Archive for Uncategorized

Your Suburb’s Walk Score

Do you know about this  website that  allows you to see your Suburb’s Walk Score? 

It is a bit of fun but also helpful when you are looking into an area to move to or buy an investment property.

The US based WALK SCORE® website now allocates a score to every suburb in Australia.

A high score simply means the suburb is more convenient.

100/100 = Perfectly convenient
0/100 = Antarctica

Mortgage broker Sydney

 

 

 

 

 

 

Don’t be fooled by the name. The WALK SCORE® is about overall convenience, not just walkability.

Interestingly, Sydney came out with the best WALK SCORE® when compared to our other large Australian cities. I suspect this is because it is faster to walk that drive in Sydney : )

Mortgage Broker Sydney

 

 

 

 

Recent overseas studies indicate that properties with above-average levels of walkability command a premium over homes with average levels of walkability. Studies have also confirmed that high walkability scores can often correlate with relatively high yields and low tenancy vacancy rates. In the United States, for example, an additional one point increase in a WALK SCORE® is associated with a potential $3,000 increase in property value.

Have a try for yourself. This system is as easy as typing in your suburb and clicking GO.

http://www.walkscore.com/

Let me know what you think.

Remember if you have any questions about how to get into the property market contact me Kim Wight Mortgage Broker Sydney on 0412167551 or email Kwight@smartline.com.au

 

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

Don’t Believe The Hype.

Maybe it is just my imagination but it seems that Australia’s media has become more sensationalist over the last decade. My advice is Don’t believe the hype.

Take for example the Australian residential property market. Had you listened to many of the media’s “talking heads”, you would have jumped out of the market 10 years ago. That may not have been good advice.

Remember Dr Steve Keen in 2008? He predicted a 40% price drop for residential dwellings. The media loved him. Thankfully, someone held the Dr to account and bet against him. Having lost the bet, Dr Keen had to walk from Canberra to Mt Kosciusko. This was a rare occasion where a doomsayer actually had something to lose. Most media “experts” are never held to account.

In response to all of the negative news about our economy,  I  have decided to run a positive facts stock-take.

 Don't believe the hype.

 

The next time you are watching TV or reading a news article that is predicting a collapse in property prices, spare a quick thought back to the support our media gave Dr Keen’s predictions. Fear sells.

If you would like to chat about this you you are looking to enter the property market or maybe looking to upgrade please contact me Kim Wight Mortgage Broker Sydney at kwight@smartline.com.au 

 

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

What to Expect In The 2016 Property Market

Whilst it is a little early in the year to predict what to expect in the 2016 property market   I do have some interesting information that could shape your view.

Current residential property sale volumes are well above the doldrum years between 2004 and 2012, however, it is worth pointing out that our last boom (between 1998 and 2003) saw monthly volumes near the current 19,444 mark. Given our population has grown by almost 1,000,000 people since 2004, one could conclude that current volumes might be the new normal.

What to expect in the 2016 property market

Whilst the NSW unemployment rate remains relatively low and our interest rates continue to sit at levels near 4.00% p.a., it is difficult to see a significant decline in demand for property. As you can see from the chart below, variable interest rates are actually predicted to fall by around April this year.

Mortgage broker

In terms of Smartline’s recent experience in the NSW market, our 90 mortgage brokers, as a group, saw a 20% increase in December loan submissions compared to 2014. Many of these submissions were seeking pre-approved finance, which indicates a reasonable increase in buyer demand.

As always, should you need any advice, please give me a call, Kim Wight Mortgage Broker Sydney , I am here to help.

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

GREEK DEBT CRISIS

You are probably experiencing a level of Greek debt crisis media fatigue. Sorry to add to that wave of information. I will keep this message short.

“The Economist” magazine website has a page called the global debt clock. From this page we have extracted the Greek debt story since 2004.

http://www.economist.com/content/global_debt_clock

As you can see, the Greeks grew their debt level between 2004 and 2011 by $204 Billion USD.

This government debt equated to just over $40,000 per person. The total debt was around 1.6 times the Gross Domestic Output of the Greek economy.

The really interesting part of the table below is from 2011 onwards.

Total Greek Government debt actually reduced from $452 Billion USD to $263 Billion USD over the last 4 years. Unfortunately during this time the economy also shrunk dramatically so the ability to keep repaying the debt did not improve.

