Planning the key to managing the mortgage with a new Family

Many couples juggle mortgage repayments with bringing up a baby on a single income, but a little planning goes a long way in helping new parents ease the financial burden. This includes considering how to utilise paid maternity leave, annual and long service leave, and one-off payments – such as the baby bonus – to minimise any stress associated with managing finances once the baby arrives. Ideally, the time to start planning is when you decide to become, or find out that you are going to be, a parent.

While there are a number of options on offer by lending institutions, it is important to seek advice to find solutions for your unique circumstances. Not all of the options on offer by lenders will work for you – and they do vary considerably from bank to bank. A prime example is payment honeymoons – or holidays – which are available to some borrowers, depending on the loan type. For those who do have the option, generally speaking, access is dependent upon the amount of prepaid funds you have accrued. For example, if you’ve been paying extra into your loan for a while and accrued $20,000 in your redraw facility, it is these accrued funds that will fund your payment holiday. Once these funds have been exhausted, the payment honeymoon is over.

Switching to interest-only repayments could be another option. While some borrowers may be able to switch to interest-only repayments, it’s important to remember that the loan is still expected to be paid out in (usually) 30 years. So if you are not paying any principal for a while, this will have an impact on your minimum repayments when you revert back to principal and interest. This will be an important factor in your decision to use this tool.Another essential consideration is whether to fix or not. Factors that will effect your decision include the length of time you’ll be on one income, the income amount, and whether or not you have ongoing additional expenses, such as a car loan or medical costs.

Taking time to weigh up the pros and cons, making the best use of one-off payments and considering your unique circumstances are all important in developing a plan that will ease the financial burden and, in turn, help you to enjoy your time with your new baby.

Testimonial for Team Godwin

My wife & I placed our beautiful waterfront Mooloolaba home on the market recently, we have had many dealings with agents in the past, we hand selected Gary Thomas @ Henzells because we wanted a low pressure type sale process without all the 'who ha'. Well thats exactly what we got, he sold our home in a short period of time & the sale went with relative ease. Gary has a lay back style about him but achieving maximum efficiency 'no fluff'. We also purchased our next home through Gary, he is well connected & networks extremely well. We highly recommend Gary Thomas @ Henzells Mooloolaba for buying & selling real estate on the Sunshine Coast.

Lisa & Ernie Underwood, 13/02/2010

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Renovate to Sell. Cheap kitchen make over.

When selling your home, often the deal breaker or maker can be the kitchen and the bathroom. So how do you make these areas shine? Let’s take a look at some easy and cheap ways to spruce up your kitchen.

Clean Up and Clean Out!
Clear all the bench tops and get rid of all the clutter. Find another area to store your mail, school notes, sunglasses and handbags! These all make the kitchen area look small and cluttered.
Clean out the cupboards. Remove excess plastic containers, pots and pans, plastic bags and cutlery. This will give the illusion of space and give the kitchen a clear working area that is clean and fresh.

Take a look at your Cabinets.
It can be as easy as replacing the handles to update the kitchen cabinets or a splash of paint. If you are looking to get a more contemporary look you may like to add a few glass cabinet doors.

Splash backs can make all the difference.
When looking at updating a kitchen, the splash back is usually at the top of most lists. Look at interesting tiles, plain glass with or without wall paper behind it or a stainless steel splash back can make all the difference.

Windows and window dressings.
If you have windows in the kitchen, give them a really good clean. Often this is the place where grease and grime can collect. Have a look at the window dressings. You may simply need to replace your old curtains with sleek blinds to give the kitchen a quick and easy lift.

Benchtops.
Updating or changing the benchtop can make all the difference to the kitchen. Following are some of the ways to update yours.
Granite – very popular at the moment. Granite is tough enough to resist scratching and staining and has a very high tolerance to heat.
Laminate – Available in a variety of different patterns and colours and can be matched to any kitchen.
Composites -  quartz and other engineered stone. It looks great and provides a continuous surface that resists stains and scratches.
Ceramic Tiles – can be a cheaper option. Make sure you use a grout that has anti microbial additive. This will help to reduce mould.

Your personal touch.
Replace old tea towels with new ones. Have a think about the little extras that will give the kitchen that special touch – an interested book stand for a cook book, glazed black pot, or matching cacti. These small personal touches can make all the difference. 

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Tri Time.

Soon to be me!

I am training for my first triathlon in 13 years. Back in March 1997, was the last time I entered into a triathlon. I remember this date fondly as it was not only my birthday but also the day that my husband proposed to me.

