Mortgage Tips & Tricks Australia

Has your bank taken the time to understand you?

🔹You can walk into a bank and get a loan.

🔹You can apply online with some lenders to get a loan.

🔹Finding someone that wants to give you a loan is not difficult.

But when was the last time you were asked about your goals and objectives?❓

🎯I’m not referring to the compliance questions that they are required to ask you, I mean the ones that matter - to you.

➡️At Sprint Finance we have only one goal, one aim - that’s to find what’s important to you and your financial goals and help you achieve them.🤝

We are a customer-focused business, it’s in our DNA.

⁉️So what is it you’re trying to achieve, and how can we help you get there?

➡️Let us know by getting in touch with us.

𝐀𝐫𝐞 𝐡𝐨𝐮𝐬𝐞 𝐩𝐫𝐢𝐜𝐞𝐬 𝐠𝐨𝐢𝐧𝐠 𝐭𝐨 𝐤𝐞𝐞𝐩 𝐟𝐚𝐥𝐥𝐢𝐧𝐠 𝐢𝐧 𝐯𝐚𝐥𝐮𝐞?

Several headline articles have been appearing in every major news publication.

There are predictions that houses will fall further (they’ve come off record highs in recent months).

But how accurate are these predictions?❓

Let’s have a look at some past predictions to gauge their accuracy:

🔹10% decline predicted - Westpac and ANZ

🔹15% decline predicted - NAB

🔹32% decline predicted - CBA

➡️The date of these predictions: May 2020.

The reality: Home values have grown by between 20-30% + throughout the country since then.🏡

❓How much would acting on these predictions have cost you in future wealth?

𝗗𝗼𝗼𝗺 𝗮𝗻𝗱 𝗴𝗹𝗼𝗼𝗺 𝗴𝗿𝗮𝗯 𝗵𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀, 𝗯𝘂𝘁 𝗶𝘁 𝗱𝗼𝗲𝘀𝗻’𝘁 𝗯𝘂𝗶𝗹𝗱 𝘆𝗼𝘂 𝘄𝗲𝗮𝗹𝘁𝗵.

Here’s our predictions and recommendations:⬇️

📌Over the long-term good quality properties in good locations will grow in both value and rental return.

📌 The key to generating wealth in real estate is spending time in the market and ignoring the news cycle.

📌 Know why you’re investing and invest when it’s the right time for you. Seek professional advice on both when and where to buy.

Do you enjoy budgeting? Most people we speak to don’t, but we have found one very powerful way to get the same results as a budget.

🎯It all involves creating simple categories for your money.

👉The first is your savings fund - this gets you into the habit of paying yourself first (we’ll talk more about this in a post later this week). Put a recurring amount each pay cycle. Start small, it’s really the habit we’re trying to create here that is the important part.

👉Groceries allocation - so the amount each week/fortnight/month that you will allow yourself to spend on food and groceries.

👉Holidays and entertainment - the amount you can set aside for short-term activities (dining out, weekend outings etc) and long-term activities (domestic or overseas travel)

👉Fuel costs - the amount you’ve allocated to spend on fuel for your car each week.

👉All other recurring expenses that you need to pay eg. Electricity, phone, and insurance are set up to automatically debit out of your account.

✅The great thing about the above steps is they’re easy to track and repeatable.

❓How do you track your spending at the moment?

𝐇𝐨𝐰 𝐭𝐨 𝐛𝐫𝐢𝐧𝐠 𝐝𝐨𝐰𝐧 𝐲𝐨𝐮𝐫 𝐦𝐨𝐧𝐭𝐡𝐥𝐲 𝐫𝐞𝐜𝐮𝐫𝐫𝐢𝐧𝐠 𝐜𝐨𝐬𝐭𝐬.

Here’s 3 quick tips to bring down, reduce and remove monthly recurring costs.⬇️

✅Do a quick audit on your own credit card/savings statements and look for any recurring expenses you’re no longer needing.

✅For any, you wish to keep - look if there’s an annual payment option to bring down the cost (this is common in subscription services + insurances).

✅Contact your provider and ask them for an additional discount and if they can’t, find out if a competitor has a better priced product.

🎯These 3 steps are quick and easy to implement and could stop you from overpaying $100’s each and every month.

“Just pay more off your mortgage each month and get an offset account."

