Go Where The Growth Is-Brisbane Australia

If you want to see the fastest growing area in Australia, just go to Brisbane. There are only two other cities in Australia that are larger than this capital of Queensland. There are many different aspects of this city that attract both visitors and new residents. There is a certain way of living here that is made even more enjoyable by the way that the city itself.

There are great contradictions between the old and new here that is very attractive. The busy city has tall shiny skyscrapers right near to old and beautiful sandstone buildings that are rich in historical significance. There is the attraction of the river that runs through the city and all of the trees that flourish here too. There is an incredible number of parks as well as bustling offices.

Tourists particularly enjoy the lovely weather in Brisbane. It makes enjoying the city and the surrounding area so much nicer. Once in Brisbane you are right close to the Gold Coast and Tropical North Queensland. They are popular areas that are close enough to enjoy and investigate when visiting Brisbane.

There are quite a few distinctly different cultures that have been rotted in Brisbane for quite some time. This mix of people makes it an even more interesting place to visit. There are incredible and varied foods to be sampled here as well as diverse artistic traditions to explore. It is a natural part of the Aussie culture to be relaxed and welcoming of visitors. Because of that it is an even nicer place to visit. Tourists can enjoy shopping through the city and hanging out in one of the many luscious parks all day long.

There is never a bad time of year to visit Brisbane and this is another factor that makes it one of the best holiday destinations. The most popular months for tourists visiting Brisbane are the months of June, July, and August. Although, this is winter time in Brisbane it is a pleasant and wonderful time in the Queensland. Easter and Christmas time are also relatively hectic in Brisbane. For those who are looking to see the city during it's down time it is best to choose the months of May or October. During these months the tourist flow is down and the weather is still nice which allows for a slightly slower paced holiday. No matter when you visit you won't be disappointed.



Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Student Visa Home Loan

Currently in 2011 there are approximately 450,000 international students in Australia working their way through their respective studies. Most of these are on a student visa and some are are interested in purchasing a property in Australia as a place to live while they are here studying instead of paying rent or board. Buying a property in Australia may also be part of the longer term goal of Australian permanent residency and ultimately obtaining Australian Citizenship.  

This article outlines some general information on when international students in Australia on student visas can obtain a home loan and the requirements of the same.

1) Can I Get a Home Loan in Australia on a Student Visa?

Most banks, credit unions and building societies will not lend mortgage finance to International students studying in Australia as they are deemed too risky. The concern of the banks is essentially that you will leave the country without paying the mortgage. This leaves the bank with the task to sell the property to get their money back, and no lender likes doing this.

There are however a few lenders in Australia that will lend home loan finance to non residents on student visas providing strict criteria is met as below.

2) How Much Deposit Will I Need for a Student Visa Home Loan?

Non-Resident students can borrow up to 80% of the purchase price thereby requiring a 20% deposit plus costs. For example, if you were purchasing a $400,000 property you would require a 20% deposit being $80,000 plus stamp duty and legals. Stamp duty and legals is generally around 3-5% of the purchase price however it varies significantly depending on the State you are living in. In some States first home buyers do not pay stamp duty at all up to a certain level and students on student visas can often take advantage of these stamp duty discounts.

3) What Types of Student Visas will the Australian Home Loan Lenders Accept?

Most types of student visas are acceptable including;

Vocational Education and Training Sector Visa Subclass 572

Higher Education Sector Visa Subclass 573 Visa

Masters and Doctorate Sector Visa Subclass 574 

Skilled Overseas Student Visa Subclasses 880, 881 and 882

4) What are the Requirements to Get Home Loan Approval?

To be approved for a home loan on a student visa the following are what the banks will require to consider your application;

1) 1 year in current employment (exceptions can be made but generally 1 year is required),

2) Clean credit history free from defaults etc (never normally an issue for temporary residents given its very difficult to obtain credit without permanent resident (‘PR’),

3) Income sufficient to afford the repayments (borrowing capacity is evident),

4) 20% deposit plus costs as advised above – gifted funds from mum and dad for example is fine even if the funds are being gifted from an overseas bank account providing we can see it in an Australian bank account prior to approval.

 5) Is FIRB Required?

As a general rule, student visa holders will require Foreign Investment Review Board (‘FIRB’) approval when purchasing property in Australia. There are a few exceptions such as if you are purchasing with an Australian citizen or permanent resident but generally for most students an FIRB application will be required.

