Zakir Hossen - Mortgage Broker in Punchbowl

Mention interior designers and most people think glossy magazines, luxe fit-outs and big bucks. But interior designers are not necessarily expensive, and the right advice from the right style guru could add some panache and pizzazz to your d�cor for fewer dollars than you think. It�s as much about knowing who to use as it is about knowing how to use and when to use an interior designer.

When building:

An interior designer can help inject your personal style and personality into your new home. If building a custom or architect-designed home, an interior designer will help connect your carefully crafted exterior with what�s within. Your architect and designer may even work hand in hand to ensure there�s continuity throughout. It�s about creating spaces you enjoy but also those that function efficiently.

Inviting a designer to work on a new home is like presenting a painter with a blank canvas. But don�t wait until your house is complete to introduce your designer. Bring them into the project while it�s under construction to help choose materials for critical design features, such as the kitchen, bathrooms and floors.

Even if building a project home, with limited choices of features and materials, you can make the most of a designer to stamp your own style. Find a designer who is willing to work for just a few hours at an agreed rate to provide advice on colour, art choices and soft furnishings.

Avoid incorporating too many fads into permanent fittings and fixtures. Tastes, trends and technology change so limit bold statements to furniture and d�cor you can switch out easily.

When renovating:

Before you knock down walls or put up new ones, invest in a visit from an interior designer for sound advice and fresh thinking. A good designer will listen to your brief but overlay it with their experience and insights, which means they can see around the corners you can�t, helping you maximise design opportunities and avoid costly mistakes. Your designer can also project manage some aspects of the renovation for you, which is handy if you work full-time. Costs vary but add at least 10 per cent to your renovation budget for this service.

Show your designer any special items you wish to display, such as a painting or a collection, to ensure your remodel will accommodate them. Interior designers focus on the big picture but also bring an eye for detail to ensure your renovation reflects you, your interests and your lifestyle.

One of the biggest benefits of using an interior designer is their ability to act as a renovation referee, ensuring the project caters to both his and her needs and encouraging compromise where required.

When selling:

This is when designer tastes can really pay off. A well-staged home can help seal the deal sooner and potentially fetch bigger bucks than if you styled it yourself.

Staging can cost thousands, especially if you hire furniture and art (which can be worth it), but a designer can also help you show your house in its best light on a budget.

One of the first priorities is to declutter. A designer is likely to be more ruthless and less emotional about what to display, and will know how to make rooms appear as light and bright as possible.

Ask your designer to advise on paint, window dressings and soft furnishings, all of which can be easy and inexpensive to change before your house goes on the market.

How to work on a budget with an interior designer:

Find a designer who is willing to work for an hourly rate and be specific about how you wish to use their time. You might, for example, ask them to come up with design ideas on the proviso you put the effort into bringing them to life.

Share your decorating budget with the designer so they select furnishings, fixtures and fabrics you can afford.

Ask your designer to develop a mood board with colours and materials so you can create the look yourself.

If your budget is super skinny, engage a designer just to scope your colours. You can get expert advice on the right paint palette for as little as $150 an hour.

Find images in magazines and online to explain what you do and don�t like.

Drive away in your dream car with a low cost car loan.

Make your house a home with a low cost home improvement loan.

For the more adventurous - here is a guide to investing in Commercial Property.

When mum and dad investors consider property, most look no further than the residential market.

While homes and apartments may be seen as simpler and safer options, many investors are prepared to defy tradition and set their sights on the commercial sector.

Commercial property differs to residential, but with the right understanding of the key drivers, it need not be more complex.

How does commercial property differ to residential?

Firstly, commercial property attracts GST on the purchase price and the rent received, unlike residential real estate, which remains GST-free on both fronts.

An exception to this may be where the property is acquired with an existing lease in place. In this case, the vendor may be able to treat the sale as a 'GST exempt sale of a going concern' (refer www.ato.gov.au).

Commercial properties also usually attract higher yields - seven to eight per cent on average, compared to half that for the residential market. But the higher returns are often offset by the bigger risk of longer vacancy periods, which is why choice of property is paramount.*

On the up side, commercial tenants tend to take much longer leases than domestic renters, providing a stable financial footing for your investment.

Another distinction is who pays for property upgrades. In the residential sector, owners foot the bill for maintenance, repairs and improvements, while tenants usually cover the cost of refurbishments to suit their particular enterprise.

The right property

With retail outlets, offices and industrial estates all sitting at the heart of our economy, it can be hard to decide which type of commercial property to invest in.

Many first-time commercial investors are business owners looking to end the rent cycle and acquire an asset at the same time. If you don't own your own business, a good starting point is to consider the same principles that apply to residential investment.

