Amid growing expectations of rate cuts in 2025, sticking with a variable home loan rate can seem like a no-brainer. But not so fast. Locking in your home loan rate can also have upsides, including the potential for a lower rate right now.
Home loans come in all shapes and sizes. A common thread is that you’ll likely be given the choice of a variable or fixed interest rate.
It’s an important decision, as fixed rates can be very different from variable rates – and right now, some lender’s fixed rates are lower than their variable rates.
Let’s take a closer look at both options.
With a variable-rate loan, the rate you pay can move up or down in line with market interest rates.
If the Reserve Bank of Australia (RBA) raises the official cash rate, for example, your loan rate will almost certainly rise, which in turn increases your repayments.
Conversely, if the cash rate falls, your variable rate should also drop, which would result in lower monthly repayments.
The upshot is that you need to be prepared for your home loan interest rate (and repayments) to rise or fall during the course of your mortgage.
In exchange for this uncertainty, variable rate loans tend to offer more flexibility and features.
These can include a redraw facility, linked offset accounts, and being able to make fee-free extra repayments, all of which can make your home loan easier to live with and help you pay off the balance sooner.
When you fix your home loan rate, the interest rate stays the same regardless of changes to market rates.
This means you know exactly what your repayments will be throughout the term of the fixed rate period (usually one to five years), which can help make household budgeting easier.
If market rates rise, you’re in front because your fixed rate won’t be affected.
The downside is that if interest rates fall, you won’t get the benefit of lower repayments.
The good news is that today’s fixed-rate home loans are generally more flexible than in the past.
Some allow extra repayments (often up to an annual limit) plus redraw. Others even provide offset accounts.
Even so, one issue to be aware of is ‘break’ fees.
These can apply if you bail out of a fixed-rate loan before the fixed term ends – something that may happen if you want to refinance to a lower interest rate loan sooner than you originally planned.
Break fees can be complex. But if interest rates have dropped since you fixed, you could be up for significant costs, potentially running into tens of thousands of dollars, which could wipe out any savings from refinancing.
This highlights the need to talk to us before locking in a fixed rate so you can make an informed choice.
This is where things get interesting.
Right now, fixed rates can actually be lower than variable rates, depending on the lender.
This is likely because some banks believe that the RBA may cut the official cash rate (perhaps several times) over the next couple of years, so they’re pricing this into their fixed rate options to make them more enticing.
Macquarie Bank, for instance, has a 2-year fixed rate of 5.69%, well below its 6.14% variable rate.
Whether the RBA cuts the cash rate, how many times it cuts it, and how soon all determine whether or not you come out ahead by fixing now.
There is one possible way to enjoy the certainty of a fixed rate and the flexibility of a variable rate: a split rate loan.
This lets you divide your loan between a fixed rate and a variable rate. For example, 40% of your mortgage could be accruing interest at a fixed rate and the remaining 60% could be charged at a variable rate.
You get bragging rights about the lower fixed rate you’re paying, plus the features of a variable rate loan.
It’s a bit like hedging your bets, with some additional benefits.
Still not sure which option might suit you?
Contact us today to find out more. We don’t have a crystal ball, but we can sit down and work out what’s important to you – and then which of the above options aligns with those needs.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
There’s much more to property in Australia than just houses or units. And if you’re in the market for a home or investment property, it helps to know your townhouses from terrace homes so that you can choose a place that’s suited to your goals and needs.
Australians are blessed with choice when it comes to buying a family home.
Nationally, Australia has 10.9 million private dwellings.
The sheer scale of properties points to a wide variety of housing types to suit different budgets and lifestyles.
So, it can pay to cast your net wide.
With this in mind, let’s take a look at the main types of housing you can choose from.
Houses dominate the property scene in Australia, accounting for a whopping 70% of the nation’s private residences.
But not all houses are the same.
‘Detached’ houses are freestanding, or standalone, residences.
That’s quite different from semi-detached houses, which share a common wall with a neighbouring home – something often seen in rows of terrace houses, typically dating from the 19th and 20th century.
The pros of houses: houses have historically shown a higher rate of capital growth than other types of residential property.
