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rob kelly
Rob Kelly - Select a Broker
Rob Kelly - Select a Broker


Been thinking about the impact of first home buyers being squeezed out of the property market.

The RBA has played their part in maintaining low interests rates, but the bank and non bank lenders have not passed on all the cuts and continu...e to have bulging pockets on the back of record profits.

Investors are going gang busters and buying up most of the lower end property market where first home buyers usually make their start. Then they rent them out and high rates of rent knowing that young people have trouble saving the 10% required to cover 5% plus costs in most states and territories. A vicious circle for first home buyers.

There are some incentives for anyone that wants to buy land and build, which is good for the building industry but I am so sure all the young ones are better off with large mortgages that come with this type of purchase.

What happened to starting small and building up. A jump in rates could see a number of these loans go into mortgage stress.

Over the last couple of years there has been a huge jump in the amount of first home buyers relying on parents, siblings and even grandparents to help with deposits in forms of gifts and or providing equity in their properties to cover the lack of savings.

Good idea if loans are paid, not so good if they are not.

My view is that first home owners grants and incentives have proven to be a winner for people making a start, and gives all first home buyers the chance to enter the market at whatever level they feel comfortable with.

Idea to finish. Why don't the banks offer a matching savings deposit for first home buyers staring out. Say 15k to match 15k saved. At entry level of around 300k this could be a win win.

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Mortgage brokers are growing their market share on the back of poor service from banks and non bank lenders..

Whether you are buying your first home, investment property or doing a development project you need to deal with people that are going to provide the service you desire. Not poor advice, not unreturned phone calls.

Many new customers use a mortgage broker service like Selectabroker after getting messed around by inexperinced and no care attitude bankers.

A quality mortgage broker will handle your loan application from start to finish. Dealing with lenders to ensure the application runs smooothly and also ensure you get the best possible loan for your needs. And not pay anything for that service.

To find out more about how a mortgage broker service works. Visit link below.
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Development loan finance is highly sort after but at times, very difficult to secure.

Let me share some facts around how the lenders are treating these loans since the GFC and also the introduction of the responsible lending conduct under the national consumer credit protection act 2009.

Due to the number of failed development projects, most main stream lenders (including the major banks) have taken the view that property developers borrowing money for land and construction purposes must meet the guidelines of the new act.

One if the borrowers position is that they can afford the interest payments during land loan drawn down, and progress payment interest and also afford to meet the loan committments at the end from their personal incomes then no pre sales would be required, as long as they have a sizable cash injection into the project. Generally 30% of the fixed costs. so a 3 mil project requires 1 mil cash in.

If the borrower is relying on the sale of the developed property, as an exit strategy to clear the debt, then the properties would need to be pre sold and under contract with deposits paid.

The number or % of pre sales varies on a case by case basis. could be 100% or 10% depending on the project itself and how much capital is in the transaction.

In recent times, private lenders have filled the void created by reduced interest of the bank with development loans, but the interest rates aand the set up sets  genarally higher, eating into the margins at times.

The developer needs to present a strong case, and have detailed proposal for both the banks and private lenders to consider.

Using a broker to get the best result fro your development finance package is strongly recommended.

Visist site below for further information.
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Want to know everthing there is to know about getting a home loan on a rural property. Read on.

Firstly if you want to want put a small deposit down, say 5 to 10% then you need to find a property with a land size of maximum 50 hectres or 125 acres.

The rural property needs to have a livable home on it and have power connected or at least set up with solar powe.

Town water is a bonus if it has it but tank water or a small water right from a river, channel or dam will be sufficent.

The property itself needs to be a lifestyle property, or a hobby farm rather than an income producing farm.

Rural properties such as vinyards, orchards sugar plantations etc would be considered as farm loans, and would attract a higher deposit, higher interest rates and also shorter loan terms like 15 years.

If your sole income is from primary production, then this can also affect your chances of borrowing on a rural propoerty for a home loan product.

Any properties over the 50 hectres will require a minimum of 20% deposit. As a rule of thumb, the bigger the land size the bigger the deposit.

To read more visit link below.
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Construction loans are assessed against the expected improved value of your property after renovations. If your renovations are expected to add value you may be able to borrow more than simply using an equity access loan. They generally operate as an interest-only facility during the construction period before switching to normal home loan conditions. 

Another important feature is that they generally allow funds to be drawn down to pay for the construction as each stage is completed. This progressive drawdown is available for projects that are completed by licensed builders or owner builders.

Different conditions generally apply depending on whether you use licensed builders or are an owner builder. Usually licensed builder customers are able to borrow to a higher lending value ratio (LVR) of the improved value of the property. Documentation requirements will also vary.
 visit here for more info
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i have a financial services business, that helps people find a mortgage or finance for the type of loan, and the area they live. i have spent six years creating quality content, and building a broker panel to accomodate the enquiries i recieve. customers luv the site, and my conversion are high.  enter penguin 2. not so much my site has been penalised, but my positions have been afected by the presentation of directory based websites like yellow pages and true local. often with multiple listings. and its not just my indusrty. next time you search for a product or service by location, take a look how these directories(also know as phone books) are dominating the SERPS.  the lnk profile and content of these sites, are far removed from the recomended good practice google bangs on about. i only hope that they realise this and rank them accordingly.

 rob kelly director and owner of
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We have seen 68% of people who refinance their mortgage see their payments drop! 

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Check out this great infographic from odetocapitalism and investopedia
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