Rebecca Mitchell From Mpowered Finance : Recent Episodes
Rebecca Mitchell
☆ Financial Expert ☆ Divorce Finance Specialist ⇰ I help First Home Buyers & First Time Investors property owners cut through Red Tape and Save Money.
So this is the final episode in my dedicated self-employed series. I hope that this has been helpful & as always please reach out if you want to have a conversation.
So this is Part 2 of my series dedicated to those that are Self Employed I hope that you enjoy it. Please feel free to reach out for a one to one conversation.
So I am putting together this three-part special for self-employed people looking to buy a property or refinance the one they already have.
I hope that you all get something out of it.
You’ve bought a home. And now you might be considering adding an investment property to your portfolio. But have recent interest rate hikes cooled your heels? We’ve outlined reasons why now may still be a good time to buy.
Nurses, midwives and other important healthcare professionals can now qualify for a lenders mortgage insurance (LMI) waiver policy. Here’s how it could save them thousands and fast-track their journey into home ownership.
A recent study has found that divorced women’s ability to financially cope with their reduced incomes improves over time, particularly as they enter retirement.
There are many advantages to purchasing a house and land package, especially if you are looking to invest in your future. By bundling the purchase price of the land and the home, as well as the cost of construction, you can save a significant amount of money. In addition, package deals can be a great way to get into the housing market, especially if you are looking for a new home and land at the same time.
The RBA has hiked the official cash rate by another 25 basis points to 2.60%.
This will increase mortgage repayments by a corresponding amount. The total effect of the rate hike will be felt by December.
If you’re worried about how you’ll meet your repayments in the months ahead, give us a call today. We’d love to sit down with you and help you work out a plan moving forward.
In the meantime, here are some things you can do to ease the pressure on your finances:
Well, let's just say it might be a good time to start preparing now - even if you still have a year or two before your fixed rate ends.
Sure, fixed-rate mortgage holders aren't feeling the heat of the recent RBA monthly cash rate hikes just yet.
But once the period of your fixed home loan expires, it will likely revert to a variable interest rate, which may cost you many hundreds of dollars extra per month.
If you think that could put some strain on your budget, it's wise to start preparing a bit of a buffer now.
And if you'd like us to help you prepare a more detailed strategy, we'd be happy to give you some ideas.
To find out more, DM me or contact Mpowered Finance on:
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0412 481 983
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rebecca@mpoweredfinance.au
Attention first home buyers: heard of the First Home Guarantee scheme?
It lets you buy a property with just a 5% deposit and not pay lenders mortgage insurance.
On average, FHG buyers from 2020 have already built up an additional 26% equity in their homes*
That means people who borrowed 95% of the purchase price have already reduced their loan to under 70%!
And less than 30% of their income was used for home loan repayments
Speak to us to see if you’re eligible to take advantage of the FHG and get into the property market
To find out more, DM me or contact Mpowered Finance on:
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0412 481 983
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rebecca@mpoweredfinance.au
- NHFIC
The RBA has hiked the official cash rate by another 25 basis points to 2.60%. How much will this rate hike increase your monthly mortgage repayments, and when will it kick in?
The recent decline in rental properties has caused many to feel uncertain about their housing situation. Here’s how you can leave renting in the dust and make homeownership a reality.
Electric vehicles financed under a novated lease are to be exempt from Fringe Benefits Tax (FBT) from July 1.
The discount is available for battery electric cars, hydrogen fuel cell electric cars and plug-in hybrids below the $84,916 luxury car tax threshold for fuel-efficient vehicles.
It means a $50,000 electric vehicle such as the Nissan Leaf will be $9,000 a year cheaper for employers.
For individuals using salary sacrifice to pay for the same model, their saving would be up to $4,700 a year.
Savings will be even higher for more expensive models up to the luxury car tax threshold.
Household budgets around the country are feeling the brunt of five back-to-back rate hikes. But just how long does it take for each rate rise to impact your monthly mortgage repayments? ⏳
Ever heard of the 'loyalty tax'?
Multiple studies* have found that older mortgage holders typically pay a higher interest rate than customers on new loans.
That's because banks try to attract newer customers with their best rates, but don't automatically extend those same rates to existing clients.
A recent study** found that older customers of the big 4 banks pay an interest rate that is 0.91% higher than new customers – forking out an extra $70,000 over the life of a $500,000 loan.
