Are you a first home buyer or looking to buy a home as an investment property? You may be wondering how to choose the best home loans in 2023 considering the borrowing challenges in Australia at the moment.
Before deciding on a home loan, it may be beneficial to compare a range of home loan features to be sure that you are choosing the best fit for you and your needs, consider the predicted biggest borrowing challenges and implement some tips for securing home loans from our experts at Greenline Home Loans.
Factors To Consider When Choosing A Home Loan
There are many home loan features that you may wish to consider when you are choosing the best home loans in 2023. Once you have a few home loans you are considering, it may be beneficial to compare the features of each home loan to make a final decision that is best for you and your needs.
- Interest rate
An interest rate refers to the rate paid due to borrowing money from a lender. Your interest rate may be affected by the principal amount, your loan repayment type and whether your interest rate is variable or fixed.
- Repayment options
For a home loan, you will generally have the option to make repayments weekly, fortnightly or monthly. Your repayments refer to the amount of money you need to pay the bank or lender each month for your home loan. You may have the option to make interest and principal repayments or interest-only payments depending on your preferences and circumstances.
- Fees and closing rates
When obtaining a home loan, there are various costs and fees which may be relevant. When opening a loan, application fees, valuation fees, Government charges, conveyancing fees and legal fees may be applicable. In certain circumstances, you may have annual fees to pay depending on the terms of your loan, along with exit fees when you end the loan or refinance.
- Length of the loan term
In Australia, the current length of a loan term is generally between 25 and 30 years. The length of a loan term is dependent on the deposit amount, cost of the property and mortgage lenders.
- Credit score and income requirements
Many lenders will consider the previous 6 months or so of your credit history when approving your application for a loan. Your credit score is a measure of how trustworthy you are as a borrower and will showcase your history of repayments.
- Possible additional features
With some home loans, you may be eligible for additional features which will benefit you in the long term. Additional features for some home loans may include the ability to make additional repayments of your home loans without incurring a penalty fee or being able to utilise an offset account where income and expenses can be deposited to reduce the overall amount owing on the home loans.
Determine which option is best
Biggest Borrowing Challenges in 2023
When searching for home loans that suit you, it is important to understand the possible risks and the biggest borrowing challenges people will likely face this year.
With the drastic increase in interest rates due to the current economy in Australia, it has been becoming increasingly more difficult for Australians to consistently meet their mortgage repayments causing them to miss payments and negatively impact their credit score. Once homeowners miss any of their repayments, the risk of receiving bad credit increases which may also reduce their chances of borrowing in the future or refinancing due to lenders looking at the previous 6 months’ worth of repayment history.
Another borrowing challenge that is set to affect homeowners in 2023 is less borrowing power. It is predicted that due to the increase in interest rates, borrowers are now assessed at a higher buffer rate. Many people are considering consolidating all of their debt such as credit cards, into one repayment which in turn will pay a lower interest rate for one mortgage.
Considerations Before Applying for Home Loans
Before you are ready to apply for your home loan, there are various aspects to consider to ensure you are ready to progress through the process. You may wish to gather all relevant and required documentation such as proof of identity and income statements in advance to ensure you are not missing anything that will be required for the loan to be approved.
When you are in the process of being approved for a home loan, the lender will take into account your credit score. Some people may wish to review their credit report and history to understand where they stand before the application process begins.
Secure the best home loans
Tips for Securing Home Loans
There are many factors to consider when choosing the best home loans for you and your specific needs. When considering the factors mentioned above, it may be beneficial to compare your shortlist to ensure you are making the best decision for you both financially and personally.
If you are a first home buyer, it is important to research to understand what is available to you and the eligibility requirements for your specific state and circumstances. At Greenline Home Loans, our team is available to assist first-time home buyers with understanding and accessing the First Home Buyers Assistance Scheme and the First Home Owners Grant for a new home.
Reach out to Greenline Home Loans today!
Whether you’re looking to purchase an investment property, require information on the best home loans, or you’re a first home buyer looking for expert advice, get in touch with our team of experienced brokers at Greenline Home Loans. With access to 50 lenders and a strong relationship with several major banks, we can always assist you and offer a customised solution that will meet your needs.
At Greenline Home Loans, we will tailor the best solution for your requirements, and take you through the entire process from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Are you searching for the best home loan rates as a first-home buyer? There has been a major boom in Australia’s housing market over the last 2 years which has impacted individuals wanting to buy their first home or investment property making it difficult to understand the ins and outs related to first-home buyer options and available home loans.