This is one of the most common responses to the question “How do I pay my mortgage off sooner?”

But it’s missing one important part. Why?

❓Why do you want to own your home sooner?

❓When was the last time you asked yourself this question?

Start there.

During this week we’ll be sharing both mindset and practical tips that have helped save our clients years off their mortgage terms.

Pay yourself first!

Most of us pay bills and save whatever is left. Often this isn’t much.

🎯We have found, with a simple re-frame we were able to completely change the mindset and outcome for our clients.

🔹Pay, or rather save for yourself first. Then spend the rest.

🎯This means taking an allocation of funds every pay cycle and putting them in a dedicated savings/investment account.

🔹Then you spend what’s leftover.

𝐃𝐨 𝐲𝐨𝐮 𝐰𝐚𝐧𝐭 𝐚 𝐠𝐫𝐞𝐚𝐭 𝐩𝐫𝐢𝐜𝐞 𝐨𝐫 𝐠𝐫𝐞𝐚𝐭 𝐬𝐞𝐫𝐯𝐢𝐜𝐞?

When building your property strategy, it’s easy to look for the cheapest rental manager, the cheapest property agent, and the cheapest insurance option.

But is that the best option?

What is costing you in the long run? ⁉️

The great thing about our service - we will provide you with great quality loan options and work with your team of professionals at no cost to you. 🤝

Don’t wait, contact today.

“If you think it’s expensive to hire a professional, wait until you hire an amateur.”

🔹Can you afford the cost of the wrong advice?

🔹How much capital growth would you miss out on investing in a subpar location?

🔹How much stress would be settling on a property be with a non-responsive conveyancer?

🔹How much rental income will you lose over the life of a property with the wrong type of rental manager?

🎯The right team of professionals is the difference between a semi passive property investment, and something that’s hard work.

You can be forgiven for being a little confused by the mixed messages in the media.

➡️Our economic growth keeps getting adjusted upwards, yet we’re being warned of a pending recession.

➡️The RBA keeps increasing interest rates, and experts are now predicting that by 2023 rates will reduce.

➡️The housing market is in “freefall”, yet prices are higher than in 2020.

These seem contradictory. They are. And often, the confusion and contradictory statements stop us from taking action.

🎯We want to wait. Wait till things are certain. Maybe wait till prices rise by 10,20,30%. Then we’ll invest. Then we’ll jump in.

🎯When seasoned property investors hear uncertainty, they sense opportunity.

👉This might be the best time in a decade for you to find a good long-term asset to add to your portfolio. Are you going to take it?

𝐓𝐡𝐞 𝟑 𝐖’𝐬 𝐨𝐟 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠

❓Why – are you investing in the first place?

🗺️Where – will you invest?

⌚When – will you exit out of the property investment?

🏡Will an established home give you more capital growth than building a new one?

When you buy an established home, that is, an older home, there’s the option to make improvements (add rooms, subdivide and generally renovate).

Whereas a brand new home on a newly completed block of land doesn’t have these same options.

So on the surface, it would seem that if you want to make capital growth on real estate, you would only buy established properties.

But we need to consider two things:⬇️

✅The area you’re purchasing (the research)

And

✅The reason you are purchasing (your needs)

The benefits of established have been discussed above, here’s some of the benefits of building new:

🎯Potentially higher depreciation benefits
🎯Higher potential for larger rental yield (tenants will pay a premium for newer properties)
🎯Potential stamp duty savings when you build

There is no one size fits all. A well-purchased property that meets the right market fundamentals - whether new or old - will trump a hastily purchased property the majority of the time.

❓So what do you do, and where would you go for advice?

I would look for a specialist or specialised property consultant with experience in the market you’re entering.

They can guide you through a structured process, based on fundamentals and data.

❓How would you buy your next property?

Could the uncertainty on housing prices right now present one of the best opportunities for you to buy?

Interest rates have risen. Building costs have risen. There’s some negative sentiment with the “R” word being talked about.

That also means opportunities will appear.

🎯So, how do you take advantage of these opportunities when they appear:

➡️Know what you can borrow up to - organise a fully assessed pre-approval today so you know the maximum you can purchase for your property

➡️Research the areas you want to live in and the property types you want to buy.