The cons of houses: houses often come with a price premium over apartments.
As a guide, the median price for a house nationally is $879,680, compared to $669,700 for apartments.
Apartment living has gained a big following in recent years, with one in six (16%) Australians calling an apartment ‘home’.
And they continue to grow in popularity.
Realestate.com.au says searches for apartments have been trending upwards since mid-2020, accounting for almost 40% of all ‘buy’ searches in late 2024.
The pros of apartments: part of the appeal of apartments is affordability. However, they can also offer the advantage of low-maintenance living (think no lawns to mow each weekend).
The cons of apartments: one thing to watch out for is strata levies. These cover the cost of building maintenance and repairs, and newer developments with more facilities can come with higher strata fees.
Not keen on an apartment, but looking for something more affordable than a house?
The solution could be a townhouse or villa.
Townhouses make up 13% of dwellings across Australia. They typically have two storeys while a villa is usually a single-storey home.
The pros of townhouses: the small garden or courtyard space associated with townhouses and villas can offer residents more private space.
The cons of townhouses: both townhouses and villas are part of a strata scheme, which makes it worth keeping an eye on strata fees.
Duplexes can tick a bunch of boxes. They’re a modern version of a semi-detached house, often with two adjoining homes constructed on a larger block, connected by a single wall.
While duplexes are less common than houses or apartments, they have the potential to let you buy a home for almost half the price of a regular house.
The pros of duplexes: a duplex can combine the privacy of a house with the affordability and low maintenance of a townhouse or villa.
The cons of duplexes: according to REA Group, owners of both duplex homes must agree to a building insurance policy that covers both sides of a duplex. This is something to look into before buying.
The type of property that’s right for you is a very personal decision.
What you are able to buy can be shaped by both personal preference and your borrowing power. And more often than not, trade-offs and compromises occur.
Call us today to know how much you can afford to borrow. It could shape your choice of home.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
How are your New Year’s resolutions coming along? If you’re like most people, they’re likely related to health, fitness or abstinence. But why not consider a financial one too? Here are three resolutions worth considering for 2025.
There’s no denying that 2024 was a tough year for many mortgage holders – in no small part due to the hope of rate cuts dangling just out of reach, coupled with inflation.
But by kicking off the year with one or two of the ideas below, you could be in a better position to tackle 2025 head-on, come what may.
Do you know the interest rate on your home loan?
Don’t stress if you don’t, about 40% mortgage holders can’t recall it.
Not knowing the rate is usually a good sign that it’s time to check if your mortgage is still well-suited to your needs.
An analysis by RateCity shows the average borrower who has not refinanced their home loan in the past 12 months has paid almost $6,000 more interest during that period as a result.
Rest assured we’ll help make the process painless. Simply get the ball rolling by giving us a call today.
When was the last time you had a thorough look at your spending account?
It’s good to get into the habit of conducting regular expense audits.
After all, many of us have been guilty of subscribing to one too many streaming services that we rarely use – let alone takeaway coffees, takeaway meals and other impulse purchases.
Little tweaks here and there can add up.
For example, a daily $5 takeaway coffee habit costs you $1825 per year. Switching to a DIY French press brew can cost just $350-$450 per year.
A home loan doesn’t just have to be a debt.
It can also be a valuable tool that lets you work through a personal bucket list by putting home equity to work.
And you could be starting 2025 with more equity than you realise.
Back in January 2023, the median home value across Australia’s state capitals was $770,374, according to CoreLogic.
Fast forward to now, and the median value has increased to $897,580.
That means that over the past two years the average city homeowner in Australia has gained almost $130,000 more equity in their property, which they could possibly leverage for other investments.
In fact, that $130,000 rise in equity is the equivalent of a 20% deposit for a $600,000-$650000 investment property.
Alternatively, you could use that equity for home renovations to improve your primary place of residence.
Call us today to get a clearer picture of your home’s potential equity – and how you could use it to tick off your wish list in the year ahead.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
With the holiday season upon us, we’d like to express our heartfelt thanks to all our amazing clients for your trust and support throughout 2024.
With the hope of rate cuts always dangling just out of reach, coupled with inflation, 2024 was tougher than many families anticipated.
