few more years yet.
…He expects to see them gradually increase well into 2018 as the city hosts the Commonwealth Games.
And we think Ben is quite within his rights to show his optimism
As Real Estate experts are cautious about providing commentary around property booms, those sitting on the data say Gold Coast property began to move in a positive direction late last year, with some of the best price movements across waterfront suburbs.
So what’s driving this unprecedented property value growth?
Several factors are always the ingredient to price surges, however key factors such as the desire for waterfront views and a lack of property stock helps to boost these areas, whilst also the growth in construction projects has lead to trades and businesses looking for short to medium term accommodation, which puts a premium on rental.
An article written by the Gold Coast Bulletin back in March reported a $3 billion construction boom.
…And this is great news for property investors as more construction means for labor looking for somewhere to live.
We asked Ben to help us out with his best tips for first time property investors seeking an investment loan.
Let go of the emotion – One of the worst things property investors can do is make a buying decision based on what they like or how they expect a property to look.
Leave the emotional buying to when it comes to purchasing your primary residence.
Focus on the needs of your tenants. Research what tenant want in the Gold Coast area, and perhaps even in specific suburbs, so you can be sure your providing a place that will attract tenants.
Things like public transport, low maintenance yards and easy access to shopping centre’s & schools make perfect investment properties.
Start small and work up – Your going to need a deposit for your investment loan, and the lower your Loan – Value – Ratio (LVR) is the closer you will be to having money in your pocket from the rental payments less expenses. Over extending yourself on the first purchase will lead to financial stress.
Look at the potential capital growth in the area – Obviously as reported in many articles recently, the Gold Cost property market has seen unprecedented growth over the past 12 months, and you should take the time to research thoroughly whether or not the growth will be sustainable long term.
Analysts believe the Gold Coast property market is currently in a growth phase, and it’s not about to slow down any time soon!
The content in this article is for informational purposes only, and should not be used for any property or finance related decisions. Please seek the assistance of a professional and perform your own due-diligence.
Well I have a lot of information to pass on since it’s been a while. My best friend Bec, a Penrith Mortgage Broker joined me recently to look at the top points of concern with the Penrith property market, and what it means for home owners and investors looking to refinance their home loans or investment loans.
As we all know the Sydney property market is booming, but when is it going to end.
First point to make is that I can see vacancy rates in Sydney is going to reach the 2.5 percent mark. Truthfully we believe that we’re going to get closer if not reach the three percent mark.
Western Australia has is already experiencing a huge increase and we see them right up to 5.6 to 6 percent which is quite a significant jump.
The next is that brand-new home developments are going to drop in value by ten to twenty percent. I have a running bet with some of my close colleagues that believe otherwise, but I’m extremely positive that we’re visiting this drop as early as March in 2016.
So keep your eyes on this one area as this is going to be an intriguing one because many retirees have settled into self manage super funds and in addition to investors that have followed the Chinese or other cities in the United States is that at all have bought into property that is well over- priced specifically in the Penrith area.
My third prediction is that there are going to be more would be developers that are going to default on their development loans and there’s going to be substantial carnage through this small group of property investors unlike what we’ve seen in previous market slumps.
These problems will rise because a lot more developers have actually handled larger sums of capital to carry out these developments and then carry them onto the marketplace they think is going to remain hot until 2017.
I believe my top prediction is around the real estate agreements, more specifically the type in which these brand-new developments have been marketed and sold.
I think that financial institutions and governing bodies need to examine the contracts that had been written for the sale and on the rental guarantees that have actually been provided to potential purchasers. It will remain to be seen if financial investment markets start to rely on these rental assurances.
I bring a rather interesting point to hand regarding the drop in yield rates investors will obtain. My initial figures are decreases of around 25% with rental yields in Penrith, Sydney. I strongly believe that I within 6 to 8 months we will start to see properties in these areas be leased for anywhere in between 420 to 450 per week. Mortgage Brokers in Penrith will start to see a drop in investor loans for that reason.
So these are my top predictions for how the Penrith housing market, will stand up over the course of 2016.
Penrith Mortgage brokers will need to get creative when dealing with a fierce market, as I predict there will be less people looking for home loans in Penrith.
Increasing the resale value of any property is among the top priorities of homeowners whether it is their home of residence or investment.
In some cases there is absolutely nothing you can do about declining values, due to the fact that value can frequently change through external sources, such as the overall decrease of the community, the property maintenance of surrounding buildings, or the rezoning of specific areas by local government agencies.
Nevertheless, despite possible outside influences placing downward pressure on property prices, there are many elements & practices a property owner can implement to increase value, in spite of any changes out of your control.