Understanding the schemes and options available to assist property buyers who are in the process of searching for the best home loans can be difficult and daunting. This is why the team at Greenline Home Loans have devised this guide to assist you with advice and options available for both first-home buyers and those looking for home loans for investment properties.
First Home Buyers Assistance Scheme
The first home buyers assistance scheme aims to provide a concessional rate for stamp duty or an exemption for the full stamp duty cost depending on specific circumstances. The first home buyers assistance scheme is suitable for those who are purchasing an existing home, purchasing a new home or intending to build a new home on existing vacant land.
It is important to ensure you meet the eligibility points and further requirements for the first home buyer assistance scheme before applying. Reach out to the team at Greenline Home Loans today for assistance with understanding the best home loan rates and the various features available such as redraw facilities, unlimited additional deposits and low-rate home loans.
First Home Owners Grant
The first homeowner’s grant is a national scheme for people buying their first new home. The purpose of the grant is to offset the outcome of GST regarding home ownership. Each state or territory manages this national scheme under specific legislation and may have certain requirements.
When applying for the first homeowner’s grant, it is vital to ensure you are eligible in regard to the state or territory where you are looking to buy or build your first home. Under the scheme, eligible first-time homeowners are eligible for a one-off subsidy payment towards their new home.
Residential Investment Property Loans
If you’re looking at purchasing an investment property, there are several benefits of acquiring a residential investment property loan such as:
- Repayment holiday – in a situation where a property is unoccupied, a repayment holiday may be used (generally up until 12 months) where you can take a break from making repayments
- Offset account – many investors utilise an offset account as a replacement for their everyday account which may act as a savings account. The balance on your offset account will reduce the interest you are charged.
- Interest-only payments – interest-only home loans allow buyers to pay interest for a specific amount of time (generally 5 to 10 years), meaning the saved money can be used for additional investments.
- Line of credit facility – line of credit facility allows you to have access to a predetermined amount of credit allowing you to apply for additional money without having to apply for an additional loan. This borrowed amount will be secured against the equity you have in your existing property.
To find out more about the options for purchasing an investment property, reach out to the friendly team at Greenline Home Loans who can answer any questions you may have and guide you through the process!
The Process Of Applying For A Home Loan As A First Home Buyer
Applying for home loans as a first home buyer can be daunting and stressful when you are unaware of the best home loan rates and the process of obtaining them. It is best to engage with a mortgage broker as soon as you are ready to investigate home loans as the mortgage broker will assist you with finding the right lender, understand your circumstances and needs and will start the application process and begin filling in the required paperwork with you.
A mortgage broker will ensure they find the best home loans for your specific circumstances and financial position to meet your goal of buying your first home or investment property. When you first meet with your mortgage broker, they will need to understand your credit score, your income, and other financial information to give you relevant home loan information, which is why it is important to prepare as much information as possible beforehand. From here, your mortgage broker will inform you of how much you will require for a down payment depending on your personal circumstances and the details of the property you are wanting to purchase. After these steps are complete, your mortgage broker will be able to advise you of your monthly repayments and assist you with the application process.
Reach out to Greenline Home Loans today!
Whether you’re looking to purchase an investment property, require information on the best home loans, or you’re first home buyers looking for expert advice, get in touch with our team of experienced brokers at Greenline Home Loans. With access to 50 lenders and a strong relationship with several major banks, we’re always able to assist you and offer a customised solution that will meet your needs.
At Greenline Home Loans, we will tailor the best solution for your requirements, and take you through the entire process from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Following the RBA’s final monthly meeting for 2022, a further 25 basis point increase in the national cash rate was announced. A further blow to Australian homeowners and prospective first-time home buyers, this saw the cash rate reach a 10-year high of 3.1%, a rate not seen since December of 2012. Introduced amidst huge inflationary pressures that have increased the price of household goods, the RBA’s decision will again see Australians face an increase in their monthly mortgage repayments.
It’s never been more crucial for you to secure the best home loan rates, and the talented team at Greenline Home Loans is ready to help you navigate these challenging times and secure a home loan that’s right for you. Regardless of the economic conditions, our team is committed to offering a solution that meets your needs and delivers an unparalleled level of service. Read on to find out how the team at Greenline Home Loans can assist you in these trying times.
Access to a Panel of Lenders
While the RBA’s monthly cash rate announcements work according to a pre-determined schedule, your need to secure the most cost-effective home loans can’t always be timed to perfection. Thankfully, our team is vastly experienced and has navigated many clients through troubling economic times, reaching deep into their panel of lenders to offer you the best home loans.