I must say that I definitely don’t think – actually I know - that I did not put enough effort into my training schedule, particularly the bike riding portion of the training. Now at the time I did have a perfectly good reason for this, only 5 years prior to this (whilst training for another triathlon) I was hit by a car on 2 separate occasions. Now they weren’t particularly bad accidents but enough to give me a pretty big scare. So, I put off the bike training until the very last minute. BIG MISTAKE! I could hardly run after I got of the bike as my legs had filled up with lactic acid and as I was not used to this feeling, I was in a great deal of discomfort and had a terrible run leg.

However this time I have put in more training on the bike and I am almost comfortable in saying that I will be able to run the last leg in its entirety. I have been working on my transition from the bike to the run and can now ride and run the distance, only just, but I still have a couple of weeks of training so I am hoping that it will get a little easier.

So what Triathlon will I be participating in? It is the TriathlonPink, and all female triathlon that is run to raise money and awareness for breast cancer. I will be entering the Sunshine Coast race at Kawana and possibly the Gold Coast race. If you are interested in entering you can find all the details on the TriathlonPink web page.

I will keep you updated on my progress, the good the bad and the ugly!
Roxanne - P/A to Team Godwin
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Buying Your First Home

Congratulations on making the decision to buy your first home. This is a big step for all first home buyers to take. So now that you have made the decision, what are some tips that will make sure I go about it the correct way?

- What is your budget? Talking to lenders or a Mortgage broker is a definite must to find out what your budget is. They will take a look at your finances and calculate what your maximum borrowing capacity is and let you know what repayments you will be making on your loan.
- Have a Deposit. You will need at a minimum 5% of the purchase price PLUS costs associated with buying the property. The larger the deposit the better.
– Pre- approved loan or wait till you find a property. You can do either, however it is a lot less stressful to get the loan pre approved. You can then go shopping for a home knowing that the finance is already in place and the only step you need to make once you have found a home is to have the property valued. If you decide to shop around for a home first you will need to move quickly once an offer on the property has been excepted so it would be a good idea to know what broker or lender you will be using. Generally, you will only have approximately 2 weeks to get your finance approved.
- Shop around! Have a really good look at a number of properties. As this is your first home you may not to be sure of what you are really looking for until you look at a number of homes. Think about the layout of the home, what upkeep the home needs, size of the home (do you really need 4 bedrooms???), and any immediate maintenance the property requires.
– Do not overcommit. Remember you will still want to go out for dinner and enjoy your life as well as live in your new home.
- Shop around! Have a really good look at a number of properties. As this is your first home you may not to be sure of what you are really looking for until you look at a number of homes. Think about the layout of the home, what upkeep the home needs, size of the home (do you really need 4 bedrooms???), and any immediate maintenance the property requires.
- Do not pay too much for the property. Don’t let your emotions take over your decision making when in price negotiations.
– Have a building and pest inspection done on the home. Check if the home has any restrictive covenants, council zoning and all extensions and updates on the property have building approval.  
– You will need a solicitor or conveyancer. Ask around to get a referral and also get a couple of quotes.  
– Organise building insurance for your property as soon as your offer is accepted.

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Getting the money to buy when your Self Employed

With a little time and some extra documentation, it’s not difficult to get a home loan if you’re self-employed. If time is at a premium and you don’t enjoy extra paperwork, then a mortgage broker can help to smooth your way.

Taxable income
It is an important issue for the self-employed to consider is taxable income.

Taxable income declared by self-employed people is often reduced, as accountants look for as many tax deductions as they can achieve, this means the income lenders usually assess for a home loan, doesn’t often take into account true cash flow.

Two years’ documentationThe majority of lenders will expect you to have been trading for at least two years and will perceive your income to be the wages you draw, plus your share of any profit being made by the company. Standard evidence requirements can be two years of financials for personal tax and two years for company tax, plus interim returns for the business.

Most lenders will average those accounts, which is usually to the detriment of the self-employed person, you can also run into difficulty when you are half way into a new financial year and the tax returns for the previous year have not yet been completed.

Get help from the startGetting professional help will make the process easier. Use an experienced mortgage broker who knows which lenders apply the rules. For example, which lenders will use the latest years figures if they’re better than the year before, instead of averaging; and which lender will use one years trading instead of two.

You also have the option of a low documentation loan. If you do not have all your paper work together but have a 20% deposit you may want to consider this option. Generally, you will need to show that you have been in business for atleast 12 months. The lender will want to see that you have had a registered ABN for this period. You will need to declare what your income is, but you won't need to produce the paper work that you would normally repuire. Many lenders will 'load' the interest rate that will be applied to the loan, but there are lenders that do not do this. So it is important to speak to your broker to find the best loan for you.