Look for properties in growth sectors in areas with low vacancy rates. A drive around any light industrial estate, CBD or retail strip will quickly reveal the 'for rent' signs and give you a pulse check on local supply and demand.

You should also consider local infrastructure, such as transport, and even commercial entities that may be a drawcard for others. In the retail sector, a big brand name with a long-term lease (called an anchor tenant) can be the attraction for smaller operators looking to cash in on the high foot traffic the big name will generate.

Commercial tenants also look for properties with high visibility, easy access and plenty of parking, especially if there is no public transport nearby.

If looking at a light industrial property or office complex in a commercial estate, check it is not in a flood zone. Some commercial complexes are built in low-lying areas at risk of riverine or flash-flooding. Flood cover is not always offered on commercial properties and can be costly when available, so assess the risk thoroughly before you invest.

Commercial property agents will happily help you with the property hunt. Keep in mind their job is to sell, so make sure you do your own homework on values, vacancy rates, average rents and potential tenants for any property put forward.

Another helpful starting point is your mortgage broker. They can help you work out your budget based on your existing loans and financial arrangements and find a loan product suitable for your circumstances.

The right tenants

Attracting the right tenants is the key to successful commercial investment. Concerned by the potential for long vacancy periods, commercial property investors often snap up the first tenant who comes along.

Take time to research whether the applicant is in a viable sector with strong demand or a waning one. While you can lock any tenant into a three-year lease, an insolvent business will not be able to pay the rent, no matter how many demands you place on it.

On the other hand, a flourishing business with a strong track record may request a longer term lease in some cases up to 10 years. You may even be able to request a bank guarantee for the term of the lease.

* The information contained in this article does not constitute either financial or taxation advice. We recommend you speak with your financial advisor, and as taxation legislation is complex, you should consult a tax advisor or contact the ATO for further details and expert advice in relation to your personal circumstances.

My top 7 Tips for Buying Off The Plan

New home sales are back on the rise, fuelled in part by many investors and owner-occupiers buying off the plan.

The concept is straightforward: put up a deposit (usually 10 per cent) to help the developer fund construction and pay the balance when the build is complete.

Apartments are now springing up at a rapid rate in capital cities and popular holiday locations with the confidence that property prices will rise, handing buyers a tidy capital growth when they eventually take possession.

Developers sell off the plan to entice as many sales commitments as possible to then secure from their lender the finance they need for the build.

Because buyers are essentially handing over their deposit for the promise of an apartment they won't see for one to two years (or more), prices are set at current market rates with incentives often offered to entice buyers.

This adds to the capital gain potential, but price rises are never a sure thing, as we have seen in past years.

In exchange for your deposit, the developer should provide a contract that outlines the details of your particular purchase, the completion date for the development and the deadline for when a decision must be made as to whether the development will go ahead.

That decision usually hinges on whether sufficient finance has been secured. If the developer pulls the pin or passes the decision deadline, you should be entitled to a refund of your deposit, but this depends on the conditions of the sale contract.

It is imperative that you read this document carefully, and we recommend that you seek thorough legal advice. Full payment for the property is not required until settlement, which is usually one to three months post completion.

While buying off the plan looks great on paper and can reap rewards, getting in on the ground floor of a new development is not always a fast track to making money. Haven looks at how you can make the most of the opportunity and avoid some of the common pitfalls.

?- Time on your side

One of the biggest advantages of buying off the plan is time. Unlike traditional property purchases with relatively short windows to round up the total finance, you will have at least 12 months, if not longer, to settle.

Savvy buyers will take advantage of this extra time to save their pennies and reduce their borrowings.

- New home, no hassles

If you dream of a new home but have nightmares at the thought of building one, an off-the-plan purchase may be the perfect compromise.

Although you will not get to design everything as you would with a custom-built home, most off-the-plan developments allow some customisation of finishes and fixtures.

Make sure your contract outlines what you can tailor and that you are clear on any additional costs.

- First-home-buyer advantage

Various incentives are still being dangled in front of first-home-buyers, which may add to the appeal of buying off the plan.

Concessions vary across Australia and some have been curbed since January 1, so visit your State or Territory web site for the latest information on grants and exemptions.

You can also research your eligibility for stamp duty concessions on new properties at www.stampdutycalculator.com.au

- Investment incentive

Off-the-plan apartments are often pitched heavily at investors due to the tax* benefits that come with depreciation on new properties and rental assurances.

Tax savings will depend on your individual circumstances, but generally the newer the property, the higher the depreciation allowance for the building and fixtures.

