https://www.integrilend.com.au https://irp-cdn.multiscreensite.com/1ecb1591/dms3rep/multi/integrilend-social-image.jpg https://www.integrilend.com.au https://www.integrilend.com.au/melbourne-city-a-snapshot-of-the-future <h4> <span> </span> <b> Melbourne City, a snapshot of the future </b> <div> <b> by Rob Millar </b> </div> </h4> <div data-rss-type="text"> <div> <span> Melbourne City, and Regional Cities such as Geelong and Ballarat are recovering. Clearance rates at auction have improved significantly, and this has occurred without any external interference. The reasons are summarised below – </span> <br/> </div> <div> <ul> <li> <font color="#000000"> Return of the incumbent Government has created stability and much needed confidence </font> </li> <li> <font color="#000000"> Lending restrictions have eased </font> </li> <li> <font color="#000000"> Unprecedented population growth  </font> </li> <li> <font color="#000000"> Low interest rates </font> </li> <li> <font color="#000000"> Bipartisan approach to implement the greatest transport infrastructure program in Victoria’s history  </font> </li> </ul> </div> <div> <span> The removal of stamp duty savings buying off the plan for investment, the “prohibition” approach of foreign investment in Australia by Chinese nationals, and higher interest rates for investment have cruelled the building industry. This has led to a dramatic fall in new building approvals and experts are now predicting a shortage of new apartment accommodation in the future. Here is my snapshot – </span> <br/> </div> <div> <ul> <li> <font color="#000000"> Based on all of the above, my expectation is there will be robust capital growth across most housing categories, and higher yields. This a growth area for negative gearing but stay away from buying apartments off the plan. </font> </li> <li> <font color="#000000"> Without government support, 1st home buyers will continue to struggle, and will need to become more proactive approach to saving at a much earlier age or rely on parental support. This is a social challenge for the Government for which there are no short term answers. Unless the Government is willing to continue subsidising home ownership, like many other of the best cities in the world, home ownership will continue to become more difficult.  </font> </li> <li> <font color="#000000"> Regional areas of Melbourne will benefit most from the Governments transport infrastructure program. The end of the line cities such as Ballarat, Bendigo, Geelong and even suburbs such as Frankston will have the most to gain compared to the areas in between. This is an ideal entry level opportunity for 1st home buyers which is being supported by a government funded regional home buyers grant. </font> </li> <li> <font color="#000000">  This massive infrastructure spend will have little impact on Melbourne’s Inner City property values which are scarce by definition and not transport dependent. As a consequence, inner city real estate will continue to escalate in value. </font> </li> </ul> </div> <div> <span> In summary, Melbourne continues to be a robust place for investment, lifestyle and opportunity. It will remain one of the best cities in the world for many years to come, and I see no reason why real estate should not continue to be a key driver of wealth creation for home owners and investment. </span> </div> <div> <span> <br/> </span> </div> <div> <span> Other Articles: <a href="https://www.robmillar.com.au/robs-blog/" target="_blank"> https://www.robmillar.com.au/robs-blog/ </a> </span> </div> <div> <span> Author: <a href="https://www.robmillar.com.au/" target="_blank"> Rob Millar </a> </span> </div> </div> Wed, 14 Aug 2019 05:57:51 GMT https://www.integrilend.com.au/melbourne-city-a-snapshot-of-the-future thumbnail main image https://www.integrilend.com.au/preparation-for-purchasing-a-property <h2> Getting ready to buy a property </h2> <div> <img src="https://irp-cdn.multiscreensite.com/1ecb1591/dms3rep/multi/realestate-158137817.jpg"/> </div> <div data-rss-type="text"> Entering the property market can be quite a daunting experience for all purchasers and especially first time purchasers. What to do and what not to do? So much jargon, what does it all mean? Who can you trust? Who do I need to help? What should I do to help put myself in the best position to get a loan? </div> <h2> <font color="#415bd1"> <span> <i> There are two fundamental starting points: saving for a deposit and having enough income to service a loan. This is a simple starting point for us to start a conversation on a not so simple topic. </i> </span> </font> </h2> <div data-rss-type="text"> <span> <font> - Melinda Nash </font> </span> </div> <div data-rss-type="text"> <div> Before we begin, it is important that I point out that much of this article is an opinion only and that as a licenced mortgage broker I can formally provide credit advice but not financial or other advice. Please seek