Contacting your local bank and inquiring about their range of home loans at this time will likely prove unfruitful, but by enlisting our team’s services, you’ll be able to access a range of home loan rates and options from a number of different lenders. The ability to shop around and select a mortgage that suits your financial needs is particularly important at this time, and our team is happy to assist in this process in any way possible.
Cost-Effective Service
While securing the services of our expert team is always a worthy investment, it’s important to remember that our services come free of charge until we find you the best home loan rates and secure you a home loan that meets your needs. Accessing our services without financial outlay is pivotal in these times when we pay through the nose for a wide range of products and services. It’s natural that you’ll want to watch your budget at a time when you’re seeking a new home, and using our cost-effective services is conducive to this.
Furthermore, our team can help you select home loans that meet your financial needs now and in the future. Many providers offer home loans that appear affordable in the short term but have a number of hidden fees and expenses that will be encountered at a later date, and we can inform you of these beforehand. We provide an end-to-end service and we’re committed to delivering you the most accurate and helpful advice, and this means we’re always honest and transparent with you, providing the pros and cons of each possible alternative.
By working with Greenline Home Loans among the troubling economic conditions we face, you’ll not only be securing the best home loans but instigating the start of a mutually beneficial long-term relationship. We always seek to offer our clients meaningful and personalised advice, and the circumstances we face are no exception to this.
A Single Point of Contact
The most recent alteration to the cash rate from the Central Bank was the latest of eight consecutive monthly increases, with the cash rate having experienced a 3% increase since May. In an uncertain and ever-changing economic climate, you must gain the advice and ongoing consultancy of an honest and informed mortgage specialist that is well-versed in the impact that these changes will have on home loans.
By partnering with our team, you’ll receive honest and transparent advice from one single contact point, and while we can offer you the best home loans, we’re also highly competent in a range of other financial services. While you may initially require information regarding the best home loans, we can also extend our services to offer our recommendations on any business and commercial loans you may require, assist with your self-managed superfund or offer our advice on asset finance.
In an ever-evolving economic situation where the future is difficult to predict, it pays to be in communication with a specialist team that can offer you the best home loans and deliver all the other financial services you need.
Reach Out to Greenline Home Loans Today!
If you have been considering buying your first home, buying a residential property or need help securing the best home loan rates, don’t hesitate to contact our experienced brokers at Greenline Home Loans. With access to 50 lenders and a strong relationship with several major banks, we’re ready to assist you and offer a solution that meets your unique needs.
At Greenline Home Loans, we individualise our services to offer you meaningful advice and solutions from the first day you seek the best home loan rates. Contact our friendly team of brokers to speak about securing the best home loans for your needs on 1800 705 505 today!
Investing in property has proven a hugely successful financial pursuit in recent years, with over 1.8 million Australians currently owning an investment property. Offering a wide range of benefits from a consistent passive income to the several tax benefits you may accrue, property investment is a fantastic method of making your money work for you! However, these investments are only effective when you invest in the property that is right for you.
In choosing your investment property, there are a number of factors you need to keep in mind, and it’s natural for you to think, “is there a mortgage broker near me to help me through this process?”. Thankfully there is, and the team at Greenline Home Loans has devised the following tips to help you make these important financial decisions.
Desired Location
Where you’re a pair of first home buyers or a seasoned investment professional, an absolutely crucial factor to consider is location. When you’re searching for your investment property, you must ensure you select a location that has both tenancy demand to secure the property’s immediate future, and owner-occupier demand to ensure you will be able to sell the property in the future.
A deal-breaker on location is its proximity to transport links to ensure a smooth and easy commute for your tenants, whilst also ensuring that key lifestyle facilities are within arms reach of the property. These may include parks, shopping centres, restaurants and cafes. The closer your investment property is to these key facilities, the higher your rental yield is likely to be.
It’s important to also consider whether the area is likely to provide you with capital growth, as choosing the right location can account for 80% of your property’s capital growth. By investing in a growing locality, most favourably before it is subject to high demand, is a great way to ensure your investment property experiences capital growth throughout the duration of your investment.
Property Type
In searching for your investment property, it’s vital that you consider which property type will suit your budget, but also the demand conditions that the location is likely to be subject to in the future. For instance, investing in an area with an older population may mean that investment into a townhouse property spanning over three levels may not be the wisest investment decision.