Investors may also be offered attractive rental returns for a limited period. Make sure you do your homework on rental returns on similar properties in the area before accepting the developer's terms.

Be wary of over-inflated rental figures. Builders will sometimes promise a high-rent yield to lure investors, build the cost into the property price and then subsidise any gap themselves for a short period.

When the rental guarantee expires, you may find the actual market rent falls well short of what you originally pocketed. If investing, make sure you have the option to manage the property yourself or with your chosen property manager from the time you take possession.

- Beware a boom

Many buyers get swept up on a wave of rising property prices when they hand over their deposit in exchange for a floor plan. Historically, property is a consistent long-term performer, but property prices can plateau and even wane at the mercy of economic factors.

Buyers also need to be wary of over-supply, which may devalue their property. Queensland's Gold and Sunshine Coasts are carrying a glut of apartments on the back of many years of off- the-plan sales, while the skylines of capitals such as Canberra have real estate commentators urging caution.

Make sure you consider the bigger picture if buying off the plan. Research how many other developments are planned in the area and whether any increase in apartment numbers is justified by new or improved infrastructure, such as transport corridors, business precincts, universities or hospitals.

- Be discerning about the developer

Make sure you purchase from a reputable builder and take the time to research their previous projects. Do they use quality contractors? Do they deliver projects on time? Make a point of visiting some of their projects so you can assess the finished product first-hand.

My Top 7 Top Tips

1. Investments like this are big decisions, so investing in the right professionals to have onside before you commit is money well spent. Ensure you get professional legal advice on any contract before you sign it and that you speak with your financial advisor or tax professional to make sure you've got the right advice from day one.

2. Make sure your deposit will be refunded if the project doesn't go ahead by a certain date.

3. Make sure the contract contains as much detail as possible about the finished product.

4. Be clear on what finishes and fixtures you can customise.

5. Find out if you can on-sell during construction in case your circumstances change.

6. Ask if you can inspect the site during construction.

7. Talk to your mortgage broker about the right loan structure for your circumstances.

How many ways can you buy a swimming pool?

Question: How many ways can you buy a swimming pool?
Answer: At least 8 different ways that I can think of.

And not all of those ways may be suitable for everyone - here is my list.

Not everyone wants a swimming pool either. But perhaps a new car, maybe a boat, a motorbike or a decent holiday? A caravan or a new garage? An aeroplane even?

Doesn't really matter what it is, but if you need to spend a serious amount of money, it may be worth looking at some of the things you can do with your home loan to facilitate your new purchase.

You see, 6 of those 8 different ways I mentioned actually involve your home loan, so it's probably worth a look first, just to make sure.

That's where I can help. It doesn't cost anything to check out what would work for you, and then you can actually make an informed choice.

The least I can do is point you in the right direction and the privacy act ensures our conversation is entirely confidential.

What do you think?

Contact me and we'll see where you stand.https://www.mortgageaustralia.com.au/email/files/8waystobuythatpool.pdf

For many Australians retirement is an opportunity to down-size their homes and simplify their lives. For more than 138,000 retirees*, that means opting for life in a retirement village.

Village living offers an appealing lifestyle, especially for those looking for a sense of community and to spend their new-found free time on recreation rather than maintaining a property.

But the process of taking up a spot in a retirement complex is very different to buying your own home. Haven takes a look at some of the pros and cons of shifting to a retirement village.

Not an investment decision

Retirees need to consider a retirement complex to be a lifestyle choice, not an investment decision. Rather than buying a physical appreciating asset, you are entering a contract to occupy a place in the village for an entry fee.

There are usually three types of contracts:

Strata title: You pay an agreed amount to a former resident or the operator, and then own the unit. You also usually need to enter into a service agreement with the operator.

Loan and licence: May be offered by not-for-profit organisations, such as churches. You usually pay a contribution in the form of an interest-free loan.

Leasehold: The lease is usually registered on the title deed, which protects you if the village is sold. You pay a lump sum for the leasehold.

Entry, ongoing and exit fees usually apply to all three contract types.

Rather than a sale price, you pay an entry fee, which varies greatly depending on the location of the complex and the amenities and services offered. On average, the entry fee for a two-bedroom unit is about 90 per cent of the median property price for the location.

You will also be charged ongoing service fees to cover the upkeep of amenities in the village, such as swimming pools, gardens, recreation areas and communal transport.

Don�t enter into any agreement without the advice of a specialist retirement lawyer. They can help you understand the fine print and guide you through the system based on your state laws.

Age pension

Your retirement advisor will also help you navigate your age pension eligibility. The amount you pay as an entry fee to a retirement village can affect whether you are classified as a homeowner for pension purposes or a non-homeowner.