FIRB approval is a formality and nothing to be too concerned about providing you are purchasing the property to live in or are purchasing a brand new property. 

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Finding the right tenant for your investment property

It’s said that the tenant you choose for your investment property is just as important as the property you purchase.

Why? Well, a good tenant will theoretically provide an ongoing income stream for the potential long-term, look after your property and live in the property for the foreseeable future. So, if you don’t have a good tenant, you could be risking your current and future income stream.
As a landlord, you really want a tenant that will last. The longer they stay in your property, the longer you go without losing money and time replacing them. This means that you’ll need to treat your tenant well and deal promptly with issues that arise. And, you’ll need to carefully consider whether to increase the rent, only doing so when the market justifies it.
The search to find the ‘right’ tenant for most people is an exercise in placing listings and screening potential tenants and could almost be considered ‘rental dating’.

How do you attract a good tenant to your investment property?

Attracting tenants that will treat your property as if it were their own is the goal. To capture these tenants, make sure that you property is clean, well presented and desirable. Ensure your property looks as good as if you were selling it.
Then, if you’re tackling this on your own, you’ll need to:

• Create a web listing for your property. Be creative, but realistic when describing the features of the property.
• Use quality photographs to capture the features of inside and outside the property.
• Advertise your property with a reputable web site.

Once prospective tenants express an interest in your property, take the time to perform background checks and screening. A tenant application should have three references from an employer, a property manager and a personal referee. It’s also wise to ask a former employer about a tenant’s reliability at work, their financial status and employment history.


Warning signs that you should steer clear of a particular prospective tenant:

• A prospective tenant that finds faults and minor defects during an inspection, despite your property being in good condition, will result in you arranging repairs and spending unnecessary money to ensure that they are happy throughout their tenancy.
• Rent should always be paid in full and on time. If a prospective client is late with rent or still owing money to their previous landlord, they are likely to do the same to you and be a financial liability.
• If a prospective tenant doesn’t provide the supporting documents that you request, then it’s safer to simply select another tenant.

If you think that you’ll need some assistance in finding the right tenant for your investment property, you could also consider leasing your investment property to an organisation like Defence Housing Australia (DHA), which leases out investment properties to defence personnel. Such an organisation pays your rent monthly in advance into your bank account, even if your property isn’t occupied and generally offers long term leases, of up to six years. It is also arranges an annual rent review and non-structural repairs and maintenance work to your property during the tenancy, at a cost.
Alternatively, you could enlist the help of a good property manager. They can be invaluable when screening tenants and deciding upon the appropriate level of rent to charge. Be sure to ask them how many rental properties they have on their books, their total all-inclusive fees, the number of properties they have in arrears and their strategies for when tenants refuse to pay rent.
By either employing the services of a property manager or an organisation like DHA, your responsibilities are significantly reduced when compared to conventional residential property investments.


One last important thing to consider when securing the right tenant for your property is to consider purchasing landlord insurance. This type of insurance may give you peace of mind that your property is safeguarded against rent default, associated legal costs and the potential loss of rent if the property is uninhabitable due to damage. So, your rental income may be protected, even if something unexpected happens.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Aussie Home Loans’ John Symond says first home buyers are stuffed as lenders demand bigger deposits

Lenders are raising the bar for first time buyers, requiring even bigger upfront deposits.
Trapped in a cycle of rising house prices, rising rents and falling returns on savings, the founder of Aussie Home Loans, John Symonds has declared would-be first time buyers are “stuffed”.

“Certainly the great Aussie dream is becoming a distant memory, which is unfortunate because it goes right to the fabric of our society.”
“I see surveys showing affordability is the best in decades, but I scratch my head about that because the dollar amounts are so huge. And interest rates will eventually come up a bit.”
Before the global financial crisis, borrowers could access loans with no deposit and up to as much as 105 per cent of the property value.
But the days of 100 per cent loans are over, according to brokers, and lenders are becoming ever more strict about how much they will lend.