Please know that we’re always here if you ever want to discuss your mortgage – including ways we could potentially help you reduce your monthly repayments.
Looking ahead, 2025 offers plenty of promise (maybe we’ll start getting those highly anticipated RBA rate cuts!), and we’re ready to walk alongside you to tackle your goals and aspirations – whether they be buying your first home, second home, a holiday home or an investment property.
But first, we hope you take a well-deserved break to enjoy the magic of the festive season.
Whether it’s spending quality time with loved ones or simply unwinding with some holiday cheer, this is your moment to relax and recharge.
The next 12 months may bring more surprises, but one thing remains constant – our commitment to being here for you every step of the way.
So, throw on that festive jumper (the uglier, the better!), savour the holiday treats, and celebrate all you’ve accomplished this year.
May your festive season be joyful, your happiness be abundant, and your challenges small. We can’t wait to help you continue your property journey in 2025!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
If you haven’t looked into refinancing since the start of higher interest rates, it might be time to ask yourself ‘why not?’ New research shows it could be time to try again – especially if you want to start 2025 off on the right foot.
A new report from Canstar shows more than one in five borrowers were able to negotiate a better interest rate from their lender this past year.
One in ten successfully switched to a new lender in the last 12 months.
Even so, fewer home loans have been refinanced this year compared to 2023.
With rates looking like they might stay higher for longer, it could be worth taking a fresh look at refinancing over the summer break.
According to Canstar, around 5% of borrowers tried to refinance in 2024 but didn’t have enough home equity.
A further 5% didn’t meet the bank’s requirements.
It’s a situation dubbed ‘mortgage prison’ – where you’re stuck paying more on your home loan because you don’t qualify for a lower rate home loan.
As Canstar notes, a lot of people think they’re in mortgage prison.
But if you haven’t tested the lock recently, now could be the time to try.
Even if you’ve had a go at refinancing in the past, it’s worth talking to us to see if you could qualify for a new loan today.
On the home equity front, home prices increased nationally by 5.5% in 2024. So you could have more equity than you realise.
Also, if you have a solid record of regular repayments, some lenders may be willing to stress-test refinancers using a loan serviceability buffer as low as 1% (below the standard 3%).
The important thing is that you speak with us to get to know your options.
Well, that depends on how big your current home loan is, what your current interest rate is, and how much you reduce that rate by.
But an analysis by RateCity shows the average borrower who has not refinanced their home loan in the past 12 months has paid almost $6,000 more interest during that period as a result.
Almost one in five (17%) borrowers surveyed by Canstar said they had no plans to refinance because they believe “it’s too much like hard work”.
Let’s clear the air on that one.
As home loan professionals, we’ll help you with the legwork, track down a home loan that meets your needs, help with the paperwork, and liaise with lenders on your behalf.
The bottom line is that we can streamline the refinancing process for you.
Put us to the test.
Get in touch today to see if your home loan is still suitable for your needs – and if not, we’ll help you find one that is.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
As we head towards the end of 2024, let’s take a look at how property markets performed over the last year – and discover what the experts say may lie in store for home prices in 2025.
2024 has been a year of change, with property values and market conditions shifting across many of our state and territory capitals.
In fact, the only constant has been the Reserve Bank of Australia’s cash rate, which has held steady at 4.35% since November 2023.
After a year that saw home values rise nationally by 5.5%, according to CoreLogic, it’s worth looking at what we can expect in the new year.
November 2024 saw home values rise nationally by a barely perceptible 0.1%.
Technically speaking, it’s the 22nd straight month of growth since January 2023. But realistically, 0.1% hardly qualifies as a cracking pace of growth.
Quite simply, CoreLogic says the market is losing steam, and a downturn is gathering momentum – particularly in Melbourne and Sydney.
That’s good news for buyers who may be able to take advantage of softer price growth in 2025.
However, in a market as large and diverse as Australia, it pays to drill down to local trends.
With this in mind, let’s take a look across our major capital cities.
Brisbane home prices have climbed 12.1% over the past year. Can the growth be maintained? Maybe, though perhaps not to the same extent. Domain is predicting price growth ranging from 5-7% for houses, and 7-9% for apartments in 2025.