advice from your financial planner and/or accountant or solicitor on any issues raised unrelated to lending. Please also note that lending policy varies significantly between lenders so there may be some variation to the norm that is portrayed here. </div> <div> <br/> </div> <div> <b> Saving and your deposit </b> </div> <div> When saving for a deposit, a regular savings plan is a good plan. Pay yourself first. Set up a regular automatic transfer from the bank account that your salary goes into, to a savings account. Set up that savings account so that access is limited. When establishing the amount of your "pay yourself first" figure, analyse your mandatory, basic and discretionary expenses. Limiting your discretionary living expenses ie. uber eats and retail shopping may be the key to saving for your home. During this period, another very important factor is to pay out any current debts as soon as possible including personal and/or car loans and ensure that no further loans, credit cards or leases are taken out as these will reduce your borrowing capacity. All debts, credit facilities and credit cards are treated as being completely at their limit by a lender regardless of their actual outstanding balance so the absence of these will increase your borrowing capacity. </div> <div> <br/> </div> <div> The most common lending structure is for a bank to lend up to 80% of the value of the property that you are purchasing. In this scenario, your savings would need to equal the remaining 20% owed to the seller (otherwise known as the vendor) plus any stamp duty that is payable to the State Revenue Office in your state. In order to estimate the stamp duty, you can access the online calculator provided by each state. </div> <div> <br/> </div> <div> In Victoria, it can be found here: <a href="https://www.sro.vic.gov.au/calculators/land-transfer-calculator"> https://www.sro.vic.gov.au/calculators/land-transfer-calculator </a> Please note that a government transfer fee is additional to this. In this scenario, the lenders mortgage insurance is paid by the lender. </div> <div> <br/> </div> <div> As a first home buyer, it is common for lenders to allow the borrowing of up to 95% of the property value (known as loan to value ratio (LVR)) inclusive of lenders mortgage insurance (LMI). All lenders have policy differences on this but currently there is one lender that will allow borrowings up to 98% loan to value ration (LVR) at the time of writing. If you have a direct family member that will allow the use their property as additional security for your loan, then it is possible for your loan to be up to 110% of the purchase price so can include stamp duty (if applicable) or renovation or other costs. Family pledge is another topic to refer to. </div> <div> <br/> </div> <div> Lenders Mortgage Insurance is paid on all loans. If the LVR is 80% or less, the lender will pay the LMI on your loan. If your loans is greater than 80% LVR, then you are responsible for paying the LMI. It can be significant. The closer the LVR is to 80% the lesser it is and the opposite is also true. </div> <div> <br/> </div> <div> <b> Income </b> </div> <div> The lenders will assess your ability to service your loan (make your loan repayments) based on loan interest rates in excess of current interest rate that might apply to your loan so it is shown that you can weather several interest rate rises without putting your ability to meet your loan repayments without effecting your quality of living. While current interest rates applicable may be 3. something %, the servicing rate will be 5-6. something%. Income that can be used in this assessment can be as simple as one payslip but is usually two. Other factors that will be taken into account are; have you been with this employer for at least 6 months and are no longer on probation, have you been in the same industry for a minimum of 2 years, if you receive bonuses, commission payments, allowances etc. have these been received for at least 2 years, do you work in the emergency services, health or education sector and do you have any changes in employment in your future. So, changing employers just prior to the lodgement of a loan application is not a good idea. </div> <div> <br/> </div> <div> If you are self-employed, most lenders (but not all) will require at least 2 years of self employed tax returns and financial reports (if applicable) and ATO Notices of Assessments. Lenders vary in their treatment of these but it is common for the most recent two years to be averaged, if the most recent year is lower then this will be used or if the most recent year is greater then the lesser year plus 120% to be used. Some expenses will also be allowed to be "added back" including some one off expenses and depreciation. Please consult your mortgage broker so they can help sort through these complex issues. </div> <div> <br/> </div> <div> <b> Living Expenses </b> </div> <div> All