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Testimonial for Team Godwin

Hi Luke

You have been really great to work with. Words cannot express how much I have appreciated your communication & quick respnses. You have made what I thought might be a difficult & stressful sale (trying to do it from another country), a stress free professional transaction. Thanks again.

Judy Brackenrig, 18/06/2010

Looking for the best Property Finance Deal.

Most property investors would be familiar with the concept that you make your profit when you buy. That is, buying wisely from the outset is the greatest determinant of how much profit you will ultimately make from your investment property.

No matter how long you may hold the property for or how creative you may be in adding value to the property, if you have overpaid for the property from the outset, it will erode how much profit you realise on your investment. Hence the reason astute investors spend a considerable amount of time doing their homework and then negotiating hard to ensure they purchase their property at the best possible price in order to maximise returns.

Similarly, securing a good deal on the loan you use to finance your property purchase can have a significant impact on the long-term success of your investment.

So how do you find the right finance deal? Well, in the same way that it is very unlikely you’d purchase the first house you viewed from the first real estate agent you spoke with, chances are you’ll need to look around. But just as with the properties themselves, some of the best home loan deals are not always obvious to the uninitiated. For example, in this current environment, there may be greater flexibility for customers who already do business with a lender. At a time when lenders are generally only lending a maximum of 90% of the value of a property, some will lend up to 95% for those who already have an existing facility with them.

But which lenders offer this? Some lenders require you to have another credit product, like a credit card , while others want to see you have a transaction account. And how active does the facility have to be? In an environment where bank lending policies are regularly changing – and tightening – smart advice on the best finance deals on offer (particularly those that are not always well publicised or explained) can have a huge impact on your investment plans.

Exclusive listing or Open listing?

Whats the difference?

Exclusive – Only 1 agency is listed to sell the property
Open – Multiple agents listed to sell the property

Now to look at each in detail :-

Open listing have multiple agents selling your property. You may get access to more buyers than with an exclusive listing however the agent that sells the property is the ONLY agent that gets paid for the listing. This may mean that your property will sell faster but not necessarily for the best price. The agents then work less for you and more for the buyer because if they don’t sell the home ‘now’ they won’t get paid in the long term for the work that they have put into the sale.

If you would like to develop a strong partnership with the Agent marketing your property an Exclusive listing is the type of listing you need. With an exclusive listing your agent works solely for you. As every property, market and client is different, the agent and your self can work closely to develop a strong marketing strategy. For yourself, you only need to be talking to one Agent/Agency rather than numerous agents/agencies and therefore give and take feedback quickly and effectively. Your agent will know their buyers and can direct qualified candidates to you property.

So what is best for you? Depends on whether you are looking for a quick sale with the possibility of a lower price OR a well thought out marketing campaign that will reap the financial rewards with a better sale price.

Booked in to look at open homes all weekend? There are some do’s and don’ts to be aware off.

Take of your shoes.
It’s polite to take your shoes off when entering the property. Its not appropriate to bring dirt into a home that has had a great deal of time and effort spent on the cleaning to make the home look its best for you. Also it is not a good idea to take food or beverages into the home when you are making an inspection.

Respect the open times.
Always arrive early and leave within the time allocated for the home to be opened up. As most open homes are done on Saturday it is a very busy time for us and we have taken the time to plan other open homes for the day. If you are unable to make the open time we are always happy to show you around the property with a private inspection.

Owner’s privacy.
It’s not polite to be touching the ornaments or prying at personal photos. You are there to be looking at the home. Also take care if you would like to look into the cupboards and robes. If you are genuinely interested in the home and would like to get a closer look at the dimensions, it is always best to do this at a private inspection.

Parking
Always park on the road and not in the driveway or directly in front of the home. People like to get a feel from off the home and they will need to have an open view of the property from the front and having cars parked all over the drive way does not help.

Leave your details
At the minimum, leave your name on the open home register. This allows the owner of the property to gauge the amount of interest in the home. If possible leave a contact email or phone number so we can follow up with you to get your thoughts on the property.

Opinions
Keep your voice down! We all have an opinion but not everyone will have the same as yours, whether it be good or bad! If you have some thing to share about the property, let us know in private or when we give a follow up call to find out what you think.


Enjoy the viewing!
Hopefully you will enjoy the viewings and we will make the time that you take to come to the homes as relaxed as we can. We know as agents that buying and selling homes can be a very stressful time.