Buyers are stuffed ... Chairman of Aussie Home Loans John Symond. Source: Supplied

“We’ve found that some lenders have tightened their lending criteria on the size of deposits needed to apply for a home loan,” a spokeswoman for finder.com.au, Michelle Hutchison, said.
The number of homeloans with a maximum loan to value (LVR) ratio of 90 per cent — ie. requiring a 10 per cent or bigger deposit — had increased from 11 per cent to 16 per cent over the past year, Ms Hutchison said.
During that time, ANZ, Mortgage House and Bendigo Bank reduced their maximum LVR allowed on some loans from 95 per cent to 90 per cent.
Westpac and CUA also reduced the maximum LVR on some of their loans from 97 per cent to 95 per cent.
“This is bad news for first home buyers with a small deposit, as it means they will need a bigger deposit or reduce their loan size budget if they want to get on the property ladder,” Ms Hutchison said.
Mortgage brokers agree lenders are becoming more strict, despite competition hotting up among banks for new loans.
“Yes, we have seen a move away from higher LVR lending by some lenders,” the general manager of sales and operations at Australia’s largest network of brokers, AFG, Mark Hewitt, said.

Seeing changes in lending ... AFG Sales and Operations Manager Mark Hewitt. Source: Supplied

Offering advice for buyers ... Finder.com.au money expert Michelle Hutchison. Source: Supplied

First time buyers made up just 9.8 per cent of new loans written by brokers in the AFG network, down from 13.6 per cent last May.
“There are other factors that contribute to this — such as the withdrawal of government grants and the increasing proportion of investors — but lender policy is playing a part,” Mr Hewitt said.
A spokeswoman for rival broker network Mortgage Choice, Jessica Darnbrough, said first time buyers were also at a disadvantage as discounts on new loans were being targeted at borrowers at the high end.
“First home buyers with smaller loans are still able to access good discounts, depending on their credit history. Though, as a general rule of thumb, the bigger the deposit, the lower the borrower’s LVR and the bigger their mortgage, the better the discount they may receive.”

First home buyers are at a disadvantage ... Mortgage Choice spokeswoman Jessica Darnbrough. Source: Supplied

Homebuyers borrowing at least $1 million with a 20 per cent deposit and good credit history could expect to score a discount of up to 1.2 percentage points off the advertised standard variable rate.
But those borrowing less, say $250,000, may only be able to get a 0.7 percentage point discount, even with a deposit of 20 per cent or more.
Mr Symond said higher deposit requirements hurt first time buyers the most.
“It’s harder because they can’t go out and borrow half a million dollars on a shoestring. Unless they can get family help, they’re stuffed.”

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

No Deposit Home Loans

No deposit home loans are not exactly that; but they do allow you to borrow around 95% of the purchase price of your dream home.
A no deposit home can be the fast track to home ownership if you can find a lender who still offers this type of loan.
In the glory days of pre-GFC, when anyone and everyone could virtually borrow as much money as they liked, no deposit home loans were readily available. But with the credit crunch came a tightening of lenders’ purse strings that have only been slightly loosened since.

How No Deposit home loans work

This type of loan is often sought after by first home buyers with minimal or no savings and investment property buyers who want maximum negative gearing benefits.
Your lender will allow you to borrow up to 95% or even 97% of the purchase price of your dream home, but to cover the lender’s risk, you will have to pay lenders mortgage insurance (LMI), which can be costly. For example: On a property worth $316,000 LMI will be around $8,349. And you need to be very clear on the fact LMI does not cover you in the event of default – it covers your financial institution.
You may also have to repay your home loan at a higher interest rate than if you saved a larger deposit for a standard or standard variable loan. And you will have to prove that you have a reliable income, and strong employment history.
Many lenders will offer a no deposit loan if your parents will act as a guarantor. This will also save you thousands of dollars on LMI as your parents simply provide your lender with a limited guarantee supported by a registered mortgage over their property.
Your parents are not liable for the full debt, only an agreed, guaranteed amount and they are also not responsible for your scheduled monthly payments.
Use iSelect home loan comparison website to find out if a no deposit loan is right for you.

Advantages:

The big winner here is of course that you can get into your own home sooner without wasting more money in rent, or living with your parents or flatmates.
No deposit home loans still come with the same features as other loan options such as redraw facilities and the ability to make additional repayments.

No Deposit Home Loan Disadvantages:

The lending standards are very stringent and this is not an easy type of loan to get. Your financial history will be thoroughly scrutinised so you need to make sure you’re in a position to meet all the requirements.
If you are self-employed or not on a high income, you may find it hard to get approval, and you may also be restricted as to which postcodes you can buy in but this will vary from lender to lender.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

What are construction home loans?