lenders will ask for information regarding your cost of living. They will be required to be broken down into expense types and then broadly into discretionary and non-discretionary. Some lenders will also ask for 3 months of your transaction statements such as your cheque account and credit card statements to demonstrate that your expenses are what you say they are. In the lead up to your loan application, it is wise to contain spending to necessary expenses and hold back on excess discretionary expenses such as uber eats which may increase your monthly living expenses and reduce your borrowing capacity if the lender views this as an ongoing expense. When presenting your living expenses, it is worthwhile to analyse, break them down and highlight any that are once off (ie. new air conditioner) or only occur irregularly (ie annual house insurance) and therefore should be re-calculated as to what the actual monthly expense would be. There will be no consideration of reduced entertainment living expenses when you have a new home and are more likely to prepare meals at home, for example. </div> <div> <br/> </div> <div> <b> Conditional Approvals </b> </div> <div> A conditional approval from a bank or lender will provide a borrower with some comfort, without it being a concrete guarantee, giving some confidence when the borrower is committing to a contract of sale. A conditional approval involves presenting your set of circumstances to a lender, them assessing them and agreeing that, given the circumstances presented, they believe that they may lend to you. Conditional Approvals last for between one and six months. They can be extended by showing that circumstances haven't changed by providing updated payslips, for example. It is strongly recommended that a conditional approval is achieved before making a commitment to a purchase. </div> <div> <br/> </div> <div> <b> Legal </b> </div> <div> A Contract of Sale will need to be signed to purchase a property. This purchase will likely be one of the most significant purchases you will make. It is imperative that all purchasers have appropriate and skilled property and conveyancing legal advice. Your solicitor should check the Contract of Sale before you sign it. They may make recommendations regarding new special conditions and bring to your attention factors about the property that may not be evident during an open for inspection such as easements or planning issues that affect your potential property. They may also recommend clauses such as "subject to finance" or a reduced deposit payable if the successful purchaser. </div> <div> <br/> </div> <div> Your mortgage broker works for you. They can recommend connections for you to ensure that your interests are well served and independent to the property transaction. Your broker will be able to make an assessment as to your approximate borrowing capacity. These vary lender to lender as they all have differing policy and assessment criteria and servicing buffers. Only a lender application can confirm this. Your broker will package your loan application relevant to your needs, choosing the best lender based on the policy that best suits your circumstances and at the lowest cost to you. The ultimate choice of lender though is yours. Once selected, they will then present your story to the lender adding value as to why you are a valuable future client for the lender as part of the application and supply of supporting documents process. </div> </div> Wed, 14 Aug 2019 05:57:49 GMT https://www.integrilend.com.au/preparation-for-purchasing-a-property thumbnail main image https://www.integrilend.com.au/preparing-to-rent <h2> Tips to prepare your property for lease </h2> <div> <img src="https://irp-cdn.multiscreensite.com/1ecb1591/dms3rep/multi/plumber_sink.jpg"/> </div> <div data-rss-type="text"> We partner with many business in the property sector. Direct Property Group are a boutique family real estate business that provide personal attention and a highly professional approach. </div> <h2> <font> <i> <span> It’s an exciting and busy time for you. You are looking at renting out your property and finding the right tenant is an extremely important part of the process so lets not forget some of the things that help make the tenant select your property over others and really happy before they move in.. </span> </i> </font> </h2> <div data-rss-type="text"> <span> <font> - Elishah Luci from Direct Property Group </font> </span> </div> <div data-rss-type="text"> <b> Clean as a Whistle </b> <div> There is nothing worse than a tenant seeing a dirty house at an open for inspection. This tells the tenant that the landlord doesn’t take much care of the property. As a rule of thumb the tenant is expected to leave the property in the same condition as when they moved in. If it is leased unclean, expect to find it in the same if not worse condition when the tenant vacates. Pay special attention to the kitchen