So if you'd like your lender to stop taking advantage of your loyalty, come speak to us today about refinancing.
Prices are falling Property prices dropped 1.6% in August, the largest national monthly decline since the 1980s. And ANZ economists are predicting a 15-20% drop next year.
But once those prices bottom out, you’re likely to face stiff competition – with plenty of other would-be home owners flocking to take advantage of relatively low prices.
And as we know in the property world, what goes down must come up, with prices expected to recover in 2024.
So if you’re ready to buy and want to take advantage of falling prices, sooner may work better than later.
Get ahead of interest rates It feels like another month, another rate rise. The RBA recently hiked interest rates for the fifth month in a row. And the RBA governor has indicated more rate rises to come. It may seem odd, but buying now could be of benefit.
You see, lenders assess your borrowing capacity at an interest rate of 3% more than the loan you’ve applied for. That means as rates go up, the hurdle you need to clear for loan approval increases.
In other words: your borrowing capacity falls.
So getting ahead of rate rises now may make for a smoother loan approval process and higher borrowing power.
Come and speak to us There’s no denying that picking the market can be tricky.
But finding the right home can be trickier, and you just never know when it’s going to pop onto the market.
So if you see a home you like and it’s in your buying range, get in touch today to find out your finance options and borrowing capacity.
We can help take care of the finance side of things, while you concentrate on the house hunting and negotiations!
Recent back-to-back interest rate hikes have led to a cooling of the property market, and with more rate rises predicted, you may feel like pumping the brakes on purchasing. But could the current climate offer opportunities?
With the predictions of coming rate rises and falling house prices, it’s not surprising many potential buyers are holding off.
But if you’re ready to buy, now could be an ideal time to strike – with other buyers holding back you could have more homes to choose from, less competition and more bargaining power against the vendor.
It’s a sentiment that’s starting to show in polling, with the Westpac-Melbourne Institute Index of Consumer Sentiment lifting by 3.9% between August and September – the first increase in the index since November last year.
Similarly, CommBank’s Household Spending Intentions index showed a 10% increase in home buying intentions this past month.
So if you’re ready to buy, or you’re on the fence, read on. We’ve outlined why it could be a good time to do so.
Less competition Competition has been fierce and housing supply limited over the past few years, leaving slim property pickings for many.
But recent rate rises and inflation have made potential buyers hesitant.
We saw this in auction clearance rates at the opening of the spring buying season – typically a busy time for sales.
However this year the combined capital city auction clearance rate is sitting at 62%, according to CoreLogic, down from 74% a year ago, and a peak of 80% in March 2021.
And a softer market may not only mean less competition on auction day, but more choice and time to comprehensively evaluate properties without jostling with other contenders.
Less competition also means the power balance has shifted to the hands of buyers, which brings us to our next point.
It’s a buyer’s market Are you ready to rock and roll with your finances? Then you could be in a position to negotiate on price and terms.
CoreLogic data shows fewer people are buying, with properties now sitting on the market for longer. In the three months to August, median days on market shot up from 20 days to 33.
Vendors want sales and are anxious about moving their property.
If you’re prepared to negotiate, consider targeting properties that have been on the market for a while – you may land a good price.
5 ways you can absorb interest rate rises
Another month, another RBA cash rate hike.
If you’re having a little trouble hanging in there, here are 5 suggestions to help you alleviate some pressure on the household budget
- Build up a buffer: if you can, start putting extra money into an offset account, redraw facility, or savings account.
- Reduce expenses: entertainment subscriptions, take-away coffees and takeaway food all add up each month.
- Shop around: you can usually find a better deal on car, home and pet insurance, utilities, and your phone and internet bill.
- Refinance: if you haven’t refinanced in a while, you could get a better rate on your home loan.
- Speak to us: everybody’s situation is different. We can help you work out a specific plan moving forward.
To find out more, DM me or contact Mpowered Finance on:
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0412 481 983
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rebecca@mpoweredfinance.au
Property prices are tipped to fall: are you in the market to buy?
If so, here’s how you can start preparing:
- Research the market to see what’s out there and get an idea of the price
- Keep your tax returns up to date so lenders can quickly assess your income when the time comes
- Reduce unnecessary expenses so you look like a savvy spender
- Build up your deposit with genuine savings
- Speak to us about your borrowing capacity and pre-approval so you know what your borrowing limit is