What is a Construction Home Loan?
Home renovations in Australia have taken off over the past decade. With house prices continuing to increase the idea of wither building a new home or renovating an existing home to suit your needs can be very appealing. The monetary requirements of a major renovation or constructing a new home can be quite different from purchasing property. To meet the needs of this area of the home loan and mortgage market many lenders have introduced what is known as a construction loan or sometimes a home loan with a constructuon facility. This can be very helpful to budding home renovators and home builders.

How Does a Construction Home Loan Work?
Construction loans are designed so that you are only required to pay a set minimum amount when each stage of building or renovation is completed. In many circumstances a construction loan will assist you to buy land, build a residential dwelling on purchased land or finalise purchasing the land and conduct any construction or renovation work necessary.

These loans are only temporary and work when a variable loan is drawn down to pay the builder in stages. Example:

• Slab down and complete
• Frame up complete
• External brick work complete
• Lock up stage
• Practical competition

By allocating small amounts of money over the construction period to the contractor this ensures the builder isn't being paid for work that has not yet been finished. These measures are designed to protect the borrower from any financial loss during the construction period. Loan repayments for a construction loan are interest only payable on the amount of the loan drawn down. Once the construction is complete the loan will revert to a permanent mortgage (principal and interest).

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

How much deposit does a homebuyer need?

In the modern mortgage market, is it still possible for buyers to get 95% LVR loans ­(or even higher), or are those days long behind us?

 

It almost sounds like an urban legend today, but it was only a few short years ago that Australian investors and home buyers could access 100% loans with ease – and in some cases, loans as high as 105% were relatively available.

 

 

Today, the home loan market is much more conservative. In the wake of the GFC banks and lenders have not only tightened up their lending criteria, but they’ve also restricted the loan to value ration that they’re willing to extend to borrowers. Calculate your LVR with Your Mortgage Calcualtor.

 

So is it possible to get a high LVR loan these days if you don’t have much of a deposit? The simple answer is, it depends.

 

The Big Four banks are generally willing to finance home purchases of up to 95%, provided you have a very strong employment history and savings history and evidence of genuine savings. The loan amount will also strongly influence the lender’s decision.

 

Non-bank lenders such as RAMS are now offering up to 97% of the property value, inclusive of 2% lenders mortgage insurance (LMI) capitalisation. This means the borrower can get a 95% loan and then add the cost of the LMI to the loan.

 

For instance, on a home purchase of $400,000, you could access a 95% loan of $380,000, meaning you’ll need to provide a cash deposit of $20,000. However, you can add the cost of LMI of to the loan amount (up to $8,000), which brings the total loan up to $388,000 or 97%. 

 

Bankwest has also come to the party by putting aside half a billion dollars for their new 3% deposit home loan products, to be used exclusively by first homebuyers in WA. Prospective first time buyers will be able to borrow up to 97% of the value of the property, provided they satisfy the bank’s special offer lending criteria.

 

“Our research showed it took about four to four-and-a-half years to save for a deposit under a traditional 80% LVR,” Bankwest managing director Jon Sutton says. “Under this product, at 97%, that brings that down to about six months, so it does help West Australians get into their house a lot quicker.”

 

Sutton says the bank’s strict lending criteria include a minimum annual income threshold of $80,000 for the borrower (or at least one person in a borrowing couple) with a loan amount capped at $500,000. The product itself is two years interest only and 40 basis point off the standard variable mortgage rate.

 

Ultimately, it doesn’t matter whether you’re looking to buy in WA or Western Sydney for investment purposes or for your own home: if you’re in the market for a low-deposit loan, there are certain things you can do to boost your chances of approval. Homeloanexperts.com.au offers the following advice:

 

Clear credit history

This means that your credit file has no blemishes whatsoever and that you have paid all of your bills such as rent, credit cards, personal loans and other debts on time every time for the last six months.

 

Stable employment

In most cases you must have been in your current job for 6 to 12 months.

 

Strong income

Lenders are more conservative when assessing your ability to repay a 95% loan, so your serviceability ratio must be outstanding.

 

Good asset position

Lenders want to see that you have a good asset position relative to your age and income.

 

Genuine savings

You will generally need to prove that you have saved 5% of the purchase price.