It depends whether the entry contribution is higher than the extra allowable amount (EAA), as determined by Centrelink. The EAA is the difference between the non-homeowner and homeowner assets test threshold for the age pension at the time the entry contribution is paid.

The extra allowable amount is currently $146,500. Whether you are considered a homeowner affects the amount of assets you can own without impacting your pension entitlement.

If you are not considered a homeowner, your entry contribution is included as an asset, but it is not classed as a financial investment and won�t be considered as a source of income. You may also be eligible for rental assistance.

Shop around

Just like when you buy a property, you should do your homework before settling on a retirement village. Take a tour and talk to residents about what they like and dislike about the place. Think about what you want out of your retirement and whether the complex caters to those needs.

- If you want to entertain, do you have space in your unit or is there a communal area you can use?
- Is there a gym or swimming pool where you can exercise?
- Can you have guests stay over and, if so, for how long?

This can be a key consideration for grandparents who may take care of grandchildren. You should also ask about transport help. Many complexes provide a private bus service to shops and clubs for residents who don�t wish to drive.

Generally, the more comprehensive the services the more you pay in body corporate fees, so make sure you understand the fee structure and what�s included before signing on the dotted line.

Community spirit

One of the biggest attractions of retirement living is the instant community. Many villages provide social opportunities ranging from outings to quiz nights, dinners and interest clubs. Participation is entirely optional but there is usually no shortage of opportunities to get to know and socialise with your neighbours.

Aged care included

Many retirees plan ahead and scout out a village with an on-site aged care facility to avoid another relocation in their latter years. Just be mindful the level of care someone needs is determined by an Aged Care Assessment Team and that not all facilities offer high care should you or your partner require it.

A place in aged care may also require separate payments, or entry fee, and many facilities will have waiting lists. It�s also common for one partner to have greater needs than another, so couples with health or mobility issues need to ensure the complex they settle on caters to their needs.

When you leave

When a resident moves out, it is generally because they have passed away or relocated to an aged care facility. Financially, it is usually the beneficiaries of the resident�s estate who are most impacted.

When a resident sells up they, or their estate, are generally charged an exit fee, or a deferred management fee, which is usually charged annually at 2.5 to 3.5% of the original sale price, capped at 10 years.

Some complexes may also require a percentage of any capital gains made. Make sure you read the fine print of the original sale contract and seek advice from a specialist retirement lawyer.

*Retirement Villages Association Retirement Living Survey 2011

Get new equipment. Keep your cash flow.

How to avoid disappointment when downsizing:

Just as many young families look to upgrade their home at some point, most of us will eventually decide that it's time to downsize.

You might be getting closer to retirement age and feel like it's time to free up some cash, rather than having it all tied up in your assets. Perhaps you can't see the point in maintaining a 5 bedroom home just in case the grandchildren come to stay.

Some retirees decide to downsize because they want to travel more, and a low-maintenance home is a better fit. And then unfortunately there are some people who are forced to downsize for less pleasant reasons, such as financial hardship, divorce, or the death of a spouse.

Whilst downsizing might seem like the solution to all of your problems, it's not always smooth sailing. Many downsizers jump from the frying pan into the fire by making an impulse purchase without doing their research. To avoid running into trouble - make sure you consider all of these factors:

Where do you really want to live?

It might seem like a lovely idea to spend your retirement in a small country town, reading by the fire in your single bedroom cottage. But how far would you be from family and friends? Many downsizers move to their dream location, only to find that it's rather lonely and their children don't visit nearly as much as they thought.

If you decide after a couple of years that you're not happy with your decision, it might be difficult to get back into the property market closer to home. Think carefully about where you really want to be in the long term.

What amenities do you need to have nearby?

You might be in fairly good health now, but it could be a great help one day to live within striking distance of a medical centre. It's also worth investigating the distance to the nearest shops, restaurants, cinemas and recreational facilities.

What type of property do you prefer?

Do you plan to keep any of your furniture? How do you feel about growing older in a house with a spiral staircase? It's important to think about what suits you now, and into the future when it comes to choosing a property to downsize into. If you're moving from a mansion on 20 acres, you might struggle to adjust to a single bedroom townhouse.

What lifestyle are you looking for?

Do you love peace and quiet? Do you want to be surrounded by other people around your age? Think carefully about what's important to you. If you love your privacy and the sounds of nature - a little unit in a bustling retirement community might not be your ideal downsizing opportunity.

What are the real costs of downsizing?

Although you're probably looking to free up some cash, it's important to look into the costs associated with selling your property, and buying your next property.

Some retirement communities charge enormous fees, and if you choose a unit or townhouse you might be up for Owner's Corporation fees on top of your council rates.

