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Brody Willis

Real Estate Sales Person Goulburn First National

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Blog · October 17, 2019

SHOULD I BUY NOW OR WAIT UNTIL THE FIRST HOME LOAN DEPOSIT SCHEME STARTS?

As you slog away, saving the deposit for your first home, it’s difficult not to get excited when new government incentives are announced. From the First Home Owner’s Grant, introduced in 2000, to the First Home Super Saver Scheme of the 2018 Federal budget, Australian first home buyers can hardly complain there’s nothing in it for them, especially when the lowest interest rates in history balance out the fact that prices are much higher than 30 years ago (when interest rates were in excess of 18%).

SHOULD I BUY NOW

The latest hot deal being offered is the Federal Government’s First Home Loan Deposit Scheme. Kicking off on 1st January 2020, the scheme is open to singles earning up to $125,000 and couples earning up to $200,000, as long as they have a deposit of 5% of the value of their property saved.

This offer is limited to 10,000 first home buyers annually. 2018 figures show there were 110,000 first home buyers last year, that would indicate that this would reach around 1 in 10 Australian first home buyers in 2020.

The scheme basically means that the government will guarantee loans up to 20% of the property’s value, allowing buyers to “get their first leg onto the first rung of the ladder”, as Prime Minister Scott Morrison puts it. This government backing also means buyers will save on mortgage insurance, which means another $10k or so, back in their pocket. However, the government guarantee only lasts until you refinance.

So, as a buyer saving the deposit for their first home, where does that leave you right now?

The First Home Loan Deposit Scheme doesn’t take effect until 1st January 2020, which means the next few months could be make or break for many. First National Real Estate’s chief executive, Ray Ellis’ advice is – if you have the deposit, buy now. “We have record low interest rates and potentially more cuts on the way, APRA (Australian Prudential Regulation Authority) has reduced serviceability buffers, there are substantial stamp duty concessions available, and the federal government’s 5% deposit scheme is just months away from implementation”.

There’s plenty of speculation as to whether the property market will rise, drop or continue to plateau. The question of buying now or waiting until the scheme starts in 2020 – you can’t get an exact answer. We can only speculate at this stage.

It’s true the scheme will benefit some, but given the odds of 1 in 10 actually getting to receive it, you have to hedge your bets to determine how much risk you want to expose yourself too. Not only could you miss out on acceptance to the scheme, you may then find yourself priced out of the market, needing even more of a deposit than your original goal.

Our advice is to embrace the gradual upturn, capitalise on record low interest rates, stamp duty concessions and improving borrower conditions and get in now before the market potentially leaves you behind.

Source: First National Real Estate 

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Blog · November 7, 2019

MYSTERY SHOP THE AGENT

MYSTERY SHOP THE AGENT

The selection of the selling agent is usually decided upon from an interview and/or a sales proposal process. Whether it’s an interview or a sales proposal that you are using to determine your agent, neither actually shows the agent in action. Agents are fully rehearsed with scripts and …

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Blog · November 4, 2019

RELAY FOR LIFE 2019

RELAY FOR LIFE

On the weekend of the 2nd & 3rd November we saw yet another successful turnout for Cancer Council’s Relay For Life. This has been our 4th year supporting Relay For Life & we are so proud to be a part of it. This year the committee announced that 33 teams & 307 people registered. …

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Blog · October 30, 2019

HAVE YOU BEEN OUT ON A BUCK’S NIGHT? THE QUESTIONS BANKS ARE ASKING

BUCK’S NIGHT

Mortgage brokers have been asking some highly intrusive questions in the wake of the banking royal commission. With banks tightening their criteria for lending to Australians, brokers have reported asking more personal questions. Pro Solution Private Clients associate director Jodie McKeown, …

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Blog · October 23, 2019

THE ‘HEART BUYER’

THE HEART BUYER

The location is ideal, it has the right number of bedrooms and living spaces, the yard is great – it feels like the perfect home. Occasionally, a buyer matches a property to perfection. This buyer is going to live in the property. It will become their home. There is an instant and strong …

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Blog · October 17, 2019

SHOULD I BUY NOW OR WAIT UNTIL THE FIRST HOME LOAN DEPOSIT SCHEME STARTS?

SHOULD I BUY NOW

As you slog away, saving the deposit for your first home, it’s difficult not to get excited when new government incentives are announced. From the First Home Owner’s Grant, introduced in 2000, to the First Home Super Saver Scheme of the 2018 Federal budget, Australian first home buyers can hardly …

Continue Reading

Blog · October 10, 2019

AGENT’S TRICKS TO CREATE VENDOR MOTIVATION

AGENT'S TRICKS TO CREATE VENDOR MOTIVATION

If you want above market price for your property, agents have a number of tricks to bring you back into line. Some of these tactics are subtle, others are more transparent. Either way, when you know what they are, you stand some chance of protecting yourself. Pre-auction low offer – If you …

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Blog · October 3, 2019

LOOK BEYOND FEES FOR EFFECTIVE MANAGEMENT

LOOK BEYOND FEES FOR EFFECTIVE MANAGEMENT

Majority of property investors spend too little time assessing the skills of their property manager and need to look beyond fees when choosing who will manage their investment portfolio. The commitment required to effectively maintain properties, quality client relations, legislative compliance, …

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Blog · September 26, 2019

FLAWED REAL ESTATE STRATEGIES 4/4: PUBLIC AUCTION – BUYERS

Auction

Inspired by Andrew TrimAuthor of Real Estate Dangers While the public auction method certainly costs the seller both financially and emotionally, the buyer is also deceived. Transparency only applies on auction day. During the lead up to a public auction, the lack of transparency of the process …

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Blog · September 19, 2019

FLAWED REAL ESTATE STRATEGIES 3/4: PUBLIC AUCTION

PUBLIC AUCTION

By Andrew TrimAuthor of Real Estate Dangers For most agents, public auctions are all about advertising revenue and personal profile. Public auctions are promoted widely throughout the real estate industry and major media organisations. You can’t have a public auction without the significant spend …

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CONTACT

0428 425 459

brody@goulburnre.com.au

OFFICE

02 4822 8711

www.goulburnrealestate.com.au

LOCATION

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Goulburn, NSW

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