 

Minimal debts

Applicants with many credit cards and personal loans may struggle to be approved. As a rough guide, people who have more than 7% of the purchase price in unsecured debts such as personal loans and credit cards are often not approved.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Loan application checklist

Applying for a home loan is a long and complex process, involving everything from credit and reference checks to verification of employment and income.
To ensure that you have the best chance of getting your loan approved, we’ve compiled a checklist of some of the information a lender may require when assessing your mortgage application. Remember that requirements vary between financiers, so confirm the exact documentation you need directly with your lender or mortgage broker:

Information
- Full employment history
- Current and previous addresses
- Details of your current assets – car, motorbike, boat, collectibles etc
- Your income and outgoings
Employment documentation
- Current records of your salary
- Latest tax return/notice of assessment
- If self-employed, three years’ worth of tax returns
- A letter from your employer stating the tenure of your employment
Other documentation
- ID – 100 points, including passport etc
- Copies of recent credit card statements, confirming your credit limits
- Completed application for First Home Owner Grant
- Front page of the sales contract
- Six months’ worth of bank statements, to confirm genuine savings pattern
- Statutory declaration stating that funds gifted for the deposit do not need to be repaid (if applicable)
- Council rates notice for any properties you own, such as investment properties
- If purchasing an investment property, confirmation of rental income for the property (real estate agency letter)
Top tip: If you plan to reduce your credit card limit to improve your borrowing power, make sure you request the reduction with your card provider at least a week prior to applying for the loan. As you need to provide evidence of the decrease to the lender, this allows time for the card provider to send you written notice of your new credit limit.
Costs of buying
First homebuyers are often shocked at the number of expenses involved in buying a property – from legals and bank fees to government charges, the costs add up.
As a general rule, you should budget for around 10% of the purchase price to be spent on acquisition expenses. These costs vary, but the following checklist covers most of the common expenses:

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Sydney’s Housing Bubble Seen Surviving Tepid Loan Limits

Australian regulators are flashing warnings. Banks are vowing to curb lending. And that may not be enough to damp runaway housing prices.
At the urging of the financial services watchdog, the nation’s biggest mortgage lenders, including National Australia Bank Ltd., plan to trim the growth in loans to investors who have been on a home-buying frenzy. Regulators may have to impose stricter measures like those in New Zealand to cool Sydney’s housing market, said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd.
“New Zealand’s approach has been lot more direct and tougher, whereas here it’s about having a chat with the banks and expecting changes,” Oliver said.
The Australian Prudential Regulation Authority in December asked lenders to limit the expansion of investor mortgages to 10 percent a year, warning that those breaching that level will face higher capital ratios. Such a slight reduction from the 10.4 percent growth in March, the most in seven years, may not restrain housing prices that have skyrocketed 40 percent in Sydney in three years, according to CoreLogic Inc.

Investor Frenzy

“It’s modest and I wouldn’t expect it to have implications,” said Ben Jarman, a Sydney-based senior economist at JPMorgan Chase & Co. “If they push investor credit lower instead of reinforcing the current rate, then that would be a different story.”
Lending to investors is near a record high. The proportion of home lending to speculators rose to 40.8 percent in March, just shy of the 40.9 percent record in December, according to government statistics.
“The level of risk in banks’ mortgage portfolios has risen over the past couple of years,” Reserve Bank of Australia Deputy Governor Philip Lowe said at a conference in Sydney on Wednesday. “When risk moves up, both financial institutions and households need to respond to that.”

RBA Dilemma

The surge in lending adds to the RBA dilemma. While it’s keeping interest rates down to stoke growth in a sluggish economy, policy makers don’t want to inflame the housing market. The central bank’s key lending rate is at a record low, and the average benchmark variable mortgage rates are at a five-decade low.
“The RBA is trying to tread a middle ground,” Jarman said. “They have been seeing positive signs in home building, which is helping economic growth a bit.”
National Australia and Westpac Banking Corp. in the past month said they expected growth in lending to landlords to decline in the September quarter. Australia & New Zealand Banking Group Ltd. and National Australia said they were doing away with interest-rate discounts on investor home loans.

‘Monitoring Closely’

APRA has agreed on plans with the banks to slow the pace of lending and will be “monitoring closely to see that they kick into effect,” Chairman Wayne Byres said on May 13.
Australia has been a laggard in the region in tackling surging home prices that have eroded affordability and helped make its citizens among the most indebted in the world. Households carry a record debt of 153.8 percent of income while wage growth languishes.
Hong Kong, Singapore and most recently New Zealand have introduced measures to deter housing speculators. New Zealand this month said it will require investors to provide a 30 percent down payment to get a mortgage on Auckland property, and will more rigorously enforce taxation of capital gains on investment properties and ensure non-residents are included in the tax net.