Sydney is up 3.3% over the past year and likely hit a cycle peak in August. Home values have flattened or fallen ever since, says CoreLogic, with the city’s median home price of $1.2 million proving an affordability challenge. Domain is predicting a 4-6% rise in home values through next year.
Melbourne took out the wooden spoon for property price growth in 2024, recording a 2.3% fall in prices over the last 12 months. The new year could bring a change of pace. Domain predicts house values could rise 3-5% in 2025 though apartments are expected to drop by up to 2%.
Home prices in Canberra have barely budged in 2024, declining by just 0.1% in the past 12 months. Domain is taking an optimistic view, expecting house values to rise by 3-5% next year, while unit values could drop by up to 4%.
Hobart values fell 1% in the year to November, bringing the total falls to 12.1% since the market peaked in March 2022. However, more affordable prices plus generous stamp duty reforms launched in mid-2024 could make 2025 a big year for first home buyers in Tassie.
Home values in Adelaide have jumped 14% over the past year. However, CoreLogic says Adelaide’s 2.8% rise in values over the past three months was the lowest since June 2023. Even so, there may be plenty of steam left in the market, with Domain forecasting a 7-9% rise in prices in 2025.
Perth has seen home prices soar 21% over the past 12 months. But with listings up 33% in November, CoreLogic says the pace of price growth is slowing. Domain is expecting prices to rise by a more modest 8-10% next year – still nothing to sneeze at.
Prices in Darwin have barely budged this year, mustering up just 0.9% growth over the past 12 months. Next year may be better. SQM Research is predicting home values in Darwin could rise anywhere from 3% to 10% in 2025 depending on interest rates and population growth.
A cooler market could be the opportunity you’ve been itching for to buy a property next year.
Call us today if buying a first home, investment property or upgrading your current home is on your radar for 2025 – we’ll help give you a clearer idea of your borrowing power.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
The coming weeks will see millions of Aussies enjoy a well-earned getaway, and for some, a memorable holiday will inspire plans to buy a holiday home. But is it a good idea? And can a weekender still stack up financially? We explain what to consider plus tips to fund a vacation property.
It’s that time of year when we lock up our home, load up the car, and hit the highway to unwind with an all-too-brief sea or tree change.
It can add up to a wonderful experience, and some holidaymakers will stretch the vacation buzz a lot further by purchasing a holiday home.
But given the current state of property prices, is a weekender a smart move?
Here’s what to weigh up.
No matter whether you’re thinking of a coastal retreat or hinterland hideaway, homes in popular holiday spots can be pricey.
As a guide, an apartment in Coolum on Queensland’s Sunshine Coast, can set you back about $870,000.
If you’re thinking of a house in Byron Bay on the NSW north coast, you’ll likely need a budget of around $3.5 million.
That said, there can still be relatively affordable holiday spots.
A unit in Victoria’s seaside town of Portland, about four hours drive from Melbourne, can cost around $304,000,
And in the wine growing regions of WA’s Margaret River, or Tanunda in South Australia’s Barossa Valley, you may be able to pick up a house priced from around $670,000-$770,000.
Wherever you buy, a holiday home is likely to involve an outlay of several hundred thousand dollars.
That sort of money could pay for a lot of vacations around the nation – and across the world.
So, first and foremost a holiday home should stack up as a good investment.
This is where it’s worth putting down the pina colada and taking off the rose-tinted glasses.
Ideally, you probably want your holiday home to deliver long-term capital growth.
The thing is, vacation properties tend to be located in regional areas where price growth can be very different from our big cities.
That’s not to say regional neighbourhoods don’t tick the box for capital gains.
CoreLogic points to areas such as Mackay, Geraldton and Townsville, which are seeing “exceptional growth” driven by affordability and lifestyle appeal.
However, not all regional markets are booming.
The holiday town of Batemans Bay, on NSW’s south coast, and Victoria’s coastal city of Warrnambool, for example, have both experienced declining values over the past year, according to CoreLogic.
Long story short, be sure to research any area you’re looking at buying into to get a feel for how property values are likely to move in the future.