By the same token, investing in an area populated by young families of first home buyers and high tenancy demand makes the purchase of a property with ample living space a suitable decision. To maximise the return you receive on your investment, it’s always important to purchase a property that is likely to satisfy the demands of the individuals most likely to reside within the area. Contacting the expert team at Greenline will help you gain a greater understanding of the demographics and demand patterns within your chosen area, and help you determine whether an apartment, house, or townhouse will best suit your expectations and the market demand.
Maintenance Requirements
Once you’ve decided upon the location and type of property you’d like to invest in, you must consider the additional costs and maintenance that will be associated with the occupancy of the property, just as you would if you were moving in yourself. Keep in mind that a home with a large garden and swimming pool will require greater effort and cost in preparing it for tenancy, and by holding greater maintenance requirements, you may be limiting your potential pool of tenants.
Similarly, an apartment situated in a luxurious complex with multiple, high-quality communal amenities will result in higher strata fees, and these expenses must be covered by the property owner rather than the tenant. This would limit your potential return and subject you to high recurring financial costs. Generally, investment into properties with minimal maintenance requirements and ongoing costs makes for a sound investment decision that will maximise your return.
Why Choose Greenline For Your Investment Property Home Loans?
Before you invest in a property, it’s crucial that you contact an expert team of lending professionals who can offer you individualised, specialist advice on your investment. If you require an investment property home loan to help finance the purchase of your additional property, look no further than Greenline, as we offer the lower rates on these all-important home loans, helping you secure your financial future with minimal hassle.
With many lenders in the market offering their services, it can be difficult to know which company is right for you. However, if you’d like to invest in property but you’re in need of expert advice from a company that will make the process easy to understand and reduce your stress, a simple search for a “mortgage broker near me” will direct you to our devoted team of professionals.
Reach out to Greenline Home Loans today!
Whether you’re looking to purchase an investment property, require information on home loans, or you’re first home buyers looking for expert advice, get in touch with our team of experienced brokers at Greenline Home Loans. With access to 50 lenders and a strong relationship with several major banks, we’re always able to assist you and offer a customised solution that will meet your needs.
At Greenline Home Loans, we will tailor the best solution for your requirements, and take you through the entire process from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Why Is Leveraging In Property Lucrative?
Financial leverage refers to borrowing money in order to achieve bigger property growth and investment. It allows an investor to place more money into purchasing an asset than they otherwise would have been able to. Ultimately, this creates the possibility for increased gains.
The bounds for using leverage is that by obtaining serval sources of capital, an investor is able to enhance the prospective return generated on their equity and unlock deals at a scale otherwise inaccessible due to capital constraints.
So how does leveraging in property work?
If you are a first home buyer and you have, for example, applied for a loan of $250,000, you can use this money to purchase an apartment outright. You would then obtain a strong cash flow that an unmortgaged investment would bring in due course. On the other hand, you could use this money to place a deposit on five separate apartments. Presuming that these properties that you purchased were bought in a prime location with the potential for growth and had neutral to positive cash flow, all of these five properties would admirably be looking after themselves in regard to cash flow while also increasing in value in the long term.
Benefits Of Leveraging In Property For A First Home Buyer
- You Get More For Less
In instances where you place all your cash into one investment property, that is it. Whereas, in cases where you leverage in property, you have the option to go for another property. You have the ability to obtain extra mortgages meaning you are able to own several properties. Assuming that each of these properties is acquiring reasonable returns, this would transcribe to more rental income and real estate wealth on your behalf.
- Less Risky
The power of leveraging in property lowers your risk. If you use all of your cash to obtain only one property investment and it does not perform well, it can result in a bad investment decision, and you will be left with nothing. Contrastingly, if you obtain several leveraged properties, you will still be acquiring income in the chance that one or two of your properties perform poorly.
- Tax Benefits
On the occasion that one of your tenants decides to relocate, you will be left to offset the expenses that go along with it. You will certainly be making negative cash flow, but with many investment properties in your portfolio, you will be able to make up this income from the rest of your investments in order to offset such expenses.
Be Smart With Leveraging & Minimise Risk
In order to get the most out of your investment, you should be highly meticulous in minimising your risk and maximising your investment. Here are some tips that investors should follow when leveraging in property.
- Purchase in metro areas where there is a demand for renters and a chance that properties are able to retain their value
- Purchase properties that have a potential for growth
- Buy properties that have a strong yield where they are able to pay themselves off
- Stay away from high-risk investment properties
- Have an exit strategy in place – if you had to sell quickly, would you be able to get your money back?