Examine the numbers to make sure you're really saving money.

How to help your children without losing everything...

When your children were born, you had so many hopes and dreams for their future. You imagined a life filled with happiness and success. From day one, you set about helping them to achieve their goals, everything from learning their first words, to getting a job.

But for many parents, there comes a time when you might be asked to make a decision that could be of great benefit to your child, and very risky for you.

Guarantor Loans involve using the equity in your own home in order to secure the loan of a family member. Parents who agree to act as a guarantor for their child, are effectively putting their home up as security, and agreeing to cover any amounts that their child might be unable to pay in the future.

These sorts of loans are very helpful to first home buyers, because they allow individuals to borrow 100% of the purchase price or more, using the equity in their family member's home as a kind of insurance.

Unfortunately, many parents don't understand the weight of this decision, and the conditions that they will be agreeing to if they sign the loan. Some parents feel pressured to help out and don't take the time to consider their options.

If you do want to enter into this sort of arrangement, there are a few things you can do to protect yourself:

Seek independent legal advice before you agree to anything. It's best to address your concerns with a professional before an offer is made on a property. This will avoid a tricky situation for your child if you decide not to act as guarantor and they're unable to settle.
Educate yourself about your responsibilities as guarantor so that you can make an informed decision.
Meet separately with your mortgage broker or lender so that you can ask plenty of questions without feeling pressured to sign.
Be honest with yourself about whether your child is ready for the responsibility of a mortgage. You know more than the lender does about their financial habits, and it's in your best interests to be a little bit sceptical. After all, you will ultimately be responsible for any amounts that they can't pay, for whatever reason.
Plan for the worst, and work out if you can afford to service the loan if something unexpected happens and your child becomes unable to make their repayments.
Insist on insurance to cover against illness, injury or sudden job loss.
It's also worth considering all of the alternatives before you commit to act as guarantor. Sometimes a monetary gift to cover the deposit is equally helpful, and less risky for everyone involved. After all, you want to be able to enjoy your retirement in style!

How to take advantage of a buyer's market:

One of the keys to success in the property market is TIMING.

So how do you know when the time is right to step up on the property ladder?

For the answer, download our guide to "Taking Advantage of a Buyer's Market".https://www.mortgageaustralia.com.au/email/files/takingadvantageofabuyersmarket.pdf

Have you accumulated a little extra credit card or personal loan debt? Or are you managing multiple balances with high interest rates? Our team can help you take control of your debt with a low-rate debt consolidation loan.

Our partners offer a fast, simple process to simplify your payments and start saving with lower interest rates. Don�t delay, get in touch today!

Have you spotted a property bargain recently?

If you think there may be a few property bargains just waiting for you to check them out, why don't you ask me to confirm your borrowing capacity before you go and have a look around?

There have been lots of changes in home loans too, so a bit of homework could be worthwhile.

It doesn't cost anything to find out and usually only takes a few minutes. The least I can do is point you in the right direction and the privacy act ensures our conversation is entirely confidential.

Some of my more astute investors take the opportunity during these times to purchase more investment properties while the market conditions are good.

If you'd like to know more about this, contact me about using your equity to purchase an investment property.

An email or a phone call is all it takes.

I recently heard an inspiring story about a young lady named Hannah.

Hannah was living with her boyfriend of several years, Sam, and they had been saving to buy a home together in the near future. She had a small amount of money in her personal bank account, but most of her savings were in the joint bank account that they had opened together.

One day Hannah came home to find that Sam had suddenly moved out. His clothes were all gone, and he had taken the television and the computer. There was no warning, although in hindsight she recalled a few small things that she failed to notice. Hannah was left alone with the rent to pay, unsure of what had happened. It turned out that Sam had a gambling addiction, and it wasn't until a couple of days later that Hannah discovered he had emptied their joint account.

Rather than giving up hope on her dream of buying a home, Hannah took her disappointment in stride and got to work. The lease was nearly up on the unit anyway, so she declined the offer to renew.

A friend had mentioned housesitting as a method of living cheaply, and Hannah saw this as an opportunity to start saving again. Over the next two years, she looked after six houses - all very luxurious homes in great locations near the city, and she saved as much of her wage as possible.

Within two years, Hannah had saved $50k, which was enough for a deposit and stamp duties on a small unit. Although it was a bit of a downgrade from the luxury that housesitting had provided, she was absolutely thrilled to have finally reached her goal of owning a property - and without help from anyone else.

This story is a reminder of how you really can recover from any setback if you're dedicated enough. Things go wrong, and people lose money all the time, but if you think outside of the square you will find a way to improve your situation in no time.