Improving Value Through Effective Property Maintenance
Ben Fragar, Managing Director of Gold Coast property maintenance company Plan B Maintenance says “There are many outside factors that can help to improve resale value of your property, and there are a couple that should be considered before taking out any mortgage refinance options for renovating purposes”. Some of these factors consist of:
We have al heard the common phrase in property location, location, location. The location of your property will have a huge bearing on how its value performs in the long term. Elements such as median house prices for recent transactions, the quality of regional schools and whether the area has a strong sense of a safe neighborhood.
With the advancement of technology buyers in todays property market wish to see eco-friendly options when settling on a brand-new property. Structures that aim to keep an environment-friendly stance are more likely to hold their value or increase their value to buyers in the future. A few of these choices are more inexpensive than others, but a potential new homeowner needs to have the ability to execute at least one or two of these sustainable options on the home.
Perhaps the greatest & well-known strategy for improving a properties house value is routine maintenance & renovations. Performing well thought out renovations can add huge amounts of value, sometimes yielding a 3:1 investment return. Making sure not to over capitalize, non-structural renovations can be achieved over a period of time.
Ben Fragar comments “Take a list and categorize by just how much it may cost, including your money and time, and by how much the expected return in value. Be sensible. Make in formed decisions. It’s totally fine to go with a full kitted out gourmet style kitchen, however keep your budget & capital return in mind”.
When you have a list, focus on what will give you the biggest return for little investment and take the emotions out of it. See if you can come away with a sensible balance between the have to haves and the dream to have.
Easy to manage house improvements to help it increase in value.
They say a picture paints a thousand words, and first impressions mean everything. Well there’s no question that small easy to maintain shrubs and colorful plants will improve the curb appeal of any house and give that great first impression. Its highly recommend though to consider your community and purchase plants that are belonging to your area, will fit in with your neighbors or plants that are drought-tolerant; these require less water and maintenance, meanings you can save on water costs whilst doing your part for the environment.
Among the most simplest, cost-efficient enhancements of all is paint! Newly painted spaces look clean and upgraded. If your upgrades and maintenance activates are for resale, remember that neutrals attract the best variety of people, for that reason making your home a preferred purchase. Usually, a litre of paint costs around $15 – $25. So buying a few litres of paint & giving your rooms a real freshen up can yield big returns!
Upgrading bathrooms to the latest styles and options can provide that real wow factor for potential buyers. And more importantly a clean, fresh bathroom feels more confortable to visit. There’s absolutely no need to remodel a bathroom to realize an improvement in value, however if your up to it, a redesign of the layout to allow for a more user friendly space can reap huge returns.
Absolutely nothing turns buyers off more than the idea that they will right away have to change all the flooring in a house. Ideally, you would want to replace them all, and keep a uniformed covering, but if on a restricted budget plan start by changing the carpeting in the space that shows the most wear and/or stains.
Remember, consistent property maintenance & renovations can yield great results with increased value, and the ability to refinance for further investments. Start gradually. Note the important things you want to change and the updates you want to make. Visit this site www.realtor.com for great advice by speaking with your local real estate agents. Talk to your mortgage broker and consult with a property maintenance company and together make a capital investment strategy.
Choosing the right mortgage broker that will help you get the right home loan, can mean the difference between thousands of dollars in your pocket, or the banks.
Quite simply, finding a good reputable mortgage broker can literally save you a huge amount of money on your next home loan.
Unfortunately some mortgage brokers will decide what’s best for them, as commission percentages vary across their network of lenders. Usually brokers will receive a small percentage from the lender, as a referring commission and it’s all too common for sharks to be in the industry circling for their next easy prey.
Don’t be fooled into taking the first loan option a broker presents you. You would want to get at least the top 3 options that meet your criteria, and ask the broker how these options best suit your requirements.
So with over 1800 home loans options on the market, we find out first hand the overwhelming decision means you’re probably going to consult with a mortgage broker. But how do your find a good one?
Look For Referrals
Redland Bay mortgage broker Mark Gregg says, “When you’re looking around for a reputable broker, ask your closest family & friends first. It would be uncommon if no –one close to you hadn’t dealt with a broker recently.”
“Client leads for mortgage brokers is very much aligned around referrals from friends and close family”
Consult With Multiple Mortgage Brokers
Making a purchasing decision involves learning what solutions the service provider can deliver you. It’s not uncommon to shop around for our everyday items, and that should also be the case when it comes to choosing a broker.
Test out & contact multiple brokers from the ones referred to you, and also by performing an online search for you’re nearest local brokers.
“Our surveys suggest that typically our clients have consulted with two to three different people before they make a commitment on moving forward with a loan application,” says Mark.
