As if keeping track of the property market wasn’t a full-time job in itself! When you buy a property, it’s more than just the advertised price you’ll need to factor into your plans.
Home loan application fees
There’s no such thing as a free lunch, and many lenders charge you a fee for the privilege of applying for a home loan.
Part of their rationale is presumably to cover the costs of processing your application, as well as it acting as a deterrent from applying with multiple lenders (which would impact your credit rating). An application fee covers:
But wait, there’s more!
…And there’s still more!
If you want help applying for finance, get in touch today.
Who remembers receiving $20 in a Christmas card from a relative? Or maybe it was $5 or $10, depending on how far back we’re talking.
And whether you’d already spent it in the time it takes to receive an extra-long hug from THAT Aunty, or you’d deposited it straight into your savings account with THAT bank, or you’d invested it into your latest and greatest money-making venture – there’s a good chance that those same money habits are with you today.
If you’re thinking about gifting some cold, hard cash to the little ones in your life, then have a think about how you can help them develop a good relationship with money, because as we all know: old habits die hard.
Giving cash is probably more useful than ever in today’s increasingly cashless society, because it gives kids a more tangible insight into how money works.
Here are five ways to help children think about money:
Note: We’re not saying there’s a right or wrong way when it comes to someone’s money mindset, but we’re big believers that knowledge is power.
Tell them about the money jar concept, where they’d portion out their money into key categories: save, spend, invest, donate, and then have to decide upfront how much they want to devote to each. Using physical jars helps kids understand an otherwise abstract idea. When they’re making decisions about where to send their money, they can see that they’ve only got their allocated funds to work with, and so it helps them learn to be more disciplined and purposeful with their decision-making.
Talk about opportunity cost, so when they’re deciding on whether to buy something, highlight what they’d be missing out on. Little Ryan wants to go on that $20 ride again? Remind him he won’t have money left to buy the showbag. Sounds a bit like being Fun Police, doesn’t it? But before long they’ll be pre-empting you and considering the opportunity cost before you’ve had a chance to prompt them.
Talk about the difference between good debt (debt that allows you to invest in wealth-building channels like property), and bad debt (debt that costs you). For example, if they ask for a $50 loan, charge them (a nominal amount of) interest. Get them thinking about whether they want to pay compound interest, or earn it.
If you’re living a comfortable life, kids can get the impression that money grows on trees, right? Think about letting your kids know how much money you earn, and what’s involved (i.e. the long hours, years of education and training). Of course, you may want to tell them not to bring it up at Christmas lunch – we’re not necessarily suggesting you become that transparent!
Setting up a very modest portfolio can be an incredible way to introduce children to the concept of trading shares. With the various apps around these days, the barriers to entry are not what they once were, and trading shares certainly isn’t just for trust fund babies. Make sure you speak to your accountant and/or financial adviser for guidance around the capital gains benefits.
We must have one of the most robust property markets in the world, and here's another piece of research that proves it.
Data released by one of the Big Four banks shows that at least 1 in 10 homeowners are in the process of selling up, while 1 in 3 are considering selling their home in the next five years.
Many are motivated by a desire to upgrade to a more lifestyle-friendly home, or at least one that incorporates a home office.
And who can blame them? The combination of historically-low interest rates, improved consumer sentiment and our robust economy are creating confidence that they’ll secure a hefty sale price.
There is also significant demand from first home buyers, with 1 in 5 Australians planning to buy a first home in the next five years.
So, what do you need to consider when selling your property? Here are some of the costs involved:
Listing with an agent
Most Australians choose to enlist a professional real estate agent to sell their homes. If you follow suit you’ll be up for marketing costs, the agent’s commission, and potentially auctions costs as well.
Sprucing up any kitchens and bathrooms
Kitchen and bathrooms can date quickly, and so many buyers invest in making minor cosmetic changes to these wet areas to help modernise the overall look and feel of the property.
Landscaping the garden to improve kerb appeal
Let’s face it, we’re all just a bit shallow, and having an attractive street frontage can be enough to convince a prospective buyer to inspect your property. And of course more interest can generate a better price.
Mortgage early exit fee
One of the many and varied reasons why it’s worth securing your home loan through a trusted finance broker – because you don’t want the fine print to bear any nasty surprises!
This is an essential service required to transfer the ownership of the property from you to the buyer, and will usually cost between $1-2k.
Reach out if you need help covering the difference between your sale price and your forever home.