Holding Capital

Australian regulators should require lenders to hold more capital against investor mortgages, cut discounts on rates and raise down payments for investment properties, AMP’s Oliver said. These tools should target Sydney because house prices haven’t surged in some cities and lower rates are needed for other parts of the economy, he said.
Lenders have been reducing the risk weightings they assign to their mortgage books, lowering the amount of capital they need to set aside. A government review of the financial system in December recommended a 25 percent to 30 percent floor for the mortgage risk weight compared with the 18 percent average held by the four lenders.
“If APRA is right, it should mean house price gains in Sydney should start to moderate but the question is have they done enough?” Oliver said. “There is a lot riding on APRA now.”


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Home loans fall in Australia month on month

Home loans to owner occupiers in Australia fell 7.3% in January but those approved to investors increased by 1.6%, according to the latest data from the Australian Bureau of Statistics.
The number of loans to owner occupiers for the construction and purchase of new homes declined by 5.3% and the number of loans to owner occupiers buying established homes, excluding refinancing, fell by 7.9%.
‘Lending figures indicate that the investor market performed a little stronger. Lending to investors building or constructing new homes, however, was slightly weaker during the month but remained markedly stronger than this time a year ago,’ said Housing Industry Association economist, Geordan Murray.

He pointed out that these results follow the Australian Prudential Regulatory Authority’s December letter to lending institutions outlining their intention to increase the level of supervisory oversight of mortgage lending.
The letter detailed some specific areas of concern noting high LVR loans, fast growth in lending to investors, and mortgage affordability in a (future) higher interest rate environment.
‘It is too early to determine whether APRA’s communication has had an impact in January. It will be interesting to observe the lending figures over the next few months to see how lenders respond,’ explained Murray.
‘It is important that the new home building sector is not pushed back into a credit squeeze whereby a lack of readily available finance becomes an industry wide problem,’ he added.
A breakdown of the figures show that on an annual basis the total number of owner occupier loans for new housing in January 2015 increased only in Tasmania which saw a 67.3% year on year rise.
In New South Wales the number of loans fell by 3%, in Queensland by 6.9T, in the Australian Capital Territory by 9.9%, in Western Australia by 12.3%, in Victoria by 12.4%, in the Northern Territory by 17.6% and in South Australia by 23.5%.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Loans to Australia's housing investors surge by $3.7bn

The figures add weight to the comment by the Reserve Bank last week that housing credit has become ‘unbalanced’

The value of loans to housing investors has surged at twice the rate of those to homeowners in August, lifting by 0.8%, or $3.7bn, to $417.1bn.
The figures add weight to the comment by the Reserve Bank of Australia in its financial stability review last week that housing credit has become “unbalanced”.
And they will encourage calls for the RBA to use “macroprudential” tools – rules and regulations – rather than just interest rates to rein in lending and prevent a dangerous boom/bust cycle in the housing market.
The overall amount that Australians owe on mortgages has notched up its fastest annual growth for three and half years. And the rise in investor loan value in the six months to August, 9.9% on an annualised basis, was the fastest since 2007, before the global crisis bit into banks’ ability to lend.
Housing debt rose by $7.7bn or 0.6%, between July and August. That lifted annual growth from 6.5% to 6.7%, its fastest rise since early 2011. Loans to homebuyers rose 0.4%, or $3.7bn, to $918.8bn.
The figures from the RBA on Tuesday don’t include cross-border lending, such as loans made by the offshore branches of Australian banks to buy properties in Australia.
Other measures of credit in the RBA’s figures were more subdued. Credit to businesses, aside from residential property loans, was unchanged in August, with annual growth of 3.2% barely beating consumer prices.
And other lending to households, which includes loans to buy shares as well as traditional consumer spending, was up only 0.2%, with annual growth at 1.1%.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Cooling home loan demand widens scope for Australia rate cut

Demand for home loans in Australia seems to be coming off the boil just in time to allay policymakers' concerns about a speculative spiral in house prices, so widening scope for a cut in interest rates next month.
Talk of a housing "bubble" has been rife in the media in recent months and was cited as one reason the Reserve Bank of Australia (RBA) skipped a chance to ease further at its April policy meeting this week.
Yet rising prices were far from a national phenomenon, with the heat concentrated very much in Sydney, where home prices climbed 2.6 percent in the last month alone, and are up 13.5 percent over the year, according property consultant RP Data.