including appliances and the bathrooms (especially the shower screens), always steam clean carpets and leave the receipt with the property manager as the tenant will be required to provide a receipt when they move out too. </div> <div> <br/> </div> <div> If you are time poor speak to your property manager and ask them to arrange a cleaner for you; it will be money well spent. </div> <div> <br/> </div> <div> <b> Repairs and Maintenance </b> </div> <div> If you have moved out of a property and have decided to lease it, try and address any potential issues that may need repairing. It is often the case that you have put up with the loose cupboards but it doesn’t mean your new tenant will. If you have a vacating tenant, it will be important when undertaking the final inspection to thoroughly review each aspect of the house. Attempt to open all doors, turn on all light switches and repair what is required; or have the vacating tenant attend to it, where possible under the Act. </div> <div> <br/> </div> <div> <b> Services and Utilities </b> </div> <div> It is a good idea to disconnect the utilities at a property when the occupier has moved out. Don’t forget to request a final reading and turn off the power at the mains, so that it is ready for the new tenant to have it connected in their name. </div> <div> <br/> </div> <div> <b> Insurance Cover </b> </div> <div> If you haven’t already done so, we always recommend to our landlords to take out property specific Landlord Insurance. This can cover you for such things as malicious damage by the tenant, loss of rental and replacement of fixtures and fittings. All insurance covers vary, so speak with your insurer or property manager about which provider they have worked with in the past to compare policies carefully. </div> <div> <br/> </div> <div> <b> Instructions Booklet and Helpful Hints </b> </div> <div> We have all been in the situation where we have moved into a new house and can’t work out how to use something. The oven, dishwasher or even the alarm can be a source of frustration and unnecessary phone calls. If you can take the time to write a few simple tips on how to use the appliances, car park entry, alarms etc. this small act will go a long way. Something else tenants will appreciate is a list of local cafes/restaurants that you have tried and would recommend. I’m sure they will love them too and this will hopefully help them to enjoy your area quicker and stay in your property for longer. </div> <div> <br/> </div> <div> Obviously this is not an exhaustive list of things that you can do to make attracting and keeping the right kind of tenant for your property, but if you start here you can’t go too far wrong. For everything else feel free to contact us. </div> <div> <br/> </div> <div> Original: <a href="https://www.direct.property/blog/4580/5-tips-to-prepare-your-property-for-lease" target="_blank"> https://www.direct.property/blog/4580/5-tips-to-prepare-your-property-for-lease </a> </div> <div> Author: <a href="https://www.direct.property/agent/12662/Elishah%20Lusi" target="_blank"> Elishah Luci </a> </div> <div> Date: 17-Jan-2019 </div> </div> Wed, 10 Apr 2019 12:28:16 GMT https://www.integrilend.com.au/preparing-to-rent thumbnail main image https://www.integrilend.com.au/best-suburbs-melbourne <h4> <span> </span> <b> Upgraded Roads Impact Melbourne Property Prices </b> <div> <b> - An investment strategy by Rob Millar </b> </div> </h4> <div data-rss-type="text"> <div> <font color="#000000"> The end of the line suburbs or regions of Melbourne will benefit most from the Governments massive transport infrastructure program. Established cities that have their own infrastructure and such as Ballarat, Bendigo, Geelong and even suburbs such as Frankston will have the most to gain compared to the suburbs in between. The big spend will have little impact on Melbourne’s Inner City property values which are not transport dependent and as a consequence will continue to be highly desirable for this reason.  </font> </div> <div> <font color="#000000"> <br/> </font> </div> <div> <font color="#000000"> The areas that have the most to gain or make up are those suburbs that have the lowest median price ( compared to the average ), and as the program reaches completion, the median prices of those outer areas should merge with the average. To that end Frankston continues to appeal because of it’s relatively low median. </font> </div> <div> <font color="#000000"> <br/> </font> </div> <div> <font color="#000000"> Original Article: <a href="https://www.robmillar.com.au/investment-strategy-a-bridge-not-too-far-away/"> https://www.robmillar.com.au/investment-strategy-a-bridge-not-too-far-away/ </a> </font> </div> <div> <font color="#000000"> Author: <a href="https://robmillar.com.au" target="_blank"> Rob Millar </a> </font> </div> </div> Mon, 08 Apr 2019 13:14:59 GMT https://www.integrilend.com.au/best-suburbs-melbourne thumbnail main image