“It’s a process most people feel they need to do, to really get to know who they re dealing with, and whether or not they are there to listen to their needs.”
Mark also went onto say “align yourselves with a broker that is highly responsive, has a positive reputation, shows a real understanding of the finance industry and is up to date with all the latest loan products being offered.”
Make Sure Your Broker Has The Required Accreditations
It’s alarming to note how many brokers are doing business whilst not holding the relevant accreditations. Performing your own due-diligence will assure your dealing with a legitimate broker.
Things to look at include:
• Do they hold formal qualifications? (Cert IV in Finance & Mortgage Broking – minimum requirement)
• Are they a member of a professional Association? (Mortgage Industry Associations such as MFAA and FBAA)
• Do they have lender accreditations? (This includes being a member of a Aggregation / Dealer Group)
• Do they hold an Australian Credit Licence (ACL)
Perform Your Due-diligence
Making sure you tick off these tips on finding a reputable mortgage broker will give you peace of mind they will act on your behalf with your interests at first hand.
An expert mortgage broker should provide you with the necessary information to allow you in making an informed decision on a loan. They should facilitate a smooth transaction with little involvement from you.
As brokers will have access to a wide range of loan products, it is their task to find you the most appropriate loan that suits your circumstances.
Redland Bay mortgage broker Mark, summarises his profession by saying “Good brokers will follow the process of providing you an appropriate loan, seeking approval on your behalf and minimise the involvement of legal work & settlement hassles.”
What Is A Mortgage Broker And How Does Mortgage Brokerage Work?
Are you still undecided about using the services offered by a mortgage broker or even skeptical as to what a mortgage broker can even do for you? This article’s purpose is to educate you on how mortgage brokerage works, who a mortgage broker is and why you need one. We believe that after reading this, you will have a much better understanding about the services offered by a mortgage broker and consider using one for your mortgage financing needs.
Unless you do not live on planet Earth, you have probably come across the term “mortgage broker”. You may have heard good things and bad things been tossed around this topic. Regardless of what you might have heard, a mortgage broker is basically a middleman between a homeowner or lender and the mortgage lender or bank. Mortgage brokers work with both the lenders and the bank to help the borrowers qualify for a mortgage.
How Does Mortgage Brokerage Work?
Once you make contact with a mortgage broker and agrees to work with you, they will gather essential information such as employment documentation, income, the asset as well credit information. This is similar to the things a bank would require when giving you a loan.
Once you have given the broker all the important details, they will then determine what will work best for you. This includes setting an appropriate loan amount as well as determining which type of loan is ideal for you. Well, of course, you can decide on all this yourself if you choose, but the broker is there to help in getting you the best package.
When all the above has been polished, the mortgage broker will submit the application to a lender and work with them to gain approval. During the application process, they will communicate with you and the bank to make sure everything goes smoothly (like earlier mentioned, they work as middlemen). In fact, when you use a broker, you will not work directly with the lender and all correspondence will pass through the broker.
A mortgage broker earns money by charging a certain commission on the loan or even through upfront payments. Ideally, they can offer no cost loans through the use of a lender credit which will raise your interest rate on the loan but effectively eliminate the out of pocket costs.
How to pay your broker is upon you to choose, and you should, therefore, consult your broker and discuss the options before proceeding. What they charge varies greatly and so, it is imperative that you do your homework before working with a mortgage broker.
Why Use A Mortgage Broker?
Many homeowners try to shop their won mortgage by going in and out of the major lending institutions in the search for the best rates. However, this can be very time-consuming. Using the services of a mortgage broker will save you a lot of your valuable time as they will be in charge of finding the loan on your behalf. This way you can spend your time on something more productive.
One of the major considerations when it comes to shopping mortgage loans, is the credit score. Every time you to a bank or a lending institution, they are most likely to make a credit inquiry. Keep in mind that too many inquiries can negatively affect your credit score but mortgage broker will only make one inquiry and then forward it to the banks they are shopping.
The Best Rates
By using a mortgage broker, you are guaranteed that you are getting the best rates available. Mortgage brokers will only be on your side, and so they will only find you the best rates available. In addition to this, most banks will offer special rates to mortgage brokers only as a reward for bringing them millions per year in business.
In most cases, a mortgage broker will have your mortgage loan application approved within 24 hours at the best rates. And even though most banks approve individuals mortgage loans fast, it can sometimes take weeks trying to negotiate then down to the best rates.
Hopefully by now you are more educated than you were in the field of mortgage brokerage, how it works and how you can benefit from it. If you were skeptical about using one, now I am sure you have made a decision on what to settle for.
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