That was well ahead of the second largest city, Melbourne, which managed annual growth of only 6.2 percent. In Brisbane, Adelaide and Perth prices rose between 1 and 3 percent.
Indeed, annual price growth nationally has slowed to 7.7 percent, from last year's peak of 11.5 percent,
Likewise, the speculative lending that most troubled regulators was very Sydney-centric. Loans for property investment in New South Wales had risen almost 150 percent over the past three years to account for near half the value of all mortgage approvals in the state.
The national trend was not nearly as strong and now seems to be softening as desired.
Australian Bureau of Statistics figures out on Friday showed loans for investment dropped 3.4 percent in February. It was the second month of falls and left the annual growth rate at the slowest since late 2012.
That could reassure the RBA that steps already undertaken by regulators will curb the worst of the speculation.
The country's main banking watchdog, the Australian Prudential Regulation Authority (APRA), has since December been breathing down the neck of any lender that was growing its mortgage book by more than 10 percent per year.
Institutions deemed insufficiently prudent faced everstricter controls, and ultimately an increase in the capital they needed to set aside to cover home loans.
APRA can tighten capital requirements for individual banks without having to make it public, which makes it easier to use and thus a more effective deterrent.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Forget the RBA – get your own rate cut!

Each month (except January) the Reserve Bank of Australia (RBA) meets to discuss our official cash rate and decide whether any adjustment is required in order to stimulate (or reign in) the economy. Whenever a rate movement is announced, CANSTAR sees a doubling in the number of people looking specifically to  refinance a home loan.

What does a rate change mean for your finances?

Whether you celebrating or curse the RBA when rates are lowered depends on whether you’re a borrower or a saver. For current borrowers, low interest rates are terrific and many would hope for further cuts. For savers, low interest rates are a downright curse and many would have breath a sigh of relief when rates are kept on hold.
Of course, the above emotions are reversed when interest rates rise!

For borrowers

Irrespective of rate cuts or not, those who currently have a mortgage are in clover right now, with home loan interest rates super-low. Currently on our database of loans, minimum, maximum and average home loan rates are as follows:

	Standard Variable	Package Variable	1 Year Fixed	3 Year Fixed	5 Year Fixed
Average	4.91%	4.44%	4.48%	4.54%	4.77%
Min	3.99%	3.98%	3.79%	3.99%	4.28%
Max	5.99%	5.10%	5.59%	5.59%	5.89%

Rates as at 7 July 2015, products on Canstar database.
As you can see from the above table, borrowers shouldn’t be complacent. Despite our low rate environment, there is still a two percent difference between the highest and lowest variable home loan rate on Canstar’s database. Even a half a percent reduction on a $300,000, 25 year home loan equates to almost $90 per month, or one thousand dollars per year. That’s easy cash in hand.
While the cheapest home loan isn’t always the right choice for your situation, the good news for borrowers is that there are a number of financial institutions offering a variable rate under four percent, so there’s plenty of choice out there. Currently on our database, there are ten variable rate home loan products available under four percent. There are also one, two and three year fixed rates available under four percent.

For savers

For those who are cashed-up as opposed to being in debt, our low official cash rate is not such great news. And of course, there is still economic chatter about rates being lowered throughout this year, so if you have cash to invest, think carefully about your options! You can compare current term deposit interest rates here.
While it may be little comfort, at least our cash rate could be worse!


Whether you’re a borrower or saver, it’s important to shop around for the best rate possible. Even with our currently-low overall interest rates, there’s still a significant difference between the highest and lowest home loan rates and term deposit rates in the market. Don’t settle for average!

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

How do you own your own home?

Australians aspire to own their own home. How do you do it? This was a question recently posed on my News Corp Gen Y column and while it might sound trite, the honest answer is: with great difficulty.

In June, we crunched the numbers on home loan affordability. Even at our historically-low home loan rates, an average-priced house takes 22% of after-tax income for a Victorian couple who are both on average salaries. In Queensland it takes 20% of the combined after-tax income and in NSW and Western Australia it’s 24% and 23% respectively. Heaven forbid if one of those two people should lose their job, want to take time out for study or take any unpaid maternity or paternity leave.

So if you do want to own your own place in a good location then the best advice I can suggest is to study hard at university, choose a career that you love and work really, really hard to excel at it. Because in the absence of any government appetite to limit the unfair influence of investor power in the housing market then you truly will need, as our Federal Treasurer baldly stated earlier this year, a good job. A really good job. As well as an ability to save.