- Protect yourself against any unexpected costs – an adequate buffer in place, such as 2 months’ worth of rent
- Get a payment you will be able to live with – find a balance between your down payment and your monthly payments
- Be conservative in your appreciation expectation
How Can I Start Leveraging In Property Now?
Our mortgage brokers here at Greenline Home Loans are able to help you with the process of leveraging in property. When it comes to leverage, it is important that you have a clear and precise process and plan in place to figure out how you are going to set out your finances. If you plan on purchasing two investment properties, it is important that you have enough equity that allows you to cover the costs of the deposit, stamp duty as well as the buyer’s agent fees for both purchases.
Reach out to Greenline Home Loans today!
If you are a first home buyer, buying a residential property or wanting an interest-only residential home loan, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.
At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider leveraging a property. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Currently over 1.8 million Australians own an investment property and one of the main reasons is for the tax benefits they provide! An investment property is a real estate property which is purchased for the purpose of earning an income through the property in a range of ways which may include through renters or through resale of the property in the future.
Buying a commercial or residential property as an investment property is an exciting time – although to make the most of it it is important to understand the ins and outs of an investment property to make the most of tax benefits and other benefits available.
Benefits Of Making Investments In Properties
There are many benefits of investment properties with the main benefit being tax related. Many property-related expenses are tax deductible, which may include maintenance costs or fees paid on your residential or commercial loans.
Some key benefits of investment properties include:
– Rental Income
– Capital growth
– Tax advantages
– Negative Gearing
Having rental income from your tenants is a great way to ensure you have a regular income which is beneficial for cashflow. Landlords can claim a variety of costs including property maintenance costs, council rates, pest control, garden maintenance, agent fees, strata fees, land tax, advertising costs to find a tenant and more.
The main tax benefits and advantages which come with owning an investment property which is a rental property is that you can offset any losses on the rental property against your assessable income. It is possible to pay less tax overtime if the income you receive from the property is less than the expenses associated with owning the property as these costs will be deducted from the owner’s income.
Negative gearing is something to take into consideration when you have an investment property. Negative gearing refers to when the income from the property is less than the rental return, interest, or other related property costs. This can reduce your overall taxable income, meaning that you are reducing the amount of tax you may need to pay – overall saving money in the long run.
Claiming for depreciation on a negatively geared property can result in an improved tax position. This is due to when you claim for depreciation this can increase the overall loss of the investment property which can then be claimed as a tax deduction against personal income. Due to this, there will be a decrease in the investors tax liability and lead to a higher tax refund.
Reach out to the friendly team at Greenline Home Loans who can assist you with commercial property loans, accessing the best home loans, or a construction loan where the real estate property can then be used as an investment property for you to reap the benefits for.
Top 3 Mistakes To Avoid When Investing In Properties
To get the most out of your investment property it is best to understand your goals and financial situation. Here are some tips for 3 mistakes to avoid when considering an investment property:
1. Not conducting enough research
It is important to carry out sufficient research before acquiring a loan or buying a property which you are intending on becoming an investment property. It is important to research the location of the property you are wanting, the possible zoning requirements in the area you are interested in, the needs and requirements of possible tenants for your property, the condition of the property and more.
Ensuring you have undertaken sufficient research will ensure that you are well-informed about the property you are building or buying and are able to make the decisions based on factual evidence.
2. Not having a plan or strategy in place
It is always beneficial to have a plan or strategy in place regarding your investment property. Real estate can appreciate in value, although time is needed for this to happen. Generally, the longer you are in the market, the higher your capital gains will be. Therefore, it is important to set a plan for if you are planning to invest long-term.
3. Not calculating finances effectively
It is important to ensure the property you are building, or buying is a good financial decision for you long-term. Ensuring you can afford the payments required and maintenance costs by setting aside money or creating an emergency fund can limit financial hardship which may occur.
Speak to the friendly team at Greenline Home Loans who are able to assist with commercial property loans, the best home loans available or construction loans to begin with when you are considering an investment property.
Reach out to Greenline Home Loans today!
If you have been considering buying your first home, buying a residential property or wanting an interest-only residential home loan, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.
At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Have you recently been looking into the best home loans or commercial property loans for a possible investment property? Are you wanting to learn more about positive gearing and negative gearing and the effect this can have on your finances and properties? The team at Greenline Home Loans can help!
This article will help you understand what gearing is, the features of positive gearing and negative gearing, the benefits of both and tips to keep in mind to get the most out of your investment property.