Gone are the days when most holiday homes stood empty for most of the year.
Platforms like Airbnb and Stayz offer a chance to put a vacation retreat to work earning short-term rental income.
The catch is that various state governments are limiting the number of nights these properties can be offered for rent each year.
Also, a number of councils such as Hobart City Council, have raised rates for short-term accommodation properties.
These factors need to be accounted for in your holiday home budget.
On the plus side, if your vacation property is rented out or available for rent, you may be able to claim at least some of the ongoing costs as tax deductions each year.
Loans for holiday homes work in much the same way as a regular mortgage, but with a few differences.
Demand for properties in holiday hot spots can be highly seasonal. This increases the risk for lenders, who may ask you to stump up a bigger deposit compared to an owner-occupied home loan.
Your vacation retreat could also be seen as an investment property, meaning you could be asked to pay a higher investment loan rate.
The big plus is that if you are a home owner, you may be able to use your existing home equity in lieu of a cash deposit on a holiday property.
Call us today to find out more about loans to buy a holiday home.
It could turn a vacation pipedream into a fun-filled, financially rewarding reality for your family.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
There are few better ways to beat the summer heat than floating in your very own pool. With a range of price points to choose from, a pool can be affordable, but will it add value to your property? And how will you pay for your backyard oasis?
Fun fact: more than 3 million Aussies have a backyard swimming pool or spa.
That’s about one-in-eight Australians, or as many as one-in-four in areas like the Gold Coast.
This popularity isn’t surprising.
Pools offer plenty of fun, with perks that go beyond staying cool in summer.
A pool can help you stay fit, encourage your kids to develop water confidence, and when it comes to home entertaining, a swimming pool can do lots of heavy lifting.
Before pencilling in dates for poolside barbecues, it’s important to set a budget for your swimming pool.
At the more affordable end of the scale, an above-ground pool can cost around $3,500 to $12,000.
If you’re keen on an inground pool expect to pay a lot more, with your budget likely needing to start at about $35,000 and can go as high as $100,000.
Bear in mind, a pool usually needs a few extras including a filter to keep the water clean. You’re required by law to install childproof fencing, and some basic landscaping will help keep your pool clean and inviting.
All these extras should be included in your budget.
Don’t forget to allow for ongoing expenses too.
The additional power and water consumption plus pool supplies such as chlorine can all add up.
Depending on the size of your pool, regular maintenance can cost between $65 and $165 each month.
Pools are super popular when it comes to real estate.
In 2023, “pool” was the most-searched term among home buyers across Australia.
Even so, the jury is out on how much value a pool will add to your home.
Real estate group Ray White says your property’s value is expected to rise by at least the cost of installing a swimming pool.
So if you spend, say $50,000 on a pool, you could hope that the value of your place rises by a minimum of $50,000.
Still, a pool doesn’t always increase the number of interested buyers at sale time. The cost and effort of maintaining a pool has the potential to turn some buyers away.
A quick call to a local real estate agent can shed light on whether pools are a sought-after feature in your area.
The next step is to decide how to pay for your pool.
Dipping into savings means avoiding interest charges though it can be a good idea to have sufficient spare cash available to manage unplanned bills or expenses.
Using a personal loan could keep savings intact, and the fixed term provides a clear end date when the slate will be cleared.
Or, you may want to tap into home equity and add the cost of a pool to your home loan – which can come with the opportunity to review your current loan to check that it’s still a good match for your needs.
You’ll want your new pool to last for many years – but perhaps not the loan that pays for it.
That’s why it’s important to talk to us about financing your swimming pool.
We’ll dive into the market to track down the option that’s suited to your needs, leaving you free to straighten up your backstroke, dust off the pool noodles and focus on the fun times ahead in your backyard paradise.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
You’ve seen the perfect piece of land but you’re not quite ready to build. No problem – a land loan can be a handy finance solution. However, it can work a bit differently from a regular home loan. Here’s what you need to know.
Not everyone wants to buy an established home or even a house and land package.
Sometimes you just want to buy a vacant block, pay it down and give yourself a breather before paying for the cost of building a home.
