To buy or to rent - That is the Question.

This is a question that people always ask. It is similar to the egg or chicken - What came first? #buy #rent #homeowner #homeloan #firsthomebuyer#newhome

Renting might seem more appealing with soaring housing prices in Sydney and Melbourne but don't expect it to be cheaper than buying. 
While investors have boosted the supply of rental accommodation and reduced the rate of growth of rents, rents are still growing in the two major cities, Housing Industry Association senior economist, Shane Garrett said.
Real Estate Institute of NSW president Malcolm Gunning said in many cases, "mortgage repayments are cheaper than rental".
"Take for example a one-bedroom in inner city Sydney which costs about $700,000. At about a 4 per cent fixed mortgage rate, you pay about $580 a week," he said. But rents in these areas are about $650 to $700.

Its a good idea to review and refinance your home loan

A mortgage is most likely the largest investment you will make, so you should regularly assess your home loan and see if refinancing can provide you with additional benefits. #refinance #homeloan #Creditcarddebt #mortgage#interestrate #broker #investment
Refinancing is when you switch your mortgage to another lender. There can be multiple benefits to refinancing.
1. To cash out home equity
Refinancing your home loan can be a great way to access home equity so that you can invest in another property. This is called ‘gearing’. Alternatively, you can use your equity to renovate, for home improvements or any other worthwhile purpose.
2. To consolidate debt
Rather than carrying personal loans or credit card debts at high rates, you should consider consolidating them into your home loan so you can pay off your debt at the lower rate. This enables you to pay the debt off faster and potentially save thousands of dollars in interest payments providing you maintain you repayments at current levels.
Madhu and her team can help refinance your home. Discuss on 0425 341 086.

THE SAME HOUSE OFTEN IS VALUED DIFFERENTLY

Ever wondered why a home can be listed for one price, valued at another, lender-valued at yet another price and then sold yet another? #HomeBuyer#FirstHomeBuyer #Valuation #HomeLoan#ElephantStory This scenario is like the tale of the 6 blind men and the elephant. Each touched a part of the elephant and decides the whole big picture without any input from the others. The bank value If your home is mortgaged then your lender will definitely value it. This gives the lender security against the borrowed amount if you cannot pay your mortgage and the lender must sell the property to recoup its debt. Hence a bank valuation is usually conservative, sometimes 10%-20% less than the current selling prices of comparable homes. The selling agent’s price appraisal Real estate agents are commonly asked to assess the market value of a property. This will often help a vendor decide who to engage to sell their home. An agent will inspect the home and research comparable sales in the local suburb or town before producing written feedback with a sale price estimation such as “between $X and $X” or “from $X”. This price guide is used when advertising the house. The sale price The price the successful buyer is prepared to pay, and the vendor is willing to accept, on the day the contract is signed is the property’s legally binding sale price. Hot markets, high demand in certain areas and a big turnout on auction day can all have an effect on the final sale price for a property. The local council’s valuation The annual local municipal rates bill shows the notice a Capital Improved Value (CIV), site value, net annual value (NAV) and/or gross rental value (GRV). These figures are calculated using comparable sales data and the bi-annual figures from the State Valuer-General’s offices. Councils and water and fire authorities, use these figures to work out how much homeowners owe them for using their infrastructure and services. The homeowners’ price Every property owner will have a ‘dream price’ in their minds when they come to sell. It includes the memories, convenience factor and any add-ons made to the property. In the end the market will usually decide a property’s value by what a buyer is willing to pay for it at auction or through private sale. Are you looking for a valuation on your property? Contact me on 0425 341 086 or https://www.facebook.com/Madhu.Chaudhuri.FMS/ for a free property valuation.

I love Westmead

Want to live only in Sydney? Here is a highly sought after deal.
#firsthome #Investment #Westmead #Parramatta #Sydney #NewHome#HomeOwner
Located at 93 Bridge Road,Westmead the new site occupies 8,664 square metres of prime R4 zoning land and benefits from a 92.795 metre frontage along Bridge Road to the western elevation and 256.6 metres of combined local internal road frontages along the Northern and Southern boundaries of the property.

The site is located in a gateway position close to the Westmead health district to the North and situated approximately 2.2kms from the Parramatta CBD. The EOI closing 16:00 PM, Thursday 5th April 2018.
The existing improvements on the site comprise 31 single storey two bedroom villas. 

Contact Madhu on 0425 341 086 or at loans@financeandmortgage.com.au to learn about buying off the plan.

How to make the most of a small renovation?

Budget Renovation

Purchasing a home is a big expense and unless you have built a new home, the expense does not end at simply buying the home. The following are the top 3 most popular and value adding renovations you can do for your home. They just happen to also add comfort and style as well. #renovation #refinance #homeowner #Firsthomebuyer #newhome #homeloan #mortgage
1) Kitchen
The kitchen is where the family and guests often spends the most amount of time. Unfortunately, it is also one of the most expensive rooms in the home to renovate. As kitchen cabinetry trends go in and out of style within a decade it can often be the one area of your home that can look dated quickly. An updated paint job will bring warmth to this heart of the house.