This is the crux of the Greek Problem. Once Government Debt gets too big the options are all bad. This is a salient warning for Australia.

The debt had to be repaid and reduced but this was always going to hit the Greek economy. This economic misery resulted in a change of Govt.

I will not pass any judgement on the current Greek predicament but as someone that works with debt for a living, I can say that debt needs to be treated with a great deal of respect.

Debt can be a very useful tool that can leverage you into greater levels of wealth, but it needs to be treated cautiously. Good advice is essential.

Mortgage Broker Sydney

If you want advice on your home loan debt contact me Kim Wight, Mortgage Broker Sydney, I am hear to help. 

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

Which direction will the RBA go from here?

The question on peoples lips at the moment is  –Which direction will the RBA go from here?

Our ongoing interest rate chart shows that basic variable, 3 year fixed and 5 year fixed rates have converged.

In particular, fixed interest rates are sitting at historically low levels. This has made many people think a lot more about the option of locking in an interest rate for a fixed term. This decision should not be made lightly. If you are inclined to fix, please call us to discuss the pros and cons.

interest rates

According to the ASX futures market, the outlook for variable interest rates is remarkably stable. They are speculating that the RBA will keep the cash rate at 2.50% p.a. for a further 18 months.

Reserve Bank

The Aussie dollar is an economic indicator that is worth keeping an eye on if you are wishing to understand the RBA’s cash rate decisions. If the Aussie dollar drops in value against the USD (which is happening at the moment), this theoretically gives our RBA more flexibility to lift rates. If inflation lifts we could potentially see a rate rise. Having said that, inflation remains low so the above chart reflects the general sentiment that variable interest rates should stay low.

As always, please don’t hesitate to call me Kim Wight Mortage Broker Sydney on my new number 02 8730 8900 if you would like to discuss your current situation.

NOTE: If you have a variable interest rate that begins with a 5, we should talk through your savings options.

 

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

What is “your” credit score?

Have you ever wondered what is “your credit score”. I have come across a helpful new service that will allow you to look up your credit score with VEDA (at no cost). VEDA is the biggest credit reporting company in Australia and virtually all of the banks buy information from them (to varying degrees).

Obtaining your score on this website will only take around 1 minute. https://www.getcreditscore.com.au/

Before you get started, the credit score is just that, a bottom line score. The score does not show your detailed credit history (we can organise that for you). We should also note that most lenders have their own scoring systems that only partially use VEDA information.

Each of the scoring categories below have implications for your future credit applications.  There are a wide range of initiatives that we can employ to either improve your score or take advantage of your current strength.

What is "your" credit score?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

If you want to discuss this or any finance questions please call me Kim WIght Mortgage Broker Sydney on 02 95945722. 

Posted in: Uncategorized

Leave a Comment (0) →

Where is Australian property heading?

Are you wondering where is Australian property heading? Have you ever come across someone that invested heavily in property 20, 30 or even 40 years ago?

Most of the time these long term investors are now sitting on easy street. They always make you think about the price of property in 20, 30 or 40 years time from now.

Where will prices be in 2024, 2034, 2044 or 2054?

Here is a hint. The ABS is forecasting a rapid increase in Australia’s population (see below).

Mortgage Broker Sydney

 

Property that is conveniently located to work districts, hospitals, schools, transport corridors and desirable features such as waterways will almost certainly become more sought after.

The current investment property boom is underpinned by simple arithmetic. Income from a rental property is often more than the cost of a mortgage.

With interest rates sitting below 5% p.a. and rental yields often sitting above 5% p.a., the long term approach to property investing has not been this affordable in decades. This is especially the case when you consider that Self Managed Super Funds can now borrow to buy residential property.

If you would like to discuss your investment property plans, please give me a call, Kim WIght Mortgage Broker Sydney. I  have some interesting research that could help your decision making process.

 

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

Over-capitalisation

How much should you invest to improve an Asset? I see examples of over-capitalisation every day.

Cafe owners that spend $100,000 on a shop fit-out that would need to generate 100,000 more coffee sales to break even.

Mortgage Broker Sydney

 

 

 

 

 

 

 

 

 

 

Car enthusiasts that spend $50,000 on a $10,000 (second hand) car and end up selling it for $15,000.