What Is Gearing?
Gearing refers to when you borrow money to invest and is most commonly referred to when speaking about investment properties. Positive and negative gearing refers to when somebody buys a property, often an investment property, which is then rented out or brings in a form of income. Both positive and negative gearing strategies can have benefits and drawbacks, making it important to consider which best suits you, your personal circumstance including your income, debts, and financial position as well as your risk preferences.
What is Depreciation?
The depreciation of a property refers to natural wear and tear over time of a building’s structure and assets, which property investors can claim as tax deductions in each financial year. Depreciation is often linked to both positive and negative gearing as both depreciation and capital allowances are legitimate tax deductions which can be claimed.
The main benefit of depreciation for a property which is positively geared is the reduction in the amount of tax payable. When you claim for depreciation on a property, the profit you make on the property will be lower meaning less tax will be payable.
The main benefit of deprecation for a property that is negatively geared is an improved tax position. For a property which is negatively geared, when you claim for depreciation this can increase the overall loss of the investment property which can then be claimed as a tax deduction against personal income. As a result of this process, there will be a decrease in the investors tax liability which leads to a higher tax refund.
Whether your property is positively or negatively geared, there are several benefits of utilising a depreciation schedule. Reach out to the friendly team at Greenline Home Loans today to find out more!
Understanding Negative Gearing And Its Benefits
When the income from the property is less than the rental return, interest, or other related property costs, this is referred to as negative gearing.
The main benefit of negative gearing is that any net rental income you may lose throughout the year may be offset against your salary or other income you may earn over the financial year. When this happens, it reduces your taxable income and how much tax you will need to pay. Overall, if you have a reduced taxable income, this could save you money in the long run.
There are several other benefits of negative gearing which may include:
- Capital growth over time generally means the investment property should increase in market value
- An overall reduction in tax liability
- Having a regular income through the tenants
It is important to keep risks in mind when considering negative gearing such as ongoing ownership costs, initial purchase costs and the responsibilities tied with becoming a landlord. Reach out to the team at Greenline Home Loans who can assist you with covering which risks you are willing to take, the best strategy and how your personal circumstances and financial situation relate to applying for commercial property loans or a home loan.
Understanding Positive Gearing And Its Benefits
When the income from the property is more than the rental return, interest, or other related property costs, this is referred to as positive gearing.
If you are making more money in comparison to your net rental income and other property related expenses, this can leave you with more money in your pocket which is often used to ensure that loan repayments are met, although it can be saved to assist with paying for external things.
One thing to keep in mind regarding positive gearing is that your net rental income can be subjected to tax, which may impact the overall increase over time. It is important to consider your strategy and long-term goals when deciding on an investment property, which is why the team at Greenline Home Loans are here to help!
Consider Your Risks With Positive And Negative Gearing
It is important to consider your risks with positive and negative gearing strategies. In relation to negative gearing, it is recommended to choose your investment property carefully, you have a suitable income for the repayments you are required to make and for any property-related expenses and to consider any insurance you may require.
Reach out to the friendly team at Greenline Home Loans who will be able to assist with the best home loans and commercial property loans for an investment property. The team will be able answer any questions you may have about positive and negative gearing strategies and which route is the best to take for your needs, personal circumstances, financial situation, and preferences!
Reach out to Greenline Home Loans today!
If you have been considering buying your first home and are looking for the best home loans, buying a residential property, wanting an interest-only residential home loan or are investigating commercial property loans, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.
At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Interest-only residential home loans are residential mortgages where your monthly repayments are composed of only the interest that is charged by your lender.
They vary in difference compared to the traditional amortising loans, where monthly repayments are made up of both principal and interest. When both the principal and interest are paid, your loan balance is reduced during your loan term. Since interest is determined by the outstanding balance of your residential home loan, the specified amount of interest that you will be expected to pay will, in turn, also reduce.
On the other hand, when it comes to an interest-only loan, your loan balance during your loan term will not reduce due to the fact that your repayments will only cover the interest on the amount you have borrowed. Your loan balance is not reducing, and hence you will end up paying an increased amount of interest over the period of your loan.
If you are unsure if interest-only residential property loans are the right fit for you, we have outlined a few of the benefits that come along with an interest-only residential loan.
Very Suitable For Construction Loans & Valued-Added Projects
In the instance that an investor is constructing a property, there is a requirement to try and preserve as much cash as you can during the construction phase of the project. Correspondingly, a general construction loan contains a pre-funded interest reserve account from which interest-only repayments are withdrawn whilst the property is under construction. When the property has been built and has been tenanted, the payments of your loan change from interest-only to principal and interest in order to line up with the property’s enhanced income.