➡️Consider using professional advisors such as to help with this process. Contact Sprint Finance today!

Is it still possible to buy cash flow positive real estate?

With rates rising, the cost of owning an investment property is now more expensive.

In some areas, rents are also rising, but not enough to offset the difference.

So how do you buy a property that returns you positive cash flow in the current environment?⬇️

✅Do large volumes of research on why you’re investing, and where you want to invest.

✅Purchase good quality property in good long-term growth areas

✅Hold the property for the long term. Almost without exception, you’ll find if you hold the property long enough, the rental will increase over the long term. It will not happen instantly.

🎯The key here is 𝗵𝗼𝗹𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗮𝘀𝘀𝗲𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗹𝗼𝗻𝗴 𝘁𝗲𝗿𝗺.

❓Do you want to be rich with wealth or rich with time?

🎯The reason why property has been one of the most powerful ways to invest is the longer the time period you own it, the higher the value and rental return tend to be.

👉The combination of rising income and rising asset values gives you choices and financial freedom.

👉The choice between working a 5+ day week and swapping to less hours.

👉The choice between the job that pays well and the job we’re passionate about.

⁉️Is it easy, no? But is there a formula that just about anyone with a wage can follow, yes! ✅

⬇️📞Contact us via the link in the comments to find out how we can help you with your property journey.

𝗛𝗼𝘄 𝘁𝗼 𝗽𝗿𝗲𝗽𝗮𝗿𝗲 𝗳𝗼𝗿 𝗮𝗻 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲 𝗿𝗶𝘀𝗲.

Interest rates will almost certainly rise further from where they are right now.

So how do you prepare for increased repayments? ❓ Start making them now.

🎯Start off by paying an extra few hundred each month onto your mortgage the moment you get paid.

⬆️Progressively increase it over the next few months.

🙌This will give you the dual benefit of being ahead of your monthly repayments (providing a safety net of additional funds).

Would you like help planning this out? 📞 Contact us at sprint finance today via the link in the comments! ⬇️⬇️

𝗔𝗰𝘁𝗶𝘃𝗲 𝗶𝗻𝗰𝗼𝗺𝗲 𝘃𝘀 𝗦𝗲𝗺𝗶 𝗣𝗮𝘀𝘀𝗶𝘃𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀.

🎯With active income, your involvement time is needed for the income to continue to come in. E.g., working in a job, side hustle and even most self-employed fall into this category.

🎯With semi-passive income, the asset/income increases with minimal involvement from you. Examples are shares, superannuation and property investment.

💎Wealth is created when you use your active income to create more long-term semi-passive investments. The two work together perfectly.

❓What’s your long-term wealth plan?

Do you have an existing property and are looking to purchase again over the next 12 months?

👉Accessing the equity now - through a loan increase or loan restructure may be very beneficial to you.

👉The reason: The bank value now may be higher than in the next 6 months.

Here’s how it works:⬇️

➡️You unlock the equity now through your property.
➡️The funds sit with an offset account, so you’re not paying interest on them.
➡️When you’re ready to purchase, the funds are sitting there as a deposit. Giving you peace of mind.

❓Why would we recommend this? Because we deal with facts, data and your best interests. If there’s a small reduction in the property value, then you’ve locked in a higher valuation (read more funds).

Conversely, if your property continues to increase in value, we can further borrow against your existing home when you’re ready.

This means you win either way.

Property investment tip:👉 Are you maximising the tax benefits of your next investment purchase.

🏡If you’re a couple purchasing a home to live in, you will most likely buy your property as joint tenants (each of you owns an equal portion of the property).

The above structure makes sense because there are limited/no tax benefits in an owner-occupied home.

➡️For investment, it’s a different story. And the structure can have very large implications on your cash flow.

➡️If one of the two of you has a larger income, your accountant may recommend looking at a “tenants in common” structure. This is where a larger portion of shares are often owned by the spouse with the larger income, which in turn, could give them a larger tax benefit.

✅The difference could prevent you from spending $1,000’s in additional tax, but as always, seek the advice of your accountant.

👉Just another reason why having the right team on your side is an essential part of your property-building journey. Contact us today via the link in the comments.⬇️

When you plant fruit trees, the benefit is rarely immediate. They take time to grow.🌳

The initial progress is slow, but each day there’s a little more growth than the last until, finally, you have the literal fruits of your labour.