Mortgage Broker Sydney

 

 

 

 

 

 

Kitchen renovators that import $50,000 worth of marble from Italy for a house worth $600,000.

mortgage broker Sydney

 

 

 

 

 

 

 

 

These are all cases where someone has invested more into an asset than they would ever get if they sold that improved asset.

The following unfortunate example is a real scenario:

mortgage broker Sydney

 

 

 

 

 

 

 

Research is the key to avoiding over-capitalisation of a property. This is where I can greatly assist.

I  offer my  clients access to research tools (at no cost) that are usually only available to real estate agents, valuers and property analysts.

One tool that I  have found absolutely invaluable is:

mortgage broker sydney

 

 

 

The “professionals” version of this system is what most real estate agents use to appraise your property. I have access to every property sale amount since the early 80s (see small example below).

mortgage broker Sydney

 

 

 

 

 

 

 

 

 

 

 

 

 

This information above is just the tip of the iceberg.

Please make sure you do your research the next time you are buying, selling, renovating or building. You need this information.

If you would like a report on your own property or a property your are considering buying , please contact me Kim Wight Mortgage Broker Sydney 

 

 

Posted in: Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

SMARTLINE PERSONAL MORTGAGE ADVISERS

As many  of you know I own and operate a franchise of Smartline Personal Mortgage Advisers.

At Smartline we’ve always tried to build our business on what we do rather than what we say.

How many businesses have you seen that can genuinely live up to their advertising slogans?

Smartline’s plan has always been to grow our business by just taking better care of our clients, no clever “one liners” and no multi million dollar advertising campaigns. This can often seem like the hard path to travel but it works better in the long run.

This “client care” approach was recognised at the mortgage industry’s annual achievement night last Friday. Smartline won the award for the Best Mortgage Broking Group (Retail) in Australia.

MFAA

 

 

 

 

 

 

 

This success was made all the more powerful given we overcame three high profile brands:

 Aussie,

Mortgage Choice and

Choice Home Loans.

Although our brand is not a household name, Smartline now has over 300 of the most productive and effective mortgage brokers in the industry. Our team takes care of over 120,000 active and loyal clients that have rated our service at an average of 98/100 for the last few years.

This is a very proud moment for us, however, we are well aware that our whole business has been built on your patronage and advocacy.

 Thanks so much for your ongoing support and remember if want to experience great service when you are looking for a home loan call me Kim Wight Mortgage Broker Sydney on 95 94 5722

Posted in: Blog, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →

YOUR CREDIT FILE

credit fileThe 12th of March 2014 heralds several significant changes to the information that will be held on your credit file.

I recognise that this may seem like a very dry subject but it is very important for you to be across this information.

Until now, Australia’s privacy act has limited the credit reporting agencies to only providing negative information about your credit background. This includes credit defaults, bankruptcies and any credit applications that you have made. That limited level of information reporting is about to change in a significant way.

To see exactly what new information will be available on your credit background you can click the following link to a very comprehensive website:

http://creditsmart.org.au/what-has-changed#included

The main points of change are as follows:

1. Information about your monthly repayment conduct (ie paid on time) over the past two years can now be reported.

2. If you apply for credit, the decision by the credit provider can now be reported (declined or approved).

3. The current limit on all of your credit cards (and other credit facilities) can now be reported. This also means that if you get a limit increase, this can now be reported on your credit record.

4. The repayment term and repayment type on all of your credit facilities can now be reported.

5. A credit provider can now also provide an opinion that you have fraudulently attempted to get credit or fraudulently evaded your obligations to repay credit, or that you do not intend to comply with your repayment obligations.

6. Credit defaults can be lodged on any outstanding amounts over $150 if you are more than 60 days behind on your repayments.

For the majority of people, there should be great benefits associated with this new credit reporting system. The overall cost of credit fraud in Australia is quite high and this new system could go a long way toward reducing the cost of credit for all of us. Let’s hope credit providers pass on the savings….

It is also important to note that the 12th of March is only the point where the credit providers can legally start reporting this information. Most credit providers will take time to build the systems capabilities needed to take full advantage of their new found freedom.

If you (or your family or friends) are currently experiencing difficulties in relation to any credit facilities, please contact me Kim Wight Mortgae Broker Sydney . I  have a range of options that may be available to you.

Posted in: Bad Credit History, Blog, First Home Buyers, Latest Mortgage News, Mortgage Broker Sydney, Uncategorized

Leave a Comment (0) →
Page 1 of 3 123