This notion is very similar when it comes to value-added projects. Investors have elevated upfront costs to renovate a property, and there is a necessity to utilise their capital for this purpose. Obtaining an interest-only loan is very beneficial for an investor as they are able to conserve their capital until the renovations are completed, and the property is capable enough to produce enough income to gradually write off the initial cost of the loan.
Stabilises & Advances Your Cash Flow
Prospering property investment is all about cash flow. Utilising an interest-only loan can enable you to be more in control of your cash flow over the period of your loan term. To make the most out of the compounding and leverage of your investment property, you need to hold your investment properties for an extended amount of time. Therefore, the only way to do this is by creating financial buffers or cash flow.
Interest-only home loan repayments allow you to pay the merest amount demanded by your loan. This then provides you with extra money in your pocket to pay for any added expenses such as council rates or repairs.
Allows You To Prioritise Your Debt Allocation
Interest-only loans for the purchasing of residential properties are very beneficial as it provides you with the ability to pay off your debt. Interest-only repayments indicate that you are servicing your loan whilst your property advances in value. Furthermore, these interest-only repayments are also deductible from your income, ultimately reducing your tax.
In the meantime, with an interest-only residential loan, you have the ability to pay off any non-deductible debt, such as your credit cards or your car. Paying these debts off should be a priority.
Use Of Offset Accounts Reduce Your Interest-Only Repayments Even Further
An offset account is a simple transaction account that enables you to utilise your surplus cash in order to offset against the interest applicable to your loan. They work by providing you with the ability to transfer any additional savings that you have into an account that is then linked towards your mortgage. This extra cash is used to counteract your mortgage and hence minimises your interest repayment amount.
Proves To Be Very Tax Effective
In Australia, it is acceptable for all investors to claim back any costs that are linked with owning assets, and this does involve interest on residential investment property loans. In regards to property investors, the interest element of their residential property loans is added to the annual costs of retaining a real estate investment. Needless to say, this is offset by the income that is obtained through rent.
Making use of interest-only residential home loans makes it effortless to determine what your annual repayments are.
Reach out to Greenline Home Loans today!
If you have been considering buying your first home, buying a residential property or wanting an interest-only residential home loan, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.
At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!
Home equity refers to the difference between your home’s current market value and your mortgage balance. As a very important element for your financial future, home equity helps you to build wealth. Retaining equity in your home acts as a resource where you are able to borrow against it in order to enhance your property or simply to pay off any high-interest debts.
What Are The Benefits Of Unlocking And Accessing Home Equity?
Low-Interest Rates
Favourably enough, home equity loans don’t entirely rely merely on only the lender. Financial institutions, including banks and brokers, hand out loans in a way that guarantees a sure return for both themselves and their clients. So, in saying that lower interest rates are offered for home equity loans as compared to other loan types. These low-interest rates prove to be very beneficial on your behalf if you do not have high-interest debt on your credit card. When applying for a home equity loan with Greenline Home Loans, you can ensure that you will receive the best home loans.
Ability To Fund Home Renovations
Several homeowners unlock and access their home’s equity to aid in funding a home renovation. If done in an accurate manner, not only is there a possibility to boost a property’s value by more than what is spent, but it can also save you the hassle of having to upsize your home and having to go through the whole inconvenience of selling, buying and moving.
It is crucial to keep in mind to do your research before carrying out such renovations. Ensure that you are careful with your budget, as overcapitalisation – the amount spent for renovations ends up costing more than the value they add to the property – is a very common mistake for amateur renovators.
Power To Borrow Large Sums Of Money
There are individuals who have excellent credit scores that may need to borrow against the value of their home in order to receive a large sum of money. Accessing your equity from the value of your home provides you with easy-to-obtain large sums of money that you may not qualify for through other avenues. If you find yourself in a position where it is necessary to borrow a large sum of money, then a home equity loan would be an excellent option for you.
Home Equity Line Of Credit For Business
If you are searching for something a bit more flexible, a home equity line of credit (HELOC) for your business is a great solution. As compared to standard commercial loans, HELOCs can provide you with the ability to access funds at your convenience, and you are able to take out extra as needed without any retributions.
When it comes to a HELOC, the application and approval process is generally much more trouble-free in contrast to other alternatives. As with a home equity loan, there is a chance that the interest within this loan will be tax-deductible, and the loan terms usually span from 15 to 20 years.
