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09
Oct 12

First Home Buyers and Investors Now on an Easier Path

Pathway-to-house Not only is the Sydney property market heating up with the onset of Spring, but some new changes effective from 1 October 2012 will also really help to boost real estate sales, and to give new home buyers a real helping hand to break into the real estate market, especially in the low to middle price range.

First Home Buyers that have been saving for a considerable amount of time to crack the Sydney property market can now access some significant government assistance that could help get them into their own home much faster. This, combined with the latest interest rate cut, and more banks returning to a 95% lend rate, means things are looking great for first home buyers.

These changes will also have a significant impact on the property investment market, with buyer confidence up as a result of these incentives, as well as the recent interest rate cut.

The First Home Owner Grant rules in NSW have changed and are now offering benefits worth up to a total of $35,000, broken down into a $15,000 cash grant, and up to $20,000 in stamp duty exemptions.

Here's the details:

The First Home Owners Grant (FHOG) – NSW

From 1 October 2012, first home buyers purchasing new property in NSW may receive grants and stamp duty exemptions worth up to $35,000, giving the chance for buyers, or investors, to get into the market far earlier than they may have dreamed.

There are two components to the concessions:

1. First Home Owner Grant (FHOG)

First home buyers purchasing new residential property below $650,000 are eligible to receive a Government grant of $15,000 upon settlement.

Dates applicable Cap amount Grant Property type

1 Jan 2011 to 30 Sep 2012 $835,000 $7,000 New or existing

1 Oct 2012 to 31 Dec 2013 $650,000 $15,000 New only

1 Jan 2014 + $650,000 $10,000 New only

First home buyers purchasing second hand properties are no longer eligible to receive any grant.

2. First Home - New Home Scheme (Stamp Duty)

From 1 October 2012 first home buyers purchasing new property below $550,000 or vacant land below $350,000 will be exempt from stamp duty.

First home buyers purchasing new property from $550,000 to $650,000 or vacant land from $350,000 to $450,000 will be eligible to receive stamp duty discounts.

Stamp duty concession Purchase price Property type

Exempt up to $350,000 Vacant land to build

Exempt up to $550,000 New only

Discount* $350,000 to $450,000 Vacant land to build

Discount* $550,000 to $650,000 New only

* Stamp duty discounts are calculated based on the purchase price. For each additional $1,000 in cost above the stamp duty exemption threshold, the full exemption will be reduced by 1%. Example: a new home purchased for $560,000 ($10,000 above threshold) would receive a 90% discount on the applicable stamp duty.

02
Oct 12

How to reap the maximum benefit from an interest rate fall

money-falling-from-sky Here are some simple steps on how you can maximise the financial benefits from an interest rate cut.

With the Reserve Bank of Australia (RBA) cutting interest rates this week, now is a good time to reassess your finances and ensure you are making the most of the latest interest rate cut.

The following strategies will help to maximise the financial gains from a rate drop:

Use the extra cash wisely

The 0.25% rate cut means a $600 saving per year in payments for the average Australian mortgage holder with a $300,000 loan.

That extra money can be used to pay off a home loan faster, or quickly help to knock down unwanted credit card debt.

Don't fix your rates yet

With banks and credit unions offering fixed rates home loans as low as 5.62% for 3 years the banks must be predicting further rate falls.

The big banks are predicting a record profit for next financial year. They don't make these profits by offering investors a fixed rate that they lose money on!

Time to consider your next property purchase

When rates drop, consumer confidence bounces back. The property market has been in a slump, which has given buyers the upper hand in negotiations.

This makes it a great time to buy before people start to really clamour back into the market.

Interestingly, many experts are tipping the RBA to continue to drop rates over the remainder of 2012.

Time to start investing

Some investors had set up their budgets so that they were getting by with mortgage interest rates of 7-8%. If rates continue to drop those people will begin to see they really have some serious extra money to play with.

Having less to pay on holding costs puts investors in a great position to pay off other debts to consolidate their position before making their next investment.

Now is a great time to assess your position, and make some changes to put yourself in the best possible financial place for the remainder of 2012.

03
Sep 12

Energise Good Sports For Sports

boy-with-soccer-ball Ballet lessons and swimming for this one, soccer and piano lessons for that one, requests like "can I just do gymnastics and jazz dancing too this term?", school holiday fees, childcare fees, extra money for school excursions, kid's birthday presents....ever feel like the need for those little family extras is like a bottomless pit? The truth is, family life is far more full these days, with the desire for kids to do so many great activities and sports on offer. But they all take a hefty toll on the family budget don't they?

That's where 'Energise Good Sports For Sports....(and Music...and Art...and....)' can help! We recognise the value of these extra things for kids (and for you for that matter!), and we want to help. We'd like to refinance your home loan so you have some more money in the kitty for all of these great pursuits. PLUS, refinance and we will also pay for your child's extra-curricular activity for a term for you (to the value of $150)! (* Loan must settle to qulaify).

It's a win-win for you - less money to pay out on your home loan, AND a free term of activities too. Contact us for a chat on how we can help you.

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First Home Buyers and Investors Now on an Easier Path

How to reap the maximum benefit from an interest rate fall

Energise Good Sports For Sports

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