2) Wooden Deck or Alfresco
When home buyers look at houses, a deck is one of those items that almost everyone can picture doing certain activities on, cementing your home’s resale value. While a house costs about $85 per square foot, the deck is only $35-$50 per square foot, means that you get a lot of value out of this added usable space. For example, making an outdoor living room with a grilling station is a great way to enjoy your home inside and out.

3) Garage Door
The garage door is often neglected. It represents about 20% of the front of your home visually if it faces the front. A new automatic electric door can also provide that luxurious comfort of simply driving into the garage during hot summer or cold winters, making its value and luxury unbeatable.

Contact Madhu on 0425 341 086 to capitalise on your home's equity to fund your renovations or comment on Facebook.

1. Home loan repayments to increase 
The financial markets expect the RBAto start putting up rates in 2018. This means repayments could also increase, typically by $50 for every 25 b.p. rise on a $400,000 loan. With any rate rise, borrowers are likely to turn to brokers to ensure they are getting the best deal possible. #HomeLoan #Mortgage

2. Property prices to cool
Banking regulators want to see a slowdown in house price growth, and that’s what we expect in 2018. Limits on investor and interest-only loan growth may remain for the foreseeable future, which may continue to dampen investor activity and cool property prices. We’re already seeing this intervention starting to take effect. Brokers will continue to play a critical role in explaining the ever-evolving regulatory changes affecting property investors and advising them of the best lending options available.

3. More borrowers may switch loan type
The big switch is on in the mortgage market. In the past six months, the number of interest-only loans held by the banks have dropped by around $36bn, according to APRA. The trend of switching to principal and interest loans may continue in 2018, and is an important transformation that brokers can continue to assist their clients with. #Loanswitch #refinance

4. First home buyers to make a comeback
With investors taking a step back, first home buyers may find more opportunities in 2018. They will continue to benefit from competitive interest rates, new concessions (if eligible) and ample apartment stock, although checks should always be made to ensure quality buys. With more first home buyer activity, brokers may expect to spend more time with their first-timer clients, coaching them through the journey as they get their foot in the door. #firsthomebuyer #firsthome #newhome

5. Upgraders may continue to renovate
We’ve seen a substantial increase in renovation loan applications in 2017, a trend that we’re likely to see well into 2018 as home owners choose to renovate over moving. Upgraders are avoiding exorbitant moving costs such as stamp duty. We’re seeing some more top-ups as people take advantage of lower interest rates and leverage the extra equity in their property in order to finance renovations. #Renovation #InterestRate

6. Owner occupiers to win from competitive lending rates 
With limits on investor and interest-only growth, banks are competing over a smaller piece of the lending pie, and are offering some great deals for owner occupiers. Brokers may see more consumers take action, stimulated by heightened advertising activity among banks. #ownerOccupied #HomeOwner

Here are our expert tips for a brighter New Year

1) Max out your Super contributions and take advantage of the annual limits #Planning #MoneyMatters #HomeLoan#20172018

2) Dump do-nothing credit cards in favor of New Year specials like 0% interest rates, travel points and cash back opportunities. #CreditCard #NewYear #2018

3) Be prepared for whatever: Set aside one month’s salary for emergencies.

4) Reward yourself: Use the credit card points you’re racking up to buy something just for you.

5) Partner up: An experienced Financial Planner can do wonders for your finances. Making good decisions all year long is easier with the right planner.

Contact Madhu on 0425 341 086 or loans@financeandmortgage.com.au to plan your finances in the coming new year.

Sydney - Population and Housing availability issues

Renovation paint card

Purchasing a home is a big expense and responsibility. When you take possession or live in a home for a few years, you tend to want to make changes. The following are the top 5 most popular and value adding renovations you can do for your home.

#homeowner #HomeBuyer#Renovation #Construction #HomeLoan #Mortgage #DIY

Entry Door
Your front door is the first impression many visitors will have of you and your home. Getting a door that suits your taste allows you to differentiate yourself from your neighbors. A steel entry door provides the best value, security and energy efficiency or a fresh coat of bold paint will make a statement. It also makes an easy DIY renovation project.

Looking for a low-maintenance home?

Container home

As a home owner one of your main considerations will be initial and ongoing maintainance costs. A new trend to consider is a container home. #HomeBuyer #FirstHome #Homeconstruction #GrannyFlat #HomeLoan #Containerhome #innovation

These homes are made from old shipping containers which are then modified to fit the size requirements of the home owners. They can be used as building blocks for homes, granny flats, shops or offices. The containers are like giant Lego blocks that can be built into anything at all.

They are cost effective, quick to build and tolerate harsh weather well (imagine transporting goods on cargo ships and being handled by cranes and trucks for years). These homes are eye catching and talking points and you sure to be the star.

So, consider this new trend while looking into your next home be it an investment or one you are planning to live in. Call Madhu on 0425 341 086 to explore the best finance option for you. Read more on our Facebook Page or on LinkedIn.