Great Opportunity To Purchase A Commercial Property
If you have owned your home for a few years, there is the possibility that you have built up enough equity. This is a worthy resource when it comes to property investment. Your home equity can be used instead of a cash deposit to buy another property.
Once you have decided on your commercial loan with Greenline Home Loans, we will work closely with you to get this application process underway and support you all the way through to settlement.
How Do You Unlock and Access Home Equity With Greenline Home Loans?
Below we have summarised the various steps that are involved with unlocking and accessing your equity with Greenline Home Loans.
- Determine how much equity is available in your property
- Work out the amount of equity that is accessible with your mortgage broker
- Evaluate the various loan options with your mortgage broker
- Calculate the costs associated with accessing such equity
- Loan application and settlement
- Access your equity and utilise it for any purposes you feel best
Reach out to Greenline Home Loans today!
In an instance where you may need to borrow some money to achieve some personal goals like renovating your home, purchasing a new car or even travelling overseas, releasing equity from your property is a very favourable option. Here at Greenline Home Loans, you can rely on us for the best home loans with the lowest home loan rates and customer service that you will value for the life of your loan.
If you have been considering buying your first home, buying a residential property, are after a commercial loan or want to access the equity in your home, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.
At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a cash out – equity release. Contact our friendly team of brokers to speak about our low-rate, best home loans on 1800 705 505 to get started today!
In the past year, property prices across Australia increased dramatically by 23.4%. Those buyers who are on a tight budget are particularly longing to uncover a real estate bargain.
In New South Wales, one of the cheapest areas happens to be Mannering Park, located on the state’s central coast, where the median house price is set at $614,000. Proven that it has a direct position on Lake Macquarie with numerous recreational activities available in its surrounds, Mannering Park is a holiday hotspot at its finest. With a thriving population, great schools, and close proximity to the M1, this location is perfect for those who are searching for a change of scenery and is a good chance for those first home buyers wishing to step foot in the market or for those who wish to retire in an amazing waterfront location.
The cheapest metropolitan suburb overall within NSW is that of Emerton, located in Sydney’s West, with a median house price of $580,000. Other areas in close proximity in the Blacktown region with low median house prices are Lethbridge Park ($602,500), Blackett ($605,000), Tregear ($607,500) and Bidwill ($608,750).
Among the cheapest metropolitan suburbs for units within NSW happens to be Warwick Farm, with a median house price of $358,000, followed by Wiley Park, with a median price of $378,000.
Moving along to Melbourne, the cheapest metro suburb to purchase a house in was Millgrove, located in the city’s outer east, with a median house price of $531,000. With a very friendly neighbourhood, access to the river, mountain bike tracks, great supermarkets and dining options, Millgrove has so much to offer.
The suburb of Melton, in the city’s west, was Victoria’s cheapest suburb for houses overall, with a median price of $450,000, followed by Kurunjang ($486,000), Melton South ($500,000) and Coolaroo ($500,000).
The cheapest metropolitan area for units overall is the suburb of Albion, in Melbourne’s west, with a median unit price of $285,000, followed by Melton South ($321,250) and Melton ($346,00).
When it comes to South Australia’s list of cheapest suburbs, Elizabeth North has a median price of only $209,000. Elizabeth North is described as a hidden treasure, particularly for first home buyers and savvy investors.
Salisbury was noted as South Australia’s cheapest suburb for units, with a median unit price of $255,000.
Moving down to Tasmania, the Australian state with the cheapest suburb for houses, Bridgewater documented a median house price of $377,875. With good amenities such as shopping and parks to a popular private school nearby, the demand for houses within Bridgewater has continuously increased. The area has become more and more popular.
Hobart’s suburb of Claremont ranked the state’s cheapest for units, with a median price of $403,500.
Transitioning to booming Queensland, there have been no major Brisbane suburbs on the state’s list for the cheapest areas for a house. Russell Island, located southeast of Brisbane, comes in on top with a median house price of $255,000, followed by Laidley ($271,500) and Riverview ($300,000).
In regards to units, some of the lowest metro area median prices in the Sunshine State were Woodrige ($181,158), Goodna ($221,000) and Brassall ($240,000).
Reach out to Greenline Home Loans today!
If you have been considering buying your first home, buying a residential property or wanting a residential investment property loan and are looking for the best home loans, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.
At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider purchasing an investment property with your super. Contact our friendly team of brokers to speak about low rate home loans on 1800 705 505 to get started today!