Or maybe you’ve seen an exceptional block listed for sale that ticks all the boxes for your ideal future home site – and it just seems too good an opportunity to miss.
Whatever the case, it could be possible to take out a loan for land only. Here’s how it works.
Land loans, also known as vacant land loans, are dedicated to financing the purchase of a vacant block.
In some respects, these loans work along the same lines as a traditional mortgage in that you pay a deposit, borrow a set amount and then select fixed versus variable rate options.
There may even be the opportunity to add an offset account or make interest-only payments rather than principal plus interest repayments.
But it pays to read the fine print. Depending on the lender and product you choose, land loans can come with unique conditions that you need to be aware of.
Vacant land can potentially take longer to sell than an established house and land.
This raises risk for a lender, should you default on your repayments and (after other possible avenues are exhausted) the bank has to repossess and sell your property.
Banks may manage this risk by asking borrowers for a bigger deposit – one that goes beyond the standard 20% down payment.
The bigger the block, the bigger the deposit you may be required to have, particularly if you’re buying vacant acreage.
As lenders may see vacant land as higher risk, you may be asked to pay a higher interest rate compared to a regular home loan.
This highlights the importance of talking to us before you commit to buying.
By doing so, you can be more confident that you can manage the loan repayments – and are paying a competitive interest rate.
In general, lenders often like to see that a borrower has plans to build on vacant land within a few years of buying the block.
Your lender may even require you to construct a home within a set time period. Not always, but sometimes.
This is another factor you should talk to us about.
A requirement to build by a specific deadline has the potential to reshape your plans, including what you can afford to build and how you’ll finance it (potentially a construction loan).
Buying vacant land now and building later can seem like a cost-effective way to get your dream home in your ideal location.
But there are plenty of other factors that lenders will also want to consider before approving an application, including access to the site, the shape and make-up of the land, and what service utilities you’ll be able to tap into.
So if you’ve been eyeing off a vacant block, give us a call first to find out what land loan options might be available.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Your home is possibly the most valuable asset you will ever own. So it’s worth taking precautions to help ensure you buy a place that has a clean bill of health, free from budget-busting hidden nasties.
Even the most attractive homes can hide unwanted surprises, and it’s not always easy to spot a problem property.
Arranging a pre-purchase pest and building inspection gets a professional on the case to possibly reveal any dodgy or deteriorating building work or hard-to-spot pest infestations.
It can help you avoid unplanned repair bills and/or provide a red flag that you’re looking at a property with the potential to turn your home-buying dream into a costly nightmare.
A pre-purchase building inspection involves a qualified person, often a licensed builder, physically inspecting a property to check for serious defects such as faulty footings or rising damp, which can be expensive to fix.
You can organise a building inspection in isolation, or for a small extra cost you can often add in a pest inspection. This can help alert you to whether or not you’ll be sharing the home with a variety of destructive creepy crawlies such as borers or termites.
Experts say common faults and defects picked up by pest and building reports include active termite infestations, construction faults and the need for plumbing and wiring to be replaced due to safety concerns.
These sorts of issues can leave a buyer facing substantial – and often unplanned for – expenses once they take ownership of the property.
Buying a home often brings a raft of upfront costs, and it can be tempting to cut back where possible.
But a pre-purchase pest and building inspection is one expense you probably don’t want to sidestep.
Exactly how much you pay will depend on the service you use and the size of the home.
As a guide, HiPages says a building inspection fee on average can range from about $200-$300 for a smaller property to $400-$500 for an average-sized house.
Add in a pest inspection, and you could be looking at around $100-$150 extra.
If a home gets the thumbs down after a pest/building inspection, it’s not necessarily the end of the world – especially if the property ticks plenty of other boxes for you.
You can use a pest and building report to try and negotiate a lower price.
The key is to be confident that any offer you make takes into account the cost of fixing any faults noted in the pre-purchase inspection. That can mean gathering quotes from builders and/or pest exterminators before you make a formal offer.
Alternatively, you may decide it’s not worth the risk, and start your home hunt afresh.
Talk to us for more information on the pre-purchase checks worth making before committing to buy a home. It could be the difference between buying a quality property versus a bricks and mortar lemon.
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