Home loans: Going guarantor

Another option to get into the market is to potentially either borrow money from your parents or ask them if they would be willing to go guarantor. It’s not a request that should be made or granted lightly. If your parents go guarantor on your loan it means that they will be liable for the loan if repayments are not made. To be a guarantor it also means that your parents need to be able to demonstrate the capacity to repay.


Once you have managed to buy a home, of course, you still don’t really own it: the bank does. And by the way – make sure you compare home loans before you sign up as they can vary significantly in cost! Anyway – once you have your home loan it makes sense to get it paid off as quickly as possible. As an example, a $300,000 home loan over 30 years at an interest rate of six percent will cost around $647,000 by the time you pay it off. If you increase your repayments by, say, $300 per month though, that same loan would be paid off in 21 years at a total cost of $527,000. The same home, owned nine years sooner, and costing $120,000 less. That’s a good savings strategy!

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Home loan customers are optimising low interest rates to cut their mortgage debts faster

AUSTRALIANS are milking record-low interest rates to smash down their home loan debts and pay off their mortgages in full.
The long stretch of low interest rates since the global financial crisis is expected to continue well into 2015 and new results show Australians are maximising the good deals on offer.

Citibank’s annual 2014 financial survey found 25 per cent of Australians are mortgage-free and own their home outright compared to 2007 when it was just 16 per cent.
However the number of Australians paying off a home loan has crept up from 38 per cent in 2007 to 41 per cent in 2014.

The bank’s head of banking solutions and wealth management, Dierdre Wroth, said Australians had remained focused since the GFC on their stashing cash and culling debt.
“They either accumulate cash or they start to deleverage their debt,’’ she said.
“We’ve seen different aspects of people managing their debt, paying down the mortgage has become easier and rates are lower.

“They are very happy to put those funds into their mortgages rather than just put money into a bank account.”
The Reserve Bank of Australia has kept the cash rate on hold at 2.5 per cent since August 2013 and banks are continuing to offer record-low interest rates below five per cent.
RBA figures show Australians are now more than two years’ ahead on their mortgage repayments.
The research also showed the number of people renting has dropped, falling from 36 per cent in 2007 to 24 per cent.
HSBC chief economist Paul Bloxham said the ageing population had also contributed to an increasing number of older Australians paying off their loans in full.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Older Australians into their eighties approved for home loans

ELDERLY Australians are getting approved for home loans which could leave them paying off their mortgage until they are 113.
Banks have admitted signing up customers in their 70s and 80s — one customer at 83 — for home loans despite some lenders toughening their age restrictions.

No age limit ... Australians in their 70s and 80s are getting approved for home loans in Australia but lenders say they have strict serviceability rules to make sure the borrower can repay the loan. Picture: Supplied
Data from financial comparison website RateCity shows the number of lenders with no maximum age restriction has fallen from 88 per cent last year to 76 per cent this year.

According to the site’s database lenders including the Bank of Sydney, Bank of Queensland, Firstmac and loans.com.au have introduced age caps on some of their loans in the past 12 months ranging between 65 and 75.
Previously they had no age restrictions.
Some of the reasons why people want a home loan loan later in life are because it can be cheaper than paying rent or for an investment.
But RateCity spokesman Peter Arnold said taking out a loan in your twilight years can be incredibly risky.
“You could die before you’ve paid off your mortgage especially if you are signing up at the age of 83,’’ he said.
The Australian Bankers’ Association’s chief executive officer Steven Munchenberg said responsibility lending restrictions apply before approving loans to customers to ensure they can meet repayments.
“When you go for a loan serviceability is a critical issue,’’ he said.
“Why there isn’t a hard and fast rule ...(about age) is because we have to make sure we aren’t discriminating against people.”

Firstmac managing director Kim Cannon said they changed the age restrictions of applicants from no age limit to 67 across their FirstMac and loans.com.au products to fall in line with the nation’s retirement age.
“If a loan applicant is approaching the deemed retirement age of 67 we would ask them to demonstrate their ability to meet the repayments or clear the debt once their working income stops,’’ she said.
“Otherwise we would be likely to decline the loan.’’
Currently on the average $300,000 30-year loan the average standard variable rate is 5.04 per cent and the monthly repayments are $1618.
On the same mortgage with a three-year fixed rate three-year fixed rate is 4.57 per cent and the monthly repayments are $1533.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE