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.

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.

Currency and money in soil with young plant seedlings representing sustainable development in finance, economic investment and in the mortgage industry for the future.

I have been a mortgage broker for over 10 years now and all I see are the same old products - home loans with fixed rate, variable rates and Line of Equity. As a mother of 20 year old children, I am beginning to question, how best to advise a young client. The aim is to save, earn, invest and grow in a global economy which is changing, but we don’t have products that change. #MarkBouris #Innovation #OlderAustralians #Mortgage #Homeloan

Look ahead, but don’t forget your rear-view mirror: Before venturing into an investment unknown, historical data and forecasts are essential, as input factors and indicators respectively. These provide a comprehensive picture of what you’re diving into.

Don’t go surfing into the storm: Pay extremely close attention to market anxiety levels. You must measure your own ability to react to a crash and avoid it above all.

Should we all not evolve and find a way to sustain ourselves? We can work and be productive till about 55 years of age, then our physical limitations change to a more passive life, but we still want to engage and do things with money and get pleasure out of life.

I love the fact that Mark Bouris is talking about innovation of mortgage products. Why can’t we lend to older Australians ,when we know we will have an aging population? Why not advice reverse mortgage? Why can’t we have a Whole of Life Insurance products that a young 25 year can buy to boost their super, with the knowledge that they are insured till age 99?

“We are always exploring different funding lines," he said. Reports indicate that more than $15 billion of RMBS deals have been issued since January double the amount over the same period in 2016.

“The banks have to change what they can and can’t do, and that is leaving a big gap for many different types of products,” Mr Bouris explained. “One of the things to consider is manufacturing those products ourselves, whether on our own or with somebody else. We’ve got great distribution, and our distribution channels are asking for these types of products. We should all be thinking how we can change the looming social problems with housing unaffordability and create a solution."

The world is evolving and we need to adapt to it, if we want to stay in the race. What changes would you like to see? Let's discuss your ideas on 0425 341 086. You can also read this on LinkedIn and view others' comments.

Do you carry good debt or bad debt

Everyone carries debt these days, be it a car loan, credit card debt or a mortgage. Good debt typically provides a greater return on investment than the interest being charged and tends to fit well within your bigger financial picture. #Mortgage #HomeLoan #GoodDebt #BadDebt

Home Mortgage is meant to be a good debt, because it allows you to leverage a home of greater worth than you can hope to save for and buy.

Similarly, a mortgage could be considered good debt because it benefits your family while a car loan may be necessary to provide transportation to and from work. A mortgage is considered a long term asset. A car loan must be carefully analysed to balance your needs and wants. You might want a sports car but realistically a family SUV might be more practical and economical.

You could also argue that a student loan is good debt because higher education is an investment in your earning power.

But there is a catch. When payments on good debt become unmanageable, they start to feel like bad debt — and it could rapidly become an ugly situation for you. For instance, student loan payments on a degree that didn’t boost your income, or mortgage or car payments that eat up too much of your take home salary, can rapidly lead you to rely on credit or loans to cover day-to-day expenses. Credit card debt tend to spiral out of control because of the higher interest rates.

The bottom line: Good debt only stays that way if it is part of a well-thought-out financial plan. Otherwise, you may be turning something that’s meant to be good into something that ends up being bad for your budget.

Call Madhu on 0425 341 086 to discuss your ideas and views.

Sydney & Melbourne to follow London Markets ?

At the end of 2016, we reported that the formerly invincible London home market had suffered its biggest crack in years, when home prices plunged the most in six years according to Rightmove. #London #RealEstate #HomeMarket #Mortgage

Asking prices in London dropped 4.3% in December with inner London down 6%. Meanwhile, the most exclusive neighborhoods, like Kensington and Chelsea, recorded even sharper declines at nearly 10% as home buyers migrated to cheaper areas of the city.

While it was unclear what the catalyst was: whether post-Brexit nerves, China’s crackdown on capital outflows, the ongoing depressed commodity market, or reduced migrations by wealthy Russian and Arab oligarchs, what is obvious is that the slump has continued. According to the Royal Institution of Chartered Surveyors, its price balance for the city fell to the lowest since February 2009 last month, plunging to minus 49, which means that a greater percentage of agents reported drops in March.

Closer to home, the Sydney and Melbourne real estate market seem to be at a knife's edge with experts claiming that a property bubble burst is on the horizon.

Call Madhu on 0425 341 086, for expert opinion and advice on the Australian market and the best mortgage suited to your needs.

Median home prices in Sydney($785k) are nearly double those in NSW at $405k.#Sydney #homeowner
Here are the details regarding the deposit required, rent, LVR and more since 2001.
Call Madhu on 0425 341 086 or email her at loans@financeandmortgage.com.au to understand where you stand and how and where to buy your next home.

The Commonwealth Bank of Australia (CBA) has sent out a note giving ‘inactive’ brokers two weeks’ notice for the revocation of their accreditation.

Brokers were deemed inactive if they had not written a CBA home loan in the past year or if they had only written a single mortgage. The letter provided recipients with 14 days’ notice, starting from the date the letter was sent, in which the bank would revoke the broker’s authority to act. By freezing loan applications, new loans cannot be written by brokers about to lose their accreditation so that customer would not face issues.