Why do I mention this? Because it’s the perfect metaphor for investing in real estate. Although benefits aren’t immediate when they come, they are long-lasting.

Look after your tree today, and your tree will feed you for many years.🌳

Why do we encourage research and education as part of the process towards building a property portfolio for our clients?

💎Because these are skills, and once learned, they can be repeated. Wealth is the by-product of them successfully following a set process.

💎If they had their wealth taken away from them, they could apply the same process again for the same positive outcome.

❓How are you adding to your knowledge?

𝗜𝘀 𝘁𝗵𝗶𝘀 𝘁𝗵𝗲 𝘄𝗼𝗿𝘀𝘁 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗼𝗿 𝘁𝗵𝗲 𝗴𝗿𝗲𝗮𝘁𝗲𝘀𝘁 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗹𝗮𝘀𝘁 𝗱𝗲𝗰𝗮𝗱𝗲?

💥Rates are a lot higher now than they were just a few months ago.

💥Properties are taking longer to sell.

💥Property prices are no longer growing.

This is the current reality in the real estate market.

We can hide from it - or we can confront it. And by confronting it we can spot the opportunity.

Now let’s re-frame every single statement above.

🏡Those competing for property have to pay more for the money they need to borrow.

🏡We can now negotiate more favourable terms as a purchaser.

🏡Good quality properties in good locations can be acquired right now.

🏡Whether we think this is a great opportunity or an enormous challenge all comes down to the mindset we bring to this.

🏡Prepared investors and purchasers will use this time to acquire properties that have long-term upside.

How long do you need to be in your new job before applying for a loan?❓

👉Are you looking to make a move in your career? Perhaps it’s a promotion or a side step.

👉How long will you have to wait before you can buy again/refinance/restructure your loans.

👉The answer, for most people - worst case scenario - their first payslip (generally 1-2 weeks).

👉In many cases, we’ve had loans approved where a person has just started their role based on their work contract.

❓Are you holding off making a purchase or staying at a job that’s not right for you? Contact us via the link in the comments to see how we can help.⬇️

Self Employed tip for this time of the year:⬇️

📌Many self-employed borrowers hold off on lodging their financial information till the due date the following year.

📌This has the benefit of deferring your tax, but it comes with a huge drawback that you often can’t use that income you’ve just earned for borrowing purposes.

📌This often leaves you in a catch-22 - you can lodge your return early and pay taxes right now. Or you can hold off and often delay a future purchase/restructuring your loans onto cheaper rates (especially if you’ve had an increase in trading profit that year).

🎯The solution: Have your accountant prepare the financials for both your company and personal, and include a letter that states the figures provided are the same ones that will be lodged.

➡️Want to know how we can help you with this? Reach out to sprint finance today.📞

🏡Do you own investment properties? Are there loans on them?

🎯Here are some tips to make your (and your accountants) life a little easier this year with your loans.

✅Run a search on the interest paid for the financial year for all investment loan statements and take this with you when you see your accountant

✅Have multiple properties? Name each loan by the property name (eg. loan for Hamilton St). This also works where you’ve used an equity loan in your home to invest (eg. deposit loan for Hamilton St)

✅Run all the expenses for the investment property from a single account so you can track deductions in one place.

❓Is now the time to review your loan structure and ensure your investment loans are suiting your needs?

⬇️📞Contact us at Sprint Finance by clicking the link in the comments today.

Are you looking at upgrading/downsizing your home?🏡

So which do you do first? Buy and then try to sell as fast as possible, or sell and try and buy as fast as possible?

📌Our answer: Neither.

Our reason: When you’re stuck with two outcomes that cause you to rush - (either selling or buying quickly) you’re almost certainly leaving money on the table.

To quote the book: Never split the difference, “No deal is better than a bad deal”.

So how do you make it a good deal and put yourself in the driver's seat?

🎯Equity. Use equity.

You take the equity out of your home, borrow a 20% deposit + stamp duty, and then you use this to buy your next property.

This now has the dual benefit of either allowing you to sell your existing home at your own pace OR can convert your home into an investment property.

❓How are you able to own two properties at once, especially if your current bank says it’s not possible? That’s where we come in.

Want to know more? Contact us